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<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">1</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">. </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">General Information</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The accompanying consolidated financial statements include the accounts of Diana Containerships Inc. (“DCI”) and its wholly-owned subsidiaries (collectively, the “Company”). Diana Containerships Inc. was incorporated on January 7, 2010 under the laws of the Republic of Marshall Islands for the purpose of engaging in any lawful act or activity under the Marshall Islands Business Corp</font><font style="font-family:Calibri;font-size:11pt;">orations Act. In April 2010, the Company's</font><font style="font-family:Calibri;font-size:11pt;"> articles of incorporation and bylaws were amended. Under the amende</font><font style="font-family:Calibri;font-size:11pt;">d articles of incorporation, the Company's</font><font style="font-family:Calibri;font-size:11pt;"> authorized share capital increased from 500 common shares to 500 million </font><font style="font-family:Calibri;font-size:11pt;">of </font><font style="font-family:Calibri;font-size:11pt;">common shares at par value $0.01 and 25 million </font><font style="font-family:Calibri;font-size:11pt;">of </font><font style="font-family:Calibri;font-size:11pt;">preferred shares at par value $0.01. On April 6, 2010, the Company completed a private offering under rule 144A and Regulation S and Regulation D of the Securities Act of 1933, as amended, the net proceeds of which amounted to $85</font><font style="font-family:Calibri;font-size:11pt;">.3 million</font><font style="font-family:Calibri;font-size:11pt;">. A controlling ownership interest of 54.6% over DCI's common stock was acquired by Diana Shipping Inc. (“DSI”) in this private offering.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">On October 15, 2010, </font><font style="font-family:Calibri;font-size:11pt;">the Company</font><font style="font-family:Calibri;font-size:11pt;"> filed a registration statement on Form F-4</font><font style="font-family:Calibri;font-size:11pt;"> with the US Securities and Exchange Commission</font><font style="font-family:Calibri;font-size:11pt;">, to register an aggregate of 2,558,997 common shares sold previously in the private offering. On October 19, 2010 the registration statement was declared effective. On January 19, 2011, and following DSI's decision for a partial spin-off of 80% of its interest in DCI </font><font style="font-family:Calibri;font-size:11pt;">through a</font><font style="font-family:Calibri;font-size:11pt;"> distribution to DSI's shareholders, D</font><font style="font-family:Calibri;font-size:11pt;">C</font><font style="font-family:Calibri;font-size:11pt;">I began “regular way”</font><font style="font-family:Calibri;font-size:11pt;"> trading</font><font style="font-family:Calibri;font-size:11pt;"> on the Nasdaq Global Market.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">On June 15, 2011, the Company completed a public offering in the United States under the United States Securities Act at 1933, as amended, the net proceeds of which amounted to </font><font style="font-family:Calibri;font-size:11pt;">$121.5</font><font style="font-family:Calibri;font-size:11pt;"> million</font><font style="font-family:Calibri;font-size:11pt;">, includ</font><font style="font-family:Calibri;font-size:11pt;">ing $20.0 million invested by DS</font><font style="font-family:Calibri;font-size:11pt;">I</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">in a concurrent private placement </font><font style="font-family:Calibri;font-size:11pt;">(Note 8</font><font style="font-family:Calibri;font-size:11pt;">(c)</font><font style="font-family:Calibri;font-size:11pt;">)</font><font style="font-family:Calibri;font-size:11pt;">.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The Company </font><font style="font-family:Calibri;font-size:11pt;">is</font><font style="font-family:Calibri;font-size:11pt;"> engaged in the seaborne transportation industry through the ownership and operation of containerships and is the sole owner of all outstanding shares of the following subsidiaries</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">each</font><font style="font-family:Calibri;font-size:11pt;"> incorporated in the Marshall Islands:</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'></p><ul><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Likiep Shipping Company Inc. (“Likiep”),</font><font style="font-family:Calibri;font-size:11pt;"> owner of the </font><font style="font-family:Calibri;font-size:11pt;">Marshall Islands</font><font style="font-family:Calibri;font-size:11pt;"> flag</font><font style="font-family:Calibri;font-size:11pt;">, 3,426</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">TEU capacity </font><font style="font-family:Calibri;font-size:11pt;">container </font><font style="font-family:Calibri;font-size:11pt;">vessel</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> “</font><font style="font-family:Calibri;font-size:11pt;">Sagitta</font><font style="font-family:Calibri;font-size:11pt;">”, which was built and delivered </font><font style="font-family:Calibri;font-size:11pt;">on</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">June </font><font style="font-family:Calibri;font-size:11pt;">29, </font><font style="font-family:Calibri;font-size:11pt;">20</font><font style="font-family:Calibri;font-size:11pt;">10</font><font style="font-family:Calibri;font-size:11pt;">.</font><p> </p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Orangina Inc. (“Orangina”),</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">owner of the Marshall Islands flag, 3,426 TEU capacity container vessel, “Centaurus”, which was built</font><font style="font-family:Calibri;font-size:11pt;"> and delivered on July 9, 2010</font><font style="font-family:Calibri;font-size:11pt;">.</font><p> </p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Lemongina Inc. (“Lemongina”</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">)</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">which a</font><font style="font-family:Calibri;font-size:11pt;">s at </font><font style="font-family:Calibri;font-size:11pt;">December 31, 2011</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> did not have any operations.</font><p> </p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Ralik </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Shipping Company Inc.</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> (“Ralik”), </font><font style="font-family:Calibri;font-size:11pt;">owner of the Marshall Islands flag, </font><font style="font-family:Calibri;font-size:11pt;">4,206</font><font style="font-family:Calibri;font-size:11pt;"> TEU capacity container vessel, “</font><font style="font-family:Calibri;font-size:11pt;">Maersk Madrid</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">(</font><font style="font-family:Calibri;font-size:11pt;">built </font><font style="font-family:Calibri;font-size:11pt;">in 1989</font><font style="font-family:Calibri;font-size:11pt;">)</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">which was acquired </font><font style="font-family:Calibri;font-size:11pt;">on June </font><font style="font-family:Calibri;font-size:11pt;">14</font><font style="font-family:Calibri;font-size:11pt;">, 201</font><font style="font-family:Calibri;font-size:11pt;">1</font><font style="font-family:Calibri;font-size:11pt;"> (Note 5).</font><p> </p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Mili</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Shipping Company Inc.</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> (“Mili”), </font><font style="font-family:Calibri;font-size:11pt;">owner of the Marshall Islands flag, </font><font style="font-family:Calibri;font-size:11pt;">4,714</font><font style="font-family:Calibri;font-size:11pt;"> TEU capacity container vessel, “Maersk Malacca” </font><font style="font-family:Calibri;font-size:11pt;">(</font><font style="font-family:Calibri;font-size:11pt;">built</font><font style="font-family:Calibri;font-size:11pt;"> in 1990</font><font style="font-family:Calibri;font-size:11pt;">)</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">which was acquired </font><font style="font-family:Calibri;font-size:11pt;">on </font><font style="font-family:Calibri;font-size:11pt;">June 22</font><font style="font-family:Calibri;font-size:11pt;">, 2011 (Note 5).</font><p> </p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Ebon</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Shipping Company Inc.</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> (“</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Ebon</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">”), </font><font style="font-family:Calibri;font-size:11pt;">owner of the Marshall Islands flag, </font><font style="font-family:Calibri;font-size:11pt;">4,714</font><font style="font-family:Calibri;font-size:11pt;"> TEU capacity container vessel, “</font><font style="font-family:Calibri;font-size:11pt;">Maersk Merlion</font><font style="font-family:Calibri;font-size:11pt;">” </font><font style="font-family:Calibri;font-size:11pt;">(</font><font style="font-family:Calibri;font-size:11pt;">built </font><font style="font-family:Calibri;font-size:11pt;">in </font><font style="font-family:Calibri;font-size:11pt;">1990</font><font style="font-family:Calibri;font-size:11pt;">)</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">which was acquired </font><font style="font-family:Calibri;font-size:11pt;">on </font><font style="font-family:Calibri;font-size:11pt;">June </font><font style="font-family:Calibri;font-size:11pt;">17</font><font style="font-family:Calibri;font-size:11pt;">, 201</font><font style="font-family:Calibri;font-size:11pt;">1</font><font style="font-family:Calibri;font-size:11pt;"> (Note 5).</font><p> </p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Mejit</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Shipping Company Inc.</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> (“Mejit”), </font><font style="font-family:Calibri;font-size:11pt;">was </font><font style="font-family:Calibri;font-size:11pt;">established</font><font style="font-family:Calibri;font-size:11pt;"> for the purpose of acquiring container vessels</font><font style="font-family:Calibri;font-size:11pt;">.</font><font style="font-family:Calibri;font-size:11pt;"> As at December 31, 2011, the Mejit did not have any operations (Note 14).</font><p><font style="font-family:Calibri;font-size:11pt;margin-left:18px;">       </font></p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Micronesia</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Shipping Company Inc.</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> (“Micronesia”), </font><font style="font-family:Calibri;font-size:11pt;">was </font><font style="font-family:Calibri;font-size:11pt;">established </font><font style="font-family:Calibri;font-size:11pt;">for the purpose of acquiring container vessels</font><font style="font-family:Calibri;font-size:11pt;">.</font><font style="font-family:Calibri;font-size:11pt;"> As at December 31, 2011, the </font><font style="font-family:Calibri;font-size:11pt;">Micronesia</font><font style="font-family:Calibri;font-size:11pt;"> did not have any operations (Note 14).</font><p> </p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Rongerik</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Shipping Company Inc.</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> (“Rongerik”), </font><font style="font-family:Calibri;font-size:11pt;">entered into a Memorandum of </font><font style="font-family:Calibri;font-size:11pt;">A</font><font style="font-family:Calibri;font-size:11pt;">greement</font><font style="font-family:Calibri;font-size:11pt;"> with </font><font style="font-family:Calibri;font-size:11pt;">an unrelated </font><font style="font-family:Calibri;font-size:11pt;">third party company</font><font style="font-family:Calibri;font-size:11pt;"> for the purchase of a</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">3</font><font style="font-family:Calibri;font-size:11pt;">,7</font><font style="font-family:Calibri;font-size:11pt;">39</font><font style="font-family:Calibri;font-size:11pt;"> TEU capacity container vessel, “</font><font style="font-family:Calibri;font-size:11pt;">Cap San Marco</font><font style="font-family:Calibri;font-size:11pt;">” </font><font style="font-family:Calibri;font-size:11pt;">(</font><font style="font-family:Calibri;font-size:11pt;">built </font><font style="font-family:Calibri;font-size:11pt;">in </font><font style="font-family:Calibri;font-size:11pt;">2001</font><font style="font-family:Calibri;font-size:11pt;">),</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">for a purchase price of $33,000.</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">The vessel was delivered in February 2012.</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">(Note 4</font><font style="font-family:Calibri;font-size:11pt;"> and 14</font><font style="font-family:Calibri;font-size:11pt;">).</font><p><font style="font-family:Calibri;font-size:11pt;margin-left:18px;">       </font></p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Utirik</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Shipping Company Inc.</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> (“Utirik”), </font><font style="font-family:Calibri;font-size:11pt;">entered into a Memorandum of </font><font style="font-family:Calibri;font-size:11pt;">A</font><font style="font-family:Calibri;font-size:11pt;">greement with a</font><font style="font-family:Calibri;font-size:11pt;">n unrelated</font><font style="font-family:Calibri;font-size:11pt;"> third party company for the purchase of a</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">3,739</font><font style="font-family:Calibri;font-size:11pt;"> TEU capacity container vessel, “</font><font style="font-family:Calibri;font-size:11pt;">Cap San Raphael</font><font style="font-family:Calibri;font-size:11pt;">” </font><font style="font-family:Calibri;font-size:11pt;">(</font><font style="font-family:Calibri;font-size:11pt;">built </font><font style="font-family:Calibri;font-size:11pt;">in 2002</font><font style="font-family:Calibri;font-size:11pt;">),</font><font style="font-family:Calibri;font-size:11pt;"> for a purchase price of $33,000.</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">The vessel was delivered in February 2012.</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">(Note 4</font><font style="font-family:Calibri;font-size:11pt;"> and 14</font><font style="font-family:Calibri;font-size:11pt;">).</font></li></ul><p style='margin-top:0pt; margin-bottom:10pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">During 2011 and 2010, two charterers accounted for more than 10% of the Company's revenues as follows:</font></p><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 20px"><td style="width: 411px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:411px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Charterer</font></td><td style="width: 12px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:131px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2011</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:131px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2010</font></td></tr><tr style="height: 20px"><td style="width: 411px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:411px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">A</font></td><td style="width: 12px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">73%</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">51%</font></td></tr><tr style="height: 20px"><td style="width: 411px; text-align:left;border-color:#000000;min-width:411px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">B</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">27%</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">41%</font></td></tr></table></div>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">2</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">. </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">Significant</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">Accounting</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">Policies</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> and Recent Accounting Pronouncements</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'></p><ul><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Preparation of financial statements</font><font style="font-family:Calibri;font-size:11pt;">: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of Diana Containerships Inc. and its wholly-owned subsidiaries referred to in Note 1 above. All significant intercompany balances and transactions have been eliminated upon consolidation.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Use of Estimates: </font><font style="font-family:Calibri;font-size:11pt;">The preparation of </font><font style="font-family:Calibri;font-size:11pt;">consolidated</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the </font><font style="font-family:Calibri;font-size:11pt;">consolidated</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Other Comprehensive Income</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> / (loss)</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">: </font><font style="font-family:Calibri;font-size:11pt;">The Company follows the provisions of Accounting Standard Codification (ASC) 220, “Comprehensive Income”, which requires separate presentation of </font><font style="font-family:Calibri;font-size:11pt;">certain transactions, which are recorded directly as components of stockholders' equity</font><font style="font-family:Calibri;font-size:11pt;">. The Company presents Other Comprehensive Income / (Loss)</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">in a separate statement</font><font style="font-family:Calibri;font-size:11pt;"> according to </font><font style="font-family:Calibri;font-size:11pt;">ASU 2011-05 described below in new accounting pronouncements.</font><p><font style="font-family:Calibri;font-size:11pt;margin-left:28.35px;">       </font></p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Foreign Currency Translation: </font><font style="font-family:Calibri;font-size:11pt;">The functional currency of the Company is the U.S. Dollar because the </font><font style="font-family:Calibri;font-size:11pt;">Company operate</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> its </font><font style="font-family:Calibri;font-size:11pt;">vessels in international shipping markets, and therefore</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> primarily transact</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> business in U.S. Dollars. The Company's books of accounts are maintained in U.S. Dollars. Transactions involving other currencies during the </font><font style="font-family:Calibri;font-size:11pt;">period presented </font><font style="font-family:Calibri;font-size:11pt;">are converted into U.S. Dollars using the exchange rates in effect at the time of the transact</font><font style="font-family:Calibri;font-size:11pt;">ions. At the balance sheet date</font><font style="font-family:Calibri;font-size:11pt;">, monetary assets and liabilities which are denominated in other currencies are translated into U.S. Dollars at the </font><font style="font-family:Calibri;font-size:11pt;">period</font><font style="font-family:Calibri;font-size:11pt;">-end exchange rates. Resulting gains or losses are reflected sepa</font><font style="font-family:Calibri;font-size:11pt;">rately in the </font><font style="font-family:Calibri;font-size:11pt;">accompanying consolidated statement</font><font style="font-family:Calibri;font-size:11pt;"> of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;">. </font><p><font style="font-family:Calibri;font-size:11pt;margin-left:28.35px;">       </font></p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Cash and Cash Equivalents: </font><font style="font-family:Calibri;font-size:11pt;">The Company considers highly liquid investments such as time deposits, certificates of deposit and their equivalents with an original maturity of three months or less to be cash equivalents. </font><p><font style="font-family:Calibri;font-size:11pt;margin-left:28.35px;">       </font></p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Restricted Cash</font><font style="font-family:Calibri;font-size:11pt;font-style:italic;">: </font><font style="font-family:Calibri;font-size:11pt;">Restricted cash includes minimum cash deposits required to be maintained under the Company's borrowing arrangement.</font><font style="font-family:Calibri;font-size:11pt;font-style:italic;"> </font><p><font style="font-family:Calibri;font-size:11pt;margin-left:28.35px;">       </font></p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Accounts Receivable, Trade: </font><font style="font-family:Calibri;font-size:11pt;">The account includes receivables from charterers for hire, freight and demurrage billings. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts.</font><font style="font-family:Calibri;font-size:11pt;"> No provision for doubtful accounts has been made as of December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> 2011</font><font style="font-family:Calibri;font-size:11pt;"> and 2010</font><font style="font-family:Calibri;font-size:11pt;">.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Inventories: </font><font style="font-family:Calibri;font-size:11pt;">Inventories consist of lubricants and victualling which are stated at the lower of cost or market. Cost is determined by the first in, first out method. Inventories may also consist of bunkers when the vessel operates under freight charter or when on the </font><font style="font-family:Calibri;font-size:11pt;">balance sheet</font><font style="font-family:Calibri;font-size:11pt;"> date a vessel has been redelivered by its previous charterers and h</font><font style="font-family:Calibri;font-size:11pt;">as not yet been delivered to new charterers</font><font style="font-family:Calibri;font-size:11pt;">, or remains idle. Bunkers are also stated at the lower of cost or market and cost is determined by the first in, first out method.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Vessel Cost: </font><font style="font-family:Calibri;font-size:11pt;">Vessels are stated at cost which consists of the contract price and costs incurred upon acquisition or delivery of a vessel from a shipyard. Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earnings capacity or improve the efficiency or safety of the vessels; otherwise these amounts are charged to expense as incurred. </font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Vessel Depreciation</font><font style="font-family:Calibri;font-size:11pt;">: </font><font style="font-family:Calibri;font-size:11pt;">The Company depreciates containership vessels on a straight-line basis over their estimated useful lives, estimated to be 30 years from the date of initial deli</font><font style="font-family:Calibri;font-size:11pt;">very from the shipyard</font><font style="font-family:Calibri;font-size:11pt;">. </font><font style="font-family:Calibri;font-size:11pt;">Second-hand</font><font style="font-family:Calibri;font-size:11pt;"> vessels are depreciated from the date of their acquisition through their remaining estimated useful life. Depreciation is based on costs less the </font><font style="font-family:Calibri;font-size:11pt;">estimated residual scrap value, which is assessed at</font><font style="font-family:Calibri;font-size:11pt;"> $200 </font><font style="font-family:Calibri;font-size:11pt;">and</font><font style="font-family:Calibri;font-size:11pt;"> $350 </font><font style="font-family:Calibri;font-size:11pt;">per light-weight ton</font><font style="font-family:Calibri;font-size:11pt;">, depending on the vessel's age</font><font style="font-family:Calibri;font-size:11pt;"> and market conditions</font><font style="font-family:Calibri;font-size:11pt;">. A decrease in the useful life of a containership or in its residual</font><font style="font-family:Calibri;font-size:11pt;"> scrap</font><font style="font-family:Calibri;font-size:11pt;"> value would have the effect of increasing the annual depreciation charge. When regulations place limitations on the ability of a vessel to trade on a worldwide basis, the vessel's useful life </font><font style="font-family:Calibri;font-size:11pt;">is</font><font style="font-family:Calibri;font-size:11pt;"> adjusted at the date such regulations are adopted.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Impairment of Long-Lived Assets: </font><font style="font-family:Calibri;font-size:11pt;">The Company</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">follows ASC 360-10-40 “Impairment or Disposal of Long-</font><font style="font-family:Calibri;font-size:11pt;">Lived</font><font style="font-family:Calibri;font-size:11pt;"> Assets”, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. </font><font style="font-family:Calibri;font-size:11pt;">The Company </font><font style="font-family:Calibri;font-size:11pt;">reviews vessels for impairment whenever events or changes in circumstances indicate that the c</font><font style="font-family:Calibri;font-size:11pt;">a</font><font style="font-family:Calibri;font-size:11pt;">rrying amount of a vessel may not be recoverable. When the estimate of future undiscounted net operating cash flows, excluding interest charges, expected to be generated by the use of the vessel over its remaining useful life and its eventual disposition is less than its carrying amount, the Company evaluates the vessel for impairment loss. Measurement of the impairment loss is based on the fair value of the vessel. The fair value of the vessel is determined based on management estimates and assumptions and by making use of available market data and third party valuations. </font><font style="font-family:Calibri;font-size:11pt;">The Company evaluates the carrying amounts and periods over which vessels are depreciated to determine if events have occurred which would require modification to their carrying values or useful lives. </font><font style="font-family:Calibri;font-size:11pt;">In evaluating useful lives and carrying values of long-lived assets, management reviews certain indicators of potential impairment, such as undiscounted projected operating cash flows, vessel sales and purchases, business plans and overall market conditions. The current conditions in the </font><font style="font-family:Calibri;font-size:11pt;">containerships</font><font style="font-family:Calibri;font-size:11pt;"> market with decreased charter rates and decreased vessel market values are conditions that the Company considers indicators of a potential impairment. </font><font style="font-family:Calibri;font-size:11pt;">In developing estimates of future undiscounted cash flows, the Company makes assumptions and estimates about the vessels' future performance, with the significant assumptions being related to charter rates, fleet utilization, vessels' operating expense</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;">, vessels' residual value and the estimated remaining useful life of each vessel. The assumptions used to develop estimates of future undiscounted cash flows are based on historical trends as well a</font><font style="font-family:Calibri;font-size:11pt;">s future expectations</font><font style="font-family:Calibri;font-size:11pt;">.</font><p> </p><p><font style="font-family:Calibri;font-size:11pt;margin-left:36px;">The Company determines undiscounted projected net operating cash flows for each vessel and compares it to the vessel's carrying value. The projected net operating cash flows are determined by considering the historical and estimated vessels' performance and utilization, the charter revenues from existing time charters for the fixed fleet days and an estimated daily time charter equivalent for the unfixed days (based on the most recent 10 year average historical </font><font style="font-family:Calibri;font-size:11pt;">6-12</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">months time </font><font style="font-family:Calibri;font-size:11pt;">charter rates available for each type of vessel, considering also current market rates) over the remaining estimated life of each vessel, net of brokerage commissions, expected outflows for scheduled vessels' maintenance and vessel operating expenses assuming an average annual inflation rate of 3%.  Effective fleet utilization is assumed to 98% in the Company's exercise, taking into account the period(s) each vessel is expected to undergo her scheduled maintenance (dry docking and special surveys), as well as an estimate of 1% off hire days each year, assumptions in line with the Company's historical performance. The Company concluded based on this exercise that step two of the impairment analysis was not required and no impairment of vessels existed at December 31, 2011 as the undiscounted projected cash flows</font><font style="font-family:Calibri;font-size:11pt;"> significantly</font><font style="font-family:Calibri;font-size:11pt;"> exceeded their carrying value.</font></p><p> </p><p><font style="font-family:Calibri;font-size:11pt;margin-left:36px;">No impairment loss was identified or recorded for 2011</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">2010 and the Company has not identified any other facts or circumstances that would require the write down of vessel values in the near future.</font><font style="font-family:Calibri;font-size:11pt;"> </font></p><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Accounting for Revenues and Expenses:</font><font style="font-family:Calibri;font-size:11pt;"> Revenues are generated from </font><font style="font-family:Calibri;font-size:11pt;">time </font><font style="font-family:Calibri;font-size:11pt;">charter agreements. </font><font style="font-family:Calibri;font-size:11pt;">Time c</font><font style="font-family:Calibri;font-size:11pt;">harter agreements with the same charterer are accounted for as separate agreements according to the terms and conditions of each agreement. </font><font style="font-family:Calibri;font-size:11pt;">Time-charter r</font><font style="font-family:Calibri;font-size:11pt;">evenues are recorded </font><font style="font-family:Calibri;font-size:11pt;">over the term of the charter as service is provided</font><font style="font-family:Calibri;font-size:11pt;">. Revenues from time charter agreements providing for varying annual rates over their term are accounted for on a straight line basis. Income representing ballast bonus payments</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> in connection with the repositioning of a vessel by the charterer to the vessel owner</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> are recognized in the period earned. Deferred revenue</font><font style="font-family:Calibri;font-size:11pt;">, if any,</font><font style="font-family:Calibri;font-size:11pt;"> includes cash received prior to the balance sheet date for which all criteria for recognition as revenue would not be met, including any deferred revenue resulting from charter agreements providing for varying annual rates, which are accounted for on a straight line basis. Deferred revenue also may include the unamortized balance of </font><font style="font-family:Calibri;font-size:11pt;">a </font><font style="font-family:Calibri;font-size:11pt;">liabilit</font><font style="font-family:Calibri;font-size:11pt;">y</font><font style="font-family:Calibri;font-size:11pt;"> associated with the acquisition of second hand vessels with time charters attached, acquired at values below fair market value at the date the acquisition agreement is consummated. </font><p> </p><p><font style="font-family:Calibri;font-size:11pt;margin-left:36px;">Voyage expenses, primarily consisting of port, canal and bunker expenses that are unique to a particular charter, are paid for by the charterer under time charter arrangements or by the Company under voyage charter arrangements, except for commissions, which are always paid for by the Company, regardless of charter type. All voyage and vessel operating expenses are expensed as incurred, except for commissions. Commissions are deferred over the related voyage charter period to the extent revenue has been deferred since commissions are </font><font style="font-family:Calibri;font-size:11pt;">due</font><font style="font-family:Calibri;font-size:11pt;"> as revenues are earned.</font></p><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Earnings / (</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Loss</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">)</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> per Common Share:</font><font style="font-family:Calibri;font-size:11pt;"> Basic </font><font style="font-family:Calibri;font-size:11pt;">earnings / (</font><font style="font-family:Calibri;font-size:11pt;">loss</font><font style="font-family:Calibri;font-size:11pt;">)</font><font style="font-family:Calibri;font-size:11pt;"> per common share are computed by dividing net</font><font style="font-family:Calibri;font-size:11pt;"> income / (</font><font style="font-family:Calibri;font-size:11pt;">loss</font><font style="font-family:Calibri;font-size:11pt;">)</font><font style="font-family:Calibri;font-size:11pt;"> attributable</font><font style="font-family:Calibri;font-size:11pt;"> to common stockholders by the weighted average number of common sh</font><font style="font-family:Calibri;font-size:11pt;">ares outstanding during the period</font><font style="font-family:Calibri;font-size:11pt;">. </font><font style="font-family:Calibri;font-size:11pt;">Diluted </font><font style="font-family:Calibri;font-size:11pt;">earnings / (</font><font style="font-family:Calibri;font-size:11pt;">loss</font><font style="font-family:Calibri;font-size:11pt;">)</font><font style="font-family:Calibri;font-size:11pt;"> per common </font><font style="font-family:Calibri;font-size:11pt;">share</font><font style="font-family:Calibri;font-size:11pt;"> reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised.</font><font style="font-family:Calibri;font-size:11pt;"> </font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Segmental Reporting:</font><font style="font-family:Calibri;font-size:11pt;"> The Company has determined that it operates under one reportable segment, relating to its operations of the container vessels. The Company reports financial information and evaluates the operations of the segment by charter revenues and not by the length of ship employment for its customers, i.e. spot or time charters. The Company does not use discrete financial information to evaluate the operating results for each such type of charter. Although revenue can be identified for these types of charters, management cannot and does not identify expenses, profitability or other financial information for these charters. As a result, management, including the chief operating decision maker, reviews operating results solely by revenue per day and operating results of the fleet. Furthermore, when the Company charters a vessel to a charterer, the charterer is free to trade the vessel worldwide and, as a result, the disclosure of geographic information is impracticable. </font><p><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;margin-left:36px;"> </font></p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Accounting for Dry-Docking Costs</font><font style="font-family:Calibri;font-size:11pt;">: The Company follow</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> the deferral method of accounting for dry-docking costs whereby actual costs incurred </font><font style="font-family:Calibri;font-size:11pt;">are </font><font style="font-family:Calibri;font-size:11pt;">deferred and amortized on a straight-line basis over the period through the date the next dry-docking </font><font style="font-family:Calibri;font-size:11pt;">will be </font><font style="font-family:Calibri;font-size:11pt;">scheduled to become due. Unamortized dry-docking costs of vessels that are sold </font><font style="font-family:Calibri;font-size:11pt;">are </font><font style="font-family:Calibri;font-size:11pt;">written off and included in the calculation of the resulting gain or loss in the year of the vessel's sale.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Financing Costs</font><font style="font-family:Calibri;font-size:11pt;">: Fees paid to lenders for obtaining new loans or refinancing existing ones are deferred and recorded as a contra to debt. Other fees paid for obtaining loan facilities not used at the balance sheet date are capitalized as deferred financing costs. Fees are amortized to interest and finance costs over the life of the related debt using the effective interest method and, for the fees relating to loan facilities not used at the balance sheet date, according to the loan availability terms. Unamortized fees relating to loans repaid or refinanced as debt extinguishment are expensed as interest and finance costs in the period the repayment or extinguishment is made. Loan commitment fees are charged to expense in the period incurred. </font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Repairs and Maintenance:</font><font style="font-family:Calibri;font-size:11pt;"> All repair and maintenance expenses including underwater inspection expenses are expensed in the </font><font style="font-family:Calibri;font-size:11pt;">period</font><font style="font-family:Calibri;font-size:11pt;"> incurred. Such costs are included in vessel operating expenses in the accompanying consolidated statements of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;">.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Share Based Payment:</font><font style="font-family:Calibri;font-size:11pt;"> ASC 718 “Compensation – Stock Compensation”, requires the Company to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost is recognized over the period during which an employee is required to provide service in exchange for the award—the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Employee share purchase plans will not result in recognition of compensation cost if certain conditions are met. The Company initially measure</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> the cost of employee services received in exchange for an award or liability instrument based on its current fair value; the fair value of that award or liability instrument is remeasured subsequently at each reporting date through the settlement date. Changes in fair value during the requisite service period are recognized as compensation cost over that period with the exception of awards granted in the form of restricted shares which are measured at their grant date fair va</font><font style="font-family:Calibri;font-size:11pt;">lue and are not subsequently re-</font><font style="font-family:Calibri;font-size:11pt;">measured. The grant-date fair value of employee share options and similar instruments are estimated using option-pricing models adjusted for the unique characteristics of those instruments (unless observable market prices for the same or similar instruments are available). If an equity award is modified after the grant date, incremental compensation cost </font><font style="font-family:Calibri;font-size:11pt;">is</font><font style="font-family:Calibri;font-size:11pt;"> recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification. </font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Variable Interest Entities:</font><font style="font-family:Calibri;font-size:11pt;"> ASC 81</font><font style="font-family:Calibri;font-size:11pt;">0-10-50 “Consolidation of Variable Interest Entities”, addresses the consolidation of business enterprises (variable interest entities) to which the usual condition (ownership of a majority voting interest) of consolidation does not apply. The guidance focuses on financial interests that indicate control. It concludes that in the absence of clear control through voting interests, a company's exposure (variable interest) to the economic risks and potential rewards from the variable interest entity's assets and activities are the best evidence of control. Variable interests are rights and obligations that convey economic gains or losses from changes in the value of the variable interest entity's assets and liabilities. The Company evaluates financial instruments, service contracts, and other arrangements to determine if any variable interests relating to an entity exist, as the primary beneficiary would be required to include assets, liabilities, and the results of operations of the variable interest entity in its financial statements. </font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">The Company's evaluation did not result in an identification of variable interest entities as of December 31, 2011 and 2010.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Concentration of Credit Risk:</font><font style="font-family:Calibri;font-size:11pt;"> Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and trade accounts receivable. The Company places its temporary cash investments, consisting mostly of deposits, with </font><font style="font-family:Calibri;font-size:11pt;">various</font><font style="font-family:Calibri;font-size:11pt;"> qualified financial institutions</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company's investment strategy. The Company limits its credit risk with accounts receivable by performing ongoing credit evaluations of its customers' financial condition and generally does not require collateral for its accounts receivable and does not have any agreements to mitigate credit risk.</font></li></ul><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><p style='margin-top:12pt; margin-bottom:10pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">Recent</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">Accounting</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">P</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">ronouncements</font></p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">In June 2011, the FASB issued ASU 2011-05, Comprehensive Income, Presentation of Comprehensive Income (Topic 220), which revises the manner in which entities present comprehensive income in their financial statements. Current U.S. GAAP allows reporting entities three alternatives for presenting other comprehensive income and its components in financial statements. One of those presentation options is to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. This Update eliminates that option. In addition, current U.S. GAAP does not require consecutive presentation of the statement of net income and other comprehensive income. Finally, current U.S. GAAP does not require an entity to present reclassification adjustments on the face of the financial statements from other comprehensive income to net income, which is required by the guidance in this Update. These changes apply to both annual and interim financial statements. These improvements will help financial statement users better understand the causes of an entity's change in financial position and results of operations. The new guidance removes the presentation options in ASC 220 and requires entities to report components of comprehensive income in either (i) a continuous statement of comprehensive income or (ii) two separate but consecutive statements. Under the two-statement approach, an entity is required to present components of net income and total net income in the statement of net income. The statement of other comprehensive income should immediately follow the statement of net income and include the components of other comprehensive income and a total for other comprehensive income, along with a total for comprehensive income. The amendments in this Update do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The amendments in this Update should be applied retrospectively and they are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early adoption is permitted, because compliance with the amendments is already permitted. The amendments do not require any transition disclosures. The amendments in this Update </font><font style="font-family:Calibri;font-size:11pt;">were</font><font style="font-family:Calibri;font-size:11pt;"> adopted by the Company</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">as of</font><font style="font-family:Calibri;font-size:11pt;"> June 30, 2011</font><font style="font-family:Calibri;font-size:11pt;">.</font></p>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">3</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">.</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">T</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">ransactions with </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">a Related Party</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;margin-left:0px;">Diana Shipping </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Services</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> S.A. (“DS</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">S</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">”</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;"> or the “Manager”</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">):</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">DSS</font><font style="font-family:Calibri;font-size:11pt;">, a wholly owned subsidiary o</font><font style="font-family:Calibri;font-size:11pt;">f DSI</font><font style="font-family:Calibri;font-size:11pt;">, </font><font style="font-family:Calibri;font-size:11pt;">a</font><font style="font-family:Calibri;font-size:11pt;"> Company's </font><font style="font-family:Calibri;font-size:11pt;">major</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">shareholder</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> provide</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> (i)</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">administrative services under an Administrative Service</font><font style="font-family:Calibri;font-size:11pt;">s Agreement</font><font style="font-family:Calibri;font-size:11pt;">, for a monthly fee of $10,000</font><font style="font-family:Calibri;font-size:11pt;">; (ii) brokerage services</font><font style="font-family:Calibri;font-size:11pt;"> pursuant to a Broker Services Agreement </font><font style="font-family:Calibri;font-size:11pt;">that </font><font style="font-family:Calibri;font-size:11pt;">DSS has entered into with Diana Enterprises Inc.</font><font style="font-family:Calibri;font-size:11pt;"> (“Diana Enterprises”),</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">a related party controlled by the Company's Chief Executive Officer and Chairman Mr. Symeon Palios</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">for annual fees of $1,040,000</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">until </font><font style="font-family:Calibri;font-size:11pt;">the completion of the public offering on </font><font style="font-family:Calibri;font-size:11pt;">June 15, 2011 </font><font style="font-family:Calibri;font-size:11pt;">(Note 8) </font><font style="font-family:Calibri;font-size:11pt;">and </font><font style="font-family:Calibri;font-size:11pt;">$1,300,000 </font><font style="font-family:Calibri;font-size:11pt;">thereafter</font><font style="font-family:Calibri;font-size:11pt;">;</font><font style="font-family:Calibri;font-size:11pt;"> (iii) </font><font style="font-family:Calibri;font-size:11pt;">commercial and technical services pursuant to </font><font style="font-family:Calibri;font-size:11pt;">Vessel Management Agreements</font><font style="font-family:Calibri;font-size:11pt;">, signed between each shipowning company and DSS,</font><font style="font-family:Calibri;font-size:11pt;"> under which </font><font style="font-family:Calibri;font-size:11pt;">the Company </font><font style="font-family:Calibri;font-size:11pt;">pays </font><font style="font-family:Calibri;font-size:11pt;">a commission of 1% of the gross charterhire and freight earned by </font><font style="font-family:Calibri;font-size:11pt;">each </font><font style="font-family:Calibri;font-size:11pt;">vessel and a technical management fee of $15,000 per vessel per month for employed vessels and $20,000 per vessel per month for laid-up vessels.</font><font style="font-family:Calibri;font-size:11pt;"> </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">For </font><font style="font-family:Calibri;font-size:11pt;">2011</font><font style="font-family:Calibri;font-size:11pt;"> and for the period from January 7 (inception date) to December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> 2010</font><font style="font-family:Calibri;font-size:11pt;">, </font><font style="font-family:Calibri;font-size:11pt;">DSS </font><font style="font-family:Calibri;font-size:11pt;">charged the C</font><font style="font-family:Calibri;font-size:11pt;">ompany</font><font style="font-family:Calibri;font-size:11pt;"> the following amounts for (i) </font><font style="font-family:Calibri;font-size:11pt;">management fees</font><font style="font-family:Calibri;font-size:11pt;"> and commissions</font><font style="font-family:Calibri;font-size:11pt;"> under the Vess</font><font style="font-family:Calibri;font-size:11pt;">el Management Agreements, (ii) </font><font style="font-family:Calibri;font-size:11pt;">administrative </font><font style="font-family:Calibri;font-size:11pt;">fees</font><font style="font-family:Calibri;font-size:11pt;"> under the Administrative Services Agreement and (iii) brokerage </font><font style="font-family:Calibri;font-size:11pt;">fees</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">attributable to Diana Enterprises </font><font style="font-family:Calibri;font-size:11pt;">under the Broker Services Agreement be</font><font style="font-family:Calibri;font-size:11pt;">tween DSS and Diana Enterprises:</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 51px"><td style="width: 313px; text-align:left;border-color:#000000;min-width:313px;"> </td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 180px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:180px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">For the year ended December 31, 2011</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 180px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:180px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">For the period from January 7, 2010 (inception date) to December 31, 2010</font></td></tr><tr style="height: 17px"><td style="width: 313px; text-align:left;border-color:#000000;min-width:313px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Management fees</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">$</font></td><td style="width: 180px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:180px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> 757,500</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">$</font></td><td style="width: 180px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:180px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> 203,000</font></td></tr><tr style="height: 17px"><td style="width: 313px; text-align:left;border-color:#000000;min-width:313px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Commissions</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 180px; text-align:right;border-color:#000000;min-width:180px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> 269,960</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 180px; text-align:right;border-color:#000000;min-width:180px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> 57,347</font></td></tr><tr style="height: 17px"><td style="width: 313px; text-align:left;border-color:#000000;min-width:313px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Administrative fees</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 180px; text-align:right;border-color:#000000;min-width:180px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> 120,000</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 180px; text-align:right;border-color:#000000;min-width:180px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> 88,000</font></td></tr><tr style="height: 17px"><td style="width: 313px; text-align:left;border-color:#000000;min-width:313px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Brokerage fees</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 180px; text-align:right;border-color:#000000;min-width:180px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> 1,181,556</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 180px; text-align:right;border-color:#000000;min-width:180px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> 606,667</font></td></tr></table></div><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><p style='margin-top:12pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">From the total m</font><font style="font-family:Calibri;font-size:11pt;">anagement fees</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">for</font><font style="font-family:Calibri;font-size:11pt;"> 2011</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">$650,000</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">are </font><font style="font-family:Calibri;font-size:11pt;">separately presented </font><font style="font-family:Calibri;font-size:11pt;">in the </font><font style="font-family:Calibri;font-size:11pt;">related </font><font style="font-family:Calibri;font-size:11pt;">accompanying consolidated statement of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">$107,500</font><font style="font-family:Calibri;font-size:11pt;"> are included </font><font style="font-family:Calibri;font-size:11pt;">in Vessels</font><font style="font-family:Calibri;font-size:11pt;"> and in Advances for vessel acquisitions and other vessel costs</font><font style="font-family:Calibri;font-size:11pt;"> in the accompanying consolidated balance sheet</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">of</font><font style="font-family:Calibri;font-size:11pt;"> December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> 2011</font><font style="font-family:Calibri;font-size:11pt;">.</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">M</font><font style="font-family:Calibri;font-size:11pt;">anagement</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">fees</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">for the period from January 7, 2010 (inception date) to December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> 2010 are separately presented </font><font style="font-family:Calibri;font-size:11pt;">in the </font><font style="font-family:Calibri;font-size:11pt;">related </font><font style="font-family:Calibri;font-size:11pt;">accompanying consolidated statement of </font><font style="font-family:Calibri;font-size:11pt;">operations. </font><font style="font-family:Calibri;font-size:11pt;">Commissions are included in Voyage expenses</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">in the accompanying consolidated statement</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;">. </font><font style="font-family:Calibri;font-size:11pt;">Administrative and brokerage </font><font style="font-family:Calibri;font-size:11pt;">fees</font><font style="font-family:Calibri;font-size:11pt;"> are included in General and administrative expenses in the accompanying consolidated statements of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;">. </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">As at December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> 2011</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> an amount of $263,438 was due to DSS, for payments made by DSS on behalf of the Company, and is included in Due to related parties in the accompanying consolidated balance sheet. As at December 31, 2010 an amount of $397,853 was due from DSS, representing Company's payments in excess of DSS charges, and is included in Due from related party in the accompanying 2010 consolidated balance sheet.</font></p>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">4.       Advances for Vessel Acquisition</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">s</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> and Other Vessel Costs</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">On </font><font style="font-family:Calibri;font-size:11pt;">December</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">19, 2011</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">Rongerik and Utirik, </font><font style="font-family:Calibri;font-size:11pt;">entered into </font><font style="font-family:Calibri;font-size:11pt;">two</font><font style="font-family:Calibri;font-size:11pt;"> memorand</font><font style="font-family:Calibri;font-size:11pt;">a</font><font style="font-family:Calibri;font-size:11pt;"> of agreement with a</font><font style="font-family:Calibri;font-size:11pt;">n unrelated</font><font style="font-family:Calibri;font-size:11pt;"> third party company, to acquire </font><font style="font-family:Calibri;font-size:11pt;">the 3,739 </font><font style="font-family:Calibri;font-size:11pt;">TEU capacity </font><font style="font-family:Calibri;font-size:11pt;">container vessels</font><font style="font-family:Calibri;font-size:11pt;"> m/v</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Cap San Marco</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">m/v </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Cap San Raphael</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;">, respectively, </font><font style="font-family:Calibri;font-size:11pt;">for the purchase price of </font><font style="font-family:Calibri;font-size:11pt;">$33</font><font style="font-family:Calibri;font-size:11pt;">.0 million,</font><font style="font-family:Calibri;font-size:11pt;"> each</font><font style="font-family:Calibri;font-size:11pt;">. </font><font style="font-family:Calibri;font-size:11pt;">On </font><font style="font-family:Calibri;font-size:11pt;">December 20</font><font style="font-family:Calibri;font-size:11pt;">, 201</font><font style="font-family:Calibri;font-size:11pt;">1</font><font style="font-family:Calibri;font-size:11pt;">, the Company paid </font><font style="font-family:Calibri;font-size:11pt;">a 10% advance for each v</font><font style="font-family:Calibri;font-size:11pt;">essel, amounting to $3</font><font style="font-family:Calibri;font-size:11pt;">.</font><font style="font-family:Calibri;font-size:11pt;">3</font><font style="font-family:Calibri;font-size:11pt;"> million, </font><font style="font-family:Calibri;font-size:11pt;">each.</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">The balance of</font><font style="font-family:Calibri;font-size:11pt;"> the purchase price was paid in February 2012, when the vessels were </font><font style="font-family:Calibri;font-size:11pt;">delivered</font><font style="font-family:Calibri;font-size:11pt;"> (Note</font><font style="font-family:Calibri;font-size:11pt;">s 7(c) </font><font style="font-family:Calibri;font-size:11pt;">and</font><font style="font-family:Calibri;font-size:11pt;"> 14</font><font style="font-family:Calibri;font-size:11pt;">(b)</font><font style="font-family:Calibri;font-size:11pt;">)</font><font style="font-family:Calibri;font-size:11pt;">.</font><font style="font-family:Calibri;font-size:11pt;"> </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">Each of the two vessels </font><font style="font-family:Calibri;font-size:11pt;">is</font><font style="font-family:Calibri;font-size:11pt;"> chartered back to the </font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;">eller for a period of about 36 months at $22,750 net per day per vessel for the first twelve months, $22,850 net per day per vessel for the second twelve months and for $23,250 net, per day per vessel for the final twelve months.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">As at December 31, 2010, there were no advances for vessel acquisitions. </font><font style="font-family:Calibri;font-size:11pt;">As at December 31, 2011</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">the a</font><font style="font-family:Calibri;font-size:11pt;">mount presented in the </font><font style="font-family:Calibri;font-size:11pt;">accompanying </font><font style="font-family:Calibri;font-size:11pt;">consolidated balance sheet</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">is</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">analyzed as follows:</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 385px; text-align:left;border-color:#000000;min-width:385px;"> </td><td style="width: 7px; text-align:left;border-color:#000000;min-width:7px;"> </td><td style="width: 96px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:96px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2011</font></td></tr><tr style="height: 17px"><td style="width: 385px; text-align:left;border-color:#000000;min-width:385px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Advances for vessel acquisitions </font></td><td style="width: 7px; text-align:left;border-color:#000000;min-width:7px;"> </td><td style="width: 96px; text-align:right;border-color:#000000;min-width:96px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 6,600,000</font></td></tr><tr style="height: 17px"><td style="width: 385px; text-align:left;border-color:#000000;min-width:385px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Other related costs </font></td><td style="width: 7px; text-align:left;border-color:#000000;min-width:7px;"> </td><td style="width: 96px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:96px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 34,239</font></td></tr><tr style="height: 18px"><td style="width: 385px; text-align:left;border-color:#000000;min-width:385px;"> </td><td style="width: 7px; text-align:left;border-color:#000000;min-width:7px;"> </td><td style="width: 96px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:96px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 6,634,239</font></td></tr></table></div>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">5.       Vessels</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">On April 13, 2011, Ralik, Mili and Ebon, each </font><font style="font-family:Calibri;font-size:11pt;">entered into </font><font style="font-family:Calibri;font-size:11pt;">a Memorandum</font><font style="font-family:Calibri;font-size:11pt;"> of Agreement </font><font style="font-family:Calibri;font-size:11pt;">with </font><font style="font-family:Calibri;font-size:11pt;">a</font><font style="font-family:Calibri;font-size:11pt;">n unrelated</font><font style="font-family:Calibri;font-size:11pt;"> third party company, to acquire </font><font style="font-family:Calibri;font-size:11pt;">one </font><font style="font-family:Calibri;font-size:11pt;">Panamax container vessel, the MV “Maersk </font><font style="font-family:Calibri;font-size:11pt;">Madrid</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;">, the</font><font style="font-family:Calibri;font-size:11pt;"> MV “Maersk Malacca” and MV “Maersk </font><font style="font-family:Calibri;font-size:11pt;">Merlion</font><font style="font-family:Calibri;font-size:11pt;">”, respectively</font><font style="font-family:Calibri;font-size:11pt;">, for t</font><font style="font-family:Calibri;font-size:11pt;">he purchase price </font><font style="font-family:Calibri;font-size:11pt;">of </font><font style="font-family:Calibri;font-size:11pt;">$22.5 million, </font><font style="font-family:Calibri;font-size:11pt;">$</font><font style="font-family:Calibri;font-size:11pt;">24.0</font><font style="font-family:Calibri;font-size:11pt;"> million </font><font style="font-family:Calibri;font-size:11pt;">and $24.0 million, respectively </font><font style="font-family:Calibri;font-size:11pt;">(Note 1)</font><font style="font-family:Calibri;font-size:11pt;">. </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">On April 18, 2011, the Company paid an aggregate amount of $7.05 million, being 10% of the vessels' </font><font style="font-family:Calibri;font-size:11pt;">purchase </font><font style="font-family:Calibri;font-size:11pt;">price. </font><font style="font-family:Calibri;font-size:11pt;">On June 14, June 17 and June 22, 2011, Ralik</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> Ebon and Mili, took delivery of </font><font style="font-family:Calibri;font-size:11pt;">the respective vessels</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">and paid the balance of the </font><font style="font-family:Calibri;font-size:11pt;">aggregate </font><font style="font-family:Calibri;font-size:11pt;">acquisition cost </font><font style="font-family:Calibri;font-size:11pt;">amounting to </font><font style="font-family:Calibri;font-size:11pt;">$6</font><font style="font-family:Calibri;font-size:11pt;">3.45</font><font style="font-family:Calibri;font-size:11pt;"> million (excluding pre-delivery and other costs).</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">The total cost of the vessels amounted to </font><font style="font-family:Calibri;font-size:11pt;">$72,687,029</font><font style="font-family:Calibri;font-size:11pt;"> and includes </font><font style="font-family:Calibri;font-size:11pt;">$2,187,029</font><font style="font-family:Calibri;font-size:11pt;"> of capitalized costs consisting of pre-delivery expenses</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">and </font><font style="font-family:Calibri;font-size:11pt;">expenditures </font><font style="font-family:Calibri;font-size:11pt;">incurred to improve the </font><font style="font-family:Calibri;font-size:11pt;">efficiency </font><font style="font-family:Calibri;font-size:11pt;">and </font><font style="font-family:Calibri;font-size:11pt;">safety of the vessels</font><font style="font-family:Calibri;font-size:11pt;">.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">Each of the three vessels is chartered to A.P. Møller-Maersk A/S for a period of minimum twenty-four (24) months plus or minus forty-five (45) days at a daily rate of $21,450</font><font style="font-family:Calibri;font-size:11pt;"> gross</font><font style="font-family:Calibri;font-size:11pt;">. The charterer has the option to employ each vessel for a further twelve (12) month period plus or minus forty-five (45) days, at a daily rate of $25,000 </font><font style="font-family:Calibri;font-size:11pt;">gross,</font><font style="font-family:Calibri;font-size:11pt;"> starting twenty-four (24) months after delivery of the vessel to the charterer. </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The amounts in the accompanying consolidated balance sheets are analyzed as follows:</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 34px"><td style="width: 278px; text-align:left;border-color:#000000;min-width:278px;"> </td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:131px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">Vessels' Cost</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:131px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">Accumulated Depreciation</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:131px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">Net Book Value</font></td></tr><tr style="height: 6px"><td style="width: 278px; text-align:left;border-color:#000000;min-width:278px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> </font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:131px;"> </td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:131px;"> </td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:131px;"> </td></tr><tr style="height: 20px"><td style="width: 278px; text-align:left;border-color:#000000;min-width:278px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Balance, December 31, 2010</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">$</font></td><td style="width: 131px; text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 93,531,186</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 131px; text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (1,453,877)</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 131px; text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 92,077,309</font></td></tr><tr style="height: 20px"><td style="width: 278px; text-align:left;border-color:#000000;min-width:278px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">- Acquisitions and other vessels' costs</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 72,687,029</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> -</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 72,687,029</font></td></tr><tr style="height: 17px"><td style="width: 278px; text-align:left;border-color:#000000;min-width:278px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">- Depreciation for the period</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> -</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (5,937,591)</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (5,937,591)</font></td></tr><tr style="height: 21px"><td style="width: 278px; text-align:left;border-color:#000000;min-width:278px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Balance, December 31, 2011</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">$</font></td><td style="width: 131px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 166,218,215</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">$</font></td><td style="width: 131px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (7,391,468)</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">$</font></td><td style="width: 131px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 158,826,747</font></td></tr></table></div><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><p style='margin-top:12pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">As </font><font style="font-family:Calibri;font-size:11pt;">at</font><font style="font-family:Calibri;font-size:11pt;"> December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> 2011</font><font style="font-family:Calibri;font-size:11pt;">, two of the Company</font><font style="font-family:Calibri;font-size:11pt;">'s</font><font style="font-family:Calibri;font-size:11pt;"> vessels (</font><font style="font-family:Calibri;font-size:11pt;">m/v “</font><font style="font-family:Calibri;font-size:11pt;">Sagitta</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">m/v “</font><font style="font-family:Calibri;font-size:11pt;">Centaurus</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;">) having a total carrying value of $89.1 </font><font style="font-family:Calibri;font-size:11pt;">million </font><font style="font-family:Calibri;font-size:11pt;">were provided as collateral to secure the terms and conditions of the revolving credit facility with the Royal Bank of Scotland</font><font style="font-family:Calibri;font-size:11pt;"> plc</font><font style="font-family:Calibri;font-size:11pt;">, discussed in Note 6.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">As </font><font style="font-family:Calibri;font-size:11pt;">at</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">2011</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">all</font><font style="font-family:Calibri;font-size:11pt;"> vessels were operating under time charter agreements.</font><font style="font-family:Calibri;font-size:11pt;"> </font></p>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">6.       Long-Term Debt, Current and Non-C</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">urrent</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:6pt; margin-bottom:12pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The amount</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> of long-term debt shown in the accompanying consolidated balance sheet</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">are</font><font style="font-family:Calibri;font-size:11pt;"> analyzed as follows:</font></p><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 20px"><td style="width: 411px; text-align:left;border-color:#000000;min-width:411px;"> </td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:131px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2011</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:131px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2010</font></td></tr><tr style="height: 20px"><td style="width: 411px; text-align:left;border-color:#000000;min-width:411px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">DnB NOR Bank ASA</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">$</font></td><td style="width: 131px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> -</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 131px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 19,670,000</font></td></tr><tr style="height: 20px"><td style="width: 411px; text-align:left;border-color:#000000;min-width:411px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Less related deferred financing costs </font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> -</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (180,367)</font></td></tr><tr style="height: 21px"><td style="width: 411px; text-align:left;border-color:#000000;min-width:411px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> Total </font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">$</font></td><td style="width: 131px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> -</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 131px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 19,489,633</font></td></tr><tr style="height: 8px"><td style="width: 411px; text-align:left;border-color:#000000;min-width:411px;"> </td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-top-style:solid;border-top-width:2px;text-align:right;border-color:#000000;min-width:131px;"> </td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 131px; border-top-style:solid;border-top-width:2px;text-align:right;border-color:#000000;min-width:131px;"> </td></tr><tr style="height: 35px"><td style="width: 411px; text-align:left;border-color:#000000;min-width:411px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Current portion of long term debt</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">$</font></td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> -</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 131px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (1,361,538)</font></td></tr><tr style="height: 36px"><td style="width: 411px; text-align:left;border-color:#000000;min-width:411px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;"> Total </font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">$</font></td><td style="width: 131px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> -</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 131px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:131px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 18,128,095</font></td></tr></table></div><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><p style='margin-top:12pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;margin-left:0px;">DnB NOR Bank ASA:</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">On July 7, 2010, Likiep and Orangina</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> entered into a loan agreement with DnB NOR Bank ASA to finance part of the acquisition cost of the vessels </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Sagitta</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Centau</font><font style="font-family:Calibri;font-size:11pt;">rus</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;">, for an amount of up to $40.</font><font style="font-family:Calibri;font-size:11pt;">0</font><font style="font-family:Calibri;font-size:11pt;"> million</font><font style="font-family:Calibri;font-size:11pt;">. An arrangement fee of $400,000 was paid on signing the facility agreement. </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">On July 9, 2010, the Company, through Likiep and Orangina, drew down the first two advances of $10.0 million each to finance part of the acquisition cost of the vessels </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Sagitta</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Centaurus</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;">. The Company drew down the remainder of the available facility amounting to $20.0 million on February 4, 2011. </font><font style="font-family:Calibri;font-size:11pt;">The loan </font><font style="font-family:Calibri;font-size:11pt;">was </font><font style="font-family:Calibri;font-size:11pt;">repayable in 24 quarterly insta</font><font style="font-family:Calibri;font-size:11pt;">l</font><font style="font-family:Calibri;font-size:11pt;">lments of $165,000 for each advance and a balloon of $6,040,000 payable together with the last instal</font><font style="font-family:Calibri;font-size:11pt;">l</font><font style="font-family:Calibri;font-size:11pt;">ment. The loan </font><font style="font-family:Calibri;font-size:11pt;">bore </font><font style="font-family:Calibri;font-size:11pt;">interest at LIBOR plus a margin of 2.40% per annum. </font><font style="font-family:Calibri;font-size:11pt;">The Company paid commitment fees </font><font style="font-family:Calibri;font-size:11pt;">of 0.96% per annum</font><font style="font-family:Calibri;font-size:11pt;"> on the undrawn portion of the loan, which for the period from January 1, 2011 through February 4, 2011 (date of drawdown of the remaining available loan balance) amounted to $18,133.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The loan </font><font style="font-family:Calibri;font-size:11pt;">was </font><font style="font-family:Calibri;font-size:11pt;">secured by a first preferred ship mortgage on the vessels, general assignments, charter assignments, operating account ass</font><font style="font-family:Calibri;font-size:11pt;">ignments, a corporate guarantee and</font><font style="font-family:Calibri;font-size:11pt;"> manager's undertakings. The lender </font><font style="font-family:Calibri;font-size:11pt;">could </font><font style="font-family:Calibri;font-size:11pt;">also require additional security </font><font style="font-family:Calibri;font-size:11pt;">if</font><font style="font-family:Calibri;font-size:11pt;"> the</font><font style="font-family:Calibri;font-size:11pt;"> market values </font><font style="font-family:Calibri;font-size:11pt;">of the mortgaged ships </font><font style="font-family:Calibri;font-size:11pt;">did</font><font style="font-family:Calibri;font-size:11pt;"> not cover </font><font style="font-family:Calibri;font-size:11pt;">125% of the aggregate outstanding balance of </font><font style="font-family:Calibri;font-size:11pt;">the loan. The loan also included</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">restrictions as to changes in management</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> ownership, additional indebtedness, a consolidated leverage ratio of not more than 70%, </font><font style="font-family:Calibri;font-size:11pt;">and </font><font style="font-family:Calibri;font-size:11pt;">minimum liquidity of 4% of the funded debt</font><font style="font-family:Calibri;font-size:11pt;"> (measured semi-annually and at the end of each calendar year)</font><font style="font-family:Calibri;font-size:11pt;"> which as at December 31, 2010 is presented as Restricted cash in the accompanying consolidated balance sheets</font><font style="font-family:Calibri;font-size:11pt;">.</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">Furthermore, the Company </font><font style="font-family:Calibri;font-size:11pt;">was </font><font style="font-family:Calibri;font-size:11pt;">not permitted to pay any dividends that would result to an event of default.</font><font style="font-family:Calibri;font-size:11pt;"> </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The loan was refinanced with </font><font style="font-family:Calibri;font-size:11pt;">a</font><font style="font-family:Calibri;font-size:11pt;"> loan agreement dated </font><font style="font-family:Calibri;font-size:11pt;">May 4, 2011</font><font style="font-family:Calibri;font-size:11pt;">, between </font><font style="font-family:Calibri;font-size:11pt;">DnB NOR </font><font style="font-family:Calibri;font-size:11pt;">Bank </font><font style="font-family:Calibri;font-size:11pt;">ASA </font><font style="font-family:Calibri;font-size:11pt;">and </font><font style="font-family:Calibri;font-size:11pt;">Likiep, Orangina, Mili, Ralik and Ebon</font><font style="font-family:Calibri;font-size:11pt;">, </font><font style="font-family:Calibri;font-size:11pt;">for a maximum of $85.0 million</font><font style="font-family:Calibri;font-size:11pt;">. The purpose of the new </font><font style="font-family:Calibri;font-size:11pt;">loan agreement </font><font style="font-family:Calibri;font-size:11pt;">was </font><font style="font-family:Calibri;font-size:11pt;">to refinance the outstanding balance of the lo</font><font style="font-family:Calibri;font-size:11pt;">an facility dated July 7, 2010, </font><font style="font-family:Calibri;font-size:11pt;">to partly finance the cost of the vessels </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Maersk Madrid</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;">, </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Maersk Merlion</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Maersk Malacca</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">(Note 5) </font><font style="font-family:Calibri;font-size:11pt;">and for general working capital purposes. The loan was available in two tranches. Tranche 1 would be the lesser of 65% of the market value of the vessels “Sagitta” and “Centaurus” and $65.0 million and tranche 2 would be the lesser of 35% of the market value of</font><font style="font-family:Calibri;font-size:11pt;"> each of</font><font style="font-family:Calibri;font-size:11pt;"> the </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Maersk Madrid</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;">, </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Maersk Merlion</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">“</font><font style="font-family:Calibri;font-size:11pt;">Maersk Malacca</font><font style="font-family:Calibri;font-size:11pt;">”</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">and $20.0 million. Tranche 1 was available for drawing in a single drawdown and tranche 2 in three drawdowns until July 31, 2011. Tranche 1 would be repaid in 24 consecutive quarterly installments of</font><font style="font-family:Calibri;font-size:11pt;"> approximately</font><font style="font-family:Calibri;font-size:11pt;"> $1.1 million each, plus a balloon installment of $37.6 million </font><font style="font-family:Calibri;font-size:11pt;">that would be</font><font style="font-family:Calibri;font-size:11pt;"> paid together with the last installment. Tranche 2 would be repaid in 8 consecutive quarterly installments of $2.5 million each. The loan bore interest at LIBOR plus a margin of 2.6% per annum. The Company paid $382,500 of arrangement fees on signing of the agreement and on May 6, 2011, the Company drew down Tranche 1 of $65.0 million, with which it repaid the then-outstanding balance of indebtedness under </font><font style="font-family:Calibri;font-size:11pt;">the </font><font style="font-family:Calibri;font-size:11pt;">loan facility </font><font style="font-family:Calibri;font-size:11pt;">dated </font><font style="font-family:Calibri;font-size:11pt;">July 7, 2010</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> amounting t</font><font style="font-family:Calibri;font-size:11pt;">o $38.7 million plus interest. </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The loan was secured with a first priority mortgage on each of the vessels, a first priority assignment of the time charters, a first priority assignment of the earnings, insurances and requisition compensation of the vessels, a first priority assignment of any charter, or other employment contracts exceeding 12 months, and an unconditional, irrevocable guarantee from </font><font style="font-family:Calibri;font-size:11pt;">DCI</font><font style="font-family:Calibri;font-size:11pt;">. The lender also required the market values of the mortgaged ships to cover 125% of the aggregate outstanding balance of the loan. The loan also included restrictions as to changes in management, ownership, additional indebtedness, a consolidated leverage ratio of not more than 70% and minimum liquidity of 4% of the funded debt. On June 20, 2011, the Company </font><font style="font-family:Calibri;font-size:11pt;">p</font><font style="font-family:Calibri;font-size:11pt;">repaid in full the outstanding balance under the loan</font><font style="font-family:Calibri;font-size:11pt;"> with part of the proceeds of the follow-on offering in June 2011 (Note 8(c))</font><font style="font-family:Calibri;font-size:11pt;">, amounting to $65.0 million and th</font><font style="font-family:Calibri;font-size:11pt;">e loan agreement was terminated. </font><font style="font-family:Calibri;font-size:11pt;">As a result of the extinguishment of both loans, t</font><font style="font-family:Calibri;font-size:11pt;">he unamortized balance of </font><font style="font-family:Calibri;font-size:11pt;">the related </font><font style="font-family:Calibri;font-size:11pt;">finance costs</font><font style="font-family:Calibri;font-size:11pt;">, totaling to $641,654 was</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">written</font><font style="font-family:Calibri;font-size:11pt;">-</font><font style="font-family:Calibri;font-size:11pt;">off to Interest and finance costs, in the accompanying consolidated statement of operations</font><font style="font-family:Calibri;font-size:11pt;"> for the year ended December 31, 2011</font><font style="font-family:Calibri;font-size:11pt;">. </font><font style="font-family:Calibri;font-size:11pt;">The weighted average interest rate of the loan during 2011 and 2010 was 2.7</font><font style="font-family:Calibri;font-size:11pt;">7</font><font style="font-family:Calibri;font-size:11pt;">% </font><font style="font-family:Calibri;font-size:11pt;">(including the original and the refinanced loans) </font><font style="font-family:Calibri;font-size:11pt;">and </font><font style="font-family:Calibri;font-size:11pt;">2</font><font style="font-family:Calibri;font-size:11pt;">.82%, respectively.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;margin-left:0px;">The Royal Bank of Scotland plc.:</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">On December 16, 2011, the Company entered into a revolving credit facility with the Royal Bank of Scotland plc (“RBS”), where t</font><font style="font-family:Calibri;font-size:11pt;">he lenders have agreed to make available to </font><font style="font-family:Calibri;font-size:11pt;">it</font><font style="font-family:Calibri;font-size:11pt;"> a revolving credit facility of up to </font><font style="font-family:Calibri;font-size:11pt;">$100.0 million (which may be increased to $150.0 million subject to further syndication) </font><font style="font-family:Calibri;font-size:11pt;">in order</font><font style="font-family:Calibri;font-size:11pt;"> to refinance </font><font style="font-family:Calibri;font-size:11pt;">part of the acquisition cost of the vessels</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">m/v </font><font style="font-family:Calibri;font-size:11pt;">“Sagitta” and </font><font style="font-family:Calibri;font-size:11pt;">m/v </font><font style="font-family:Calibri;font-size:11pt;">“Centaurus” and </font><font style="font-family:Calibri;font-size:11pt;">finance </font><font style="font-family:Calibri;font-size:11pt;">part of the</font><font style="font-family:Calibri;font-size:11pt;"> acquisition </font><font style="font-family:Calibri;font-size:11pt;">costs </font><font style="font-family:Calibri;font-size:11pt;">of additional</font><font style="font-family:Calibri;font-size:11pt;"> containerships (“</font><font style="font-family:Calibri;font-size:11pt;">Additional Ship</font><font style="font-family:Calibri;font-size:11pt;">s”)</font><font style="font-family:Calibri;font-size:11pt;">.</font><font style="font-family:Calibri;font-size:11pt;"> </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The maximum amount available for drawing </font><font style="font-family:Calibri;font-size:11pt;">(the “Available Facility Limit”) is</font><font style="font-family:Calibri;font-size:11pt;"> subject to limits relating to the market value of </font><font style="font-family:Calibri;font-size:11pt;">the m/v</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">“Sagitta” and</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">the </font><font style="font-family:Calibri;font-size:11pt;">“Centaurus”</font><font style="font-family:Calibri;font-size:11pt;"> and the market value or contract price and the age of the Additional Ships (“Vessel Limits”)</font><font style="font-family:Calibri;font-size:11pt;"> combined with </font><font style="font-family:Calibri;font-size:11pt;">limits relating with </font><font style="font-family:Calibri;font-size:11pt;">the average age of all the vessels under mortgage. The </font><font style="font-family:Calibri;font-size:11pt;">facility</font><font style="font-family:Calibri;font-size:11pt;"> will be available for five years after the First Availability Date, being January 17, 2012</font><font style="font-family:Calibri;font-size:11pt;">, with the Available Facility Limit assessed at each draw down date and on a yearly basis, as well as, at the date in which the age of any Additional Ship exceeds the 20 years. </font><font style="font-family:Calibri;font-size:11pt;">In the event that the </font><font style="font-family:Calibri;font-size:11pt;">amounts</font><font style="font-family:Calibri;font-size:11pt;"> outstanding at that time exceed the revised Available Facility Limit the </font><font style="font-family:Calibri;font-size:11pt;">Company</font><font style="font-family:Calibri;font-size:11pt;"> shall repay such part of the Loan that exceeds the Available Facility Limit.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The </font><font style="font-family:Calibri;font-size:11pt;">credit facility</font><font style="font-family:Calibri;font-size:11pt;"> bear</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> interest at Libor plus a margin of 2.75% and </font><font style="font-family:Calibri;font-size:11pt;">is</font><font style="font-family:Calibri;font-size:11pt;"> secured by first priority mortgages over the financed fleet, general assignments of earnings, insurances and requisition compensation, specific assignments of any charters exceeding durations of twelve months, pledge of shares of the guarantors which will be the ship-owning companies of the </font><font style="font-family:Calibri;font-size:11pt;">mortgaged vessels</font><font style="font-family:Calibri;font-size:11pt;">, manager's undertakings and minimum security hull value varying from 125% to 140% of the outstanding loan </font><font style="font-family:Calibri;font-size:11pt;">balance, </font><font style="font-family:Calibri;font-size:11pt;">depending on the average age of the </font><font style="font-family:Calibri;font-size:11pt;">mortgaged</font><font style="font-family:Calibri;font-size:11pt;"> vessels. The credit facility also include</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> restrictions as to changes in management and employment of vessels, a consolidated net debt of not more than 60% of market adjusted assets, EBITDA to Interest </font><font style="font-family:Calibri;font-size:11pt;">of not less than </font><font style="font-family:Calibri;font-size:11pt;">3:1,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">minimum cash of 10% of the drawings under the revolving facility but not less than $5</font><font style="font-family:Calibri;font-size:11pt;">.0 million and a forward looking operating cash flow to forward looking interest costs of not less than 1.2:1</font><font style="font-family:Calibri;font-size:11pt;">. </font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The Company </font><font style="font-family:Calibri;font-size:11pt;">paid </font><font style="font-family:Calibri;font-size:11pt;">an arrangement fee of 1%</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">or</font><font style="font-family:Calibri;font-size:11pt;"> $1</font><font style="font-family:Calibri;font-size:11pt;">.0</font><font style="font-family:Calibri;font-size:11pt;"> million, on signing of the agreement </font><font style="font-family:Calibri;font-size:11pt;">and will pay an additional arrangement fee of 1%</font><font style="font-family:Calibri;font-size:11pt;"> if the facility limit increases; </font><font style="font-family:Calibri;font-size:11pt;">an annual agency fee of $47,500 if </font><font style="font-family:Calibri;font-size:11pt;">one additional</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">l</font><font style="font-family:Calibri;font-size:11pt;">ender is involved in the agreement</font><font style="font-family:Calibri;font-size:11pt;">;</font><font style="font-family:Calibri;font-size:11pt;"> or $60,000 if two</font><font style="font-family:Calibri;font-size:11pt;"> or more</font><font style="font-family:Calibri;font-size:11pt;"> additional lenders are involved in the agreement. The Company also pays commitment commissions of 0.99% of the </font><font style="font-family:Calibri;font-size:11pt;">available commitment</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">since September 2</font><font style="font-family:Calibri;font-size:11pt;">7, 2011</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">and are payable on the last day of each successive period of 3 </font><font style="font-family:Calibri;font-size:11pt;">m</font><font style="font-family:Calibri;font-size:11pt;">onths which ends during the Availability Period, on the last day of the Availability Period and, if cancelled in full, on the cancelled amount of the relevant Lender's Commitment at the time the cancellation is effective</font><font style="font-family:Calibri;font-size:11pt;">.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">During 2011 and 2010, t</font><font style="font-family:Calibri;font-size:11pt;">otal interest incurred on long-term debt amounted to $551,004 </font><font style="font-family:Calibri;font-size:11pt;">and $273,596</font><font style="font-family:Calibri;font-size:11pt;">, respectively</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">and is included in Interest and finance costs in the accompanying consolidated statements of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;"> (Note 10)</font><font style="font-family:Calibri;font-size:11pt;">.</font><font style="font-family:Calibri;font-size:11pt;"> Commitment fees incurred during 2011 </font><font style="font-family:Calibri;font-size:11pt;">and 2010</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">amounted to</font><font style="font-family:Calibri;font-size:11pt;"> $282,133</font><font style="font-family:Calibri;font-size:11pt;"> and $96,000, respectively</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">and </font><font style="font-family:Calibri;font-size:11pt;">are</font><font style="font-family:Calibri;font-size:11pt;"> included in Interest and finance costs in the accompanying consolidated statements of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;"> (Note 10)</font><font style="font-family:Calibri;font-size:11pt;">.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">7</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">.       </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">Commitments and </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">Contingencies</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'></p><ul><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;">Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the shipping business. In addition, losses may arise from disputes with charterers, agents, insurance and other claims with suppliers relating to the operations of the Company's vessels. 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 consolidated financial statements.</font><p> </p><p><font style="font-family:Calibri;font-size:11pt;margin-left:28.35px;">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 consolidated financial statements. </font></p><p> </p><p><font style="font-family:Calibri;font-size:11pt;margin-left:28.35px;">The Company's vessels are covered </font><font style="font-family:Calibri;font-size:11pt;">for pollution in the amount of $1 </font><font style="font-family:Calibri;font-size:11pt;">billion per vessel per incident,</font><font style="font-family:Calibri;font-size:11pt;"> by the P&I Association in which the Company's vessels are entered.</font><font style="font-family:Calibri;font-size:11pt;"> The Company's vessels </font><font style="font-family:Calibri;font-size:11pt;">are</font><font style="font-family:Calibri;font-size:11pt;"> subject to calls payable to the</font><font style="font-family:Calibri;font-size:11pt;">ir P&I</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">A</font><font style="font-family:Calibri;font-size:11pt;">ssociation </font><font style="font-family:Calibri;font-size:11pt;">and may be subject to</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;">upplemental calls </font><font style="font-family:Calibri;font-size:11pt;">which are </font><font style="font-family:Calibri;font-size:11pt;">based on estimates of premium income and anticipated and paid claims</font><font style="font-family:Calibri;font-size:11pt;">. S</font><font style="font-family:Calibri;font-size:11pt;">uch estimates are adjusted each year by the Board of Directors of the P&I Association until the closing of the relevant policy year, which generally occurs within three years from the end of the policy year. </font><font style="font-family:Calibri;font-size:11pt;">Supplemental calls, if any, are expensed when they are announced and according to the period they relate to. </font><font style="font-family:Calibri;font-size:11pt;">The Company is not aware of any supplemental calls in respect of the 2010/11 policy year, which is the first year in which the Company's vessels were entered into their P&I Association</font><font style="font-family:Calibri;font-size:11pt;">, or the 2011/12 policy year</font><font style="font-family:Calibri;font-size:11pt;">. </font></p><p> </p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;">As </font><font style="font-family:Calibri;font-size:11pt;">at</font><font style="font-family:Calibri;font-size:11pt;"> December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> 2011, the m</font><font style="font-family:Calibri;font-size:11pt;">inimum contractual charter revenues, net of related commissions, to be generated from </font><font style="font-family:Calibri;font-size:11pt;">the </font><font style="font-family:Calibri;font-size:11pt;">existing non-cancelable time charter contracts</font><font style="font-family:Calibri;font-size:11pt;"> until their expiration</font><font style="font-family:Calibri;font-size:11pt;">, </font><font style="font-family:Calibri;font-size:11pt;">are es</font><font style="font-family:Calibri;font-size:11pt;">timated at</font><font style="font-family:Calibri;font-size:11pt;"> $49.7 million in 2012, </font><font style="font-family:Calibri;font-size:11pt;">$25.9 </font><font style="font-family:Calibri;font-size:11pt;">million </font><font style="font-family:Calibri;font-size:11pt;">in 2013</font><font style="font-family:Calibri;font-size:11pt;"> and at $16.4 million in 2014</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> and also include the contracted revenues for the m/v “Cap San Marco” and the m/v “Cap San Raphael”, delivered on February 6, 2012 (Notes 4 and 14</font><font style="font-family:Calibri;font-size:11pt;">(b)</font><font style="font-family:Calibri;font-size:11pt;">).</font><p> </p></li><li style="margin-left:18px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;">In December 2011, Rongerik and Utirik, entered into two memoranda of agreement to acquire the container vessels m/v “Cap San Marco” and m/v “Cap San Raphael” (Note 4), respectively, for the purchase price of $33.0 million, each. Upon</font><font style="font-family:Calibri;font-size:11pt;"> the</font><font style="font-family:Calibri;font-size:11pt;"> vessels' delivery in February 2012, the Company paid </font><font style="font-family:Calibri;font-size:11pt;">the balance of the purchase price amounting to $59.4 million </font><font style="font-family:Calibri;font-size:11pt;">(Note 14</font><font style="font-family:Calibri;font-size:11pt;">(b)</font><font style="font-family:Calibri;font-size:11pt;">).</font></li></ul>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">8</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">. </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">Capital Stock and </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">Change</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">s</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> in Capital A</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">ccounts</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'></p><ul><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Preferred stock and common stock</font><font style="font-family:Calibri;font-size:11pt;font-style:italic;">:</font><font style="font-family:Calibri;font-size:11pt;"> Under the amended articles of incorporation in </font><font style="font-family:Calibri;font-size:11pt;">April 2010 </font><font style="font-family:Calibri;font-size:11pt;">discussed in Note 1, the Company's authorized capital stock consists of </font><font style="font-family:Calibri;font-size:11pt;">500 million </font><font style="font-family:Calibri;font-size:11pt;">of </font><font style="font-family:Calibri;font-size:11pt;">common shares</font><font style="font-family:Calibri;font-size:11pt;">, par value $0.01 per share and </font><font style="font-family:Calibri;font-size:11pt;">25 million </font><font style="font-family:Calibri;font-size:11pt;">of </font><font style="font-family:Calibri;font-size:11pt;">preferred shares at par value $0.01</font><font style="font-family:Calibri;font-size:11pt;"> per share. The holders of the common shares are entitled to one vote on all matters submitted to a vote of stockholders and to receive all dividends, if any</font><font style="font-family:Calibri;font-size:11pt;">.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Incentive plan:</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">On April 6, 2010, DCI adopted an equity incentive plan which entitles the Company's directors, officers, employees, consultants and service providers to receive options to acquire the Company's common stock, stock appreciation rights, restricted stock, restricted stock units and </font><font style="font-family:Calibri;font-size:11pt;">unrestricted common stock. </font><font style="font-family:Calibri;font-size:11pt;">The equity incentive plan was amended on February 21, 2012. </font><font style="font-family:Calibri;font-size:11pt;">A total of </font><font style="font-family:Calibri;font-size:11pt;">2,</font><font style="font-family:Calibri;font-size:11pt;">392,198 common shares have been reserved under the Incentive plan</font><font style="font-family:Calibri;font-size:11pt;"> (as amended)</font><font style="font-family:Calibri;font-size:11pt;"> for issuance. The plan is administered by </font><font style="font-family:Calibri;font-size:11pt;">our</font><font style="font-family:Calibri;font-size:11pt;"> compensation committee, or such </font><font style="font-family:Calibri;font-size:11pt;">other committee of </font><font style="font-family:Calibri;font-size:11pt;">the Company's</font><font style="font-family:Calibri;font-size:11pt;"> board of directors as may be designated by the board to administer the plan. The plan will expire </font><font style="font-family:Calibri;font-size:11pt;">in ten </font><font style="font-family:Calibri;font-size:11pt;">years from the adoption of the plan by the </font><font style="font-family:Calibri;font-size:11pt;">Board of Directors</font><font style="font-family:Calibri;font-size:11pt;">. </font><p> </p><p><font style="font-family:Calibri;font-size:11pt;margin-left:36px;">During 2011, the Company's </font><font style="font-family:Calibri;font-size:11pt;">executives received 53,333</font><font style="font-family:Calibri;font-size:11pt;"> shares of restricted common stock pursuant to the Company's </font><font style="font-family:Calibri;font-size:11pt;">2010 </font><font style="font-family:Calibri;font-size:11pt;">equity incentive plan, and in accordance with </font><font style="font-family:Calibri;font-size:11pt;">the </font><font style="font-family:Calibri;font-size:11pt;">terms and conditions of </font><font style="font-family:Calibri;font-size:11pt;">the </font><font style="font-family:Calibri;font-size:11pt;">Restricted Shares Award Agreements signed by the grantees. </font><font style="font-family:Calibri;font-size:11pt;">The </font><font style="font-family:Calibri;font-size:11pt;">fair value of the </font><font style="font-family:Calibri;font-size:11pt;">shares </font><font style="font-family:Calibri;font-size:11pt;">is</font><font style="font-family:Calibri;font-size:11pt;"> $0.4 million, or $7.5 per share</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> and they </font><font style="font-family:Calibri;font-size:11pt;">are subject to applicable vesting as follows: (i) 25% or </font><font style="font-family:Calibri;font-size:11pt;">13,333</font><font style="font-family:Calibri;font-size:11pt;"> shares vested on </font><font style="font-family:Calibri;font-size:11pt;">June 15</font><font style="font-family:Calibri;font-size:11pt;">, 201</font><font style="font-family:Calibri;font-size:11pt;">1</font><font style="font-family:Calibri;font-size:11pt;">; and (ii) the remaining shares vest ratably over three years by one third each year.</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">Such shares bear non-forfeitable dividends and according to the provisions of ASC 260 “Earnings per Share” the Company considers them as participating securities in the earnings per share calculations.</font><font style="font-family:Calibri;font-size:11pt;"> The Company follows the provisions in ASC 718 “Compensation – Stock Compensation”, for purposes of accounting for such share-based payments.</font></p><p><font style="font-family:Calibri;font-size:11pt;margin-left:35.45px;">       </font></p><p><font style="font-family:Calibri;font-size:11pt;margin-left:35.45px;">As of </font><font style="font-family:Calibri;font-size:11pt;">December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">2011</font><font style="font-family:Calibri;font-size:11pt;"> and</font><font style="font-family:Calibri;font-size:11pt;"> 2010</font><font style="font-family:Calibri;font-size:11pt;">, the Company had granted a total number of restricted stock awards of </font><font style="font-family:Calibri;font-size:11pt;">266,664</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">213,331</font><font style="font-family:Calibri;font-size:11pt;">, respectively, of which </font><font style="font-family:Calibri;font-size:11pt;">120,002</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">53,335</font><font style="font-family:Calibri;font-size:11pt;"> were vested, respectively. The fair value of the restricted shares has been determined with reference to the </font><font style="font-family:Calibri;font-size:11pt;">fair value</font><font style="font-family:Calibri;font-size:11pt;"> of the Company's stock on the</font><font style="font-family:Calibri;font-size:11pt;"> grant</font><font style="font-family:Calibri;font-size:11pt;"> date</font><font style="font-family:Calibri;font-size:11pt;"> of</font><font style="font-family:Calibri;font-size:11pt;"> the </font><font style="font-family:Calibri;font-size:11pt;">awards</font><font style="font-family:Calibri;font-size:11pt;">. The aggregate compensation cost is being recognized ratably in the consolidated statement</font><font style="font-family:Calibri;font-size:11pt;">s</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">over the respective vesting periods. During </font><font style="font-family:Calibri;font-size:11pt;">2011 and</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">for the period from January 7, 2010 (inception date) to December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> 2010</font><font style="font-family:Calibri;font-size:11pt;">, an amount of </font><font style="font-family:Calibri;font-size:11pt;">$953,079 and $1,330,679</font><font style="font-family:Calibri;font-size:11pt;">, respectively, was recognized in General and administrative expenses. At </font><font style="font-family:Calibri;font-size:11pt;">December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">2011</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">and</font><font style="font-family:Calibri;font-size:11pt;"> 2010</font><font style="font-family:Calibri;font-size:11pt;">, the total unrecognized </font><font style="font-family:Calibri;font-size:11pt;">compensation </font><font style="font-family:Calibri;font-size:11pt;">cost relating to restricted share awards was </font><font style="font-family:Calibri;font-size:11pt;">$1.3 </font><font style="font-family:Calibri;font-size:11pt;">million </font><font style="font-family:Calibri;font-size:11pt;">and </font><font style="font-family:Calibri;font-size:11pt;">$1.9 million</font><font style="font-family:Calibri;font-size:11pt;">, </font><font style="font-family:Calibri;font-size:11pt;">respectively. At </font><font style="font-family:Calibri;font-size:11pt;">December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">2011</font><font style="font-family:Calibri;font-size:11pt;">, the weighted-average period over which the total compensation cost related to non-vested awards not yet recognized is expected to be recognized </font><font style="font-family:Calibri;font-size:11pt;">is 1.01</font><font style="font-family:Calibri;font-size:11pt;"> years.</font><font style="font-family:Calibri;font-size:11pt;"> </font></p><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Follow-on offering: </font><font style="font-family:Calibri;font-size:11pt;">On June 15, 2011, the Company completed a public offering in the United States under the United States Securities Act at 1933, as amended, of 14,250,000 common shares at the price of $7.5 per share, including 1,625,000 shares purchased by management and certain members of their family. Concurrently with the public offering, the Company sold 2,666,667 common shares to DSI in a private placement at the price of $7.5 per share. The net proceeds from the public offering and the private placement amounted to </font><font style="font-family:Calibri;font-size:11pt;">$121.5</font><font style="font-family:Calibri;font-size:11pt;"> million (including underwriting discounts and commissions and offering ex</font><font style="font-family:Calibri;font-size:11pt;">penses payable by the Company)</font><font style="font-family:Calibri;font-size:11pt;"> (Note 1)</font><font style="font-family:Calibri;font-size:11pt;">.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Stockholders Rights Agreement. </font><font style="font-family:Calibri;font-size:11pt;">On August 2, 2010, the Company entered into a stockholders rights agreement (the “Stockholders Rights Agreement") with Mellon Investor Services LLC as Rights Agent. Pursuant to this Stockholders Rights Agreement, each share of the Company's common stock includes one right (the "Right") that will entitle the holder to purchase from the Company a unit consisting of one one-thousandth of a share of our preferred stock at an exercise price specified in the Stockholders Rights Agreement, subject to specified adjustments. Until a Right is exercised, the holder of a Right will have no rights to vote or receive dividends or any other stockholder rights. As at December 31, </font><font style="font-family:Calibri;font-size:11pt;">2011</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">2010</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">no Rights were exercised.</font></li></ul><p style='margin-top:0pt; margin-bottom:0pt'> </p>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">9.       Voyage and Vessel Operating Expenses</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">       </font><font style="font-family:Calibri;font-size:11pt;">The amounts in the accompanying consolidated statements of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;"> are </font><font style="font-family:Calibri;font-size:11pt;">analyzed</font><font style="font-family:Calibri;font-size:11pt;"> as follows:</font></p><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 29px; text-align:left;border-color:#000000;min-width:29px;"> </td><td style="width: 346px; text-align:left;border-color:#000000;min-width:346px;"> <font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:75px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2011</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:75px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2010</font></td></tr><tr style="height: 17px"><td style="width: 29px; text-align:left;border-color:#000000;min-width:29px;"> </td><td style="width: 346px; text-align:left;border-color:#000000;min-width:346px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Voyage Expenses</font><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:75px;"> </td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:75px;"> </td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Bunkers </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 59,366</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 49,576</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Commissions charged by third parties </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 401,687</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 160,044</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Commissions charged by a related party (Note 3)</font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 269,960</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 57,347</font></td></tr><tr style="height: 18px"><td style="width: 29px; text-align:left;border-color:#000000;min-width:29px;"> </td><td style="width: 346px; text-align:left;border-color:#000000;min-width:346px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Total </font><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 731,013</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 266,967</font></td></tr><tr style="height: 18px"><td style="width: 29px; text-align:left;border-color:#000000;min-width:29px;"> </td><td style="width: 346px; text-align:left;border-color:#000000;min-width:346px;"> <font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;border-color:#000000;min-width:75px;"> </td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:double;border-top-width:3px;text-align:right;border-color:#000000;min-width:75px;"> </td></tr><tr style="height: 17px"><td style="width: 29px; text-align:left;border-color:#000000;min-width:29px;"> </td><td style="width: 346px; text-align:left;border-color:#000000;min-width:346px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Vessel Operating Expenses</font><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> </td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"> </td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Crew wages and related costs </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 5,283,166</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 1,251,308</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Insurance </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 582,264</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 160,428</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Spares and consumable stores </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 3,647,255</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 1,277,523</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Repairs and maintenance </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 1,467,273</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 137,674</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Tonnage taxes (Note 12)</font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 26,856</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 12,744</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Miscellaneous </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 127,186</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 44,933</font></td></tr><tr style="height: 18px"><td style="width: 29px; text-align:left;border-color:#000000;min-width:29px;"> </td><td style="width: 346px; text-align:left;border-color:#000000;min-width:346px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Total </font><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 11,134,000</font></td><td style="width: 12px; text-align:right;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 2,884,610</font></td></tr></table></div>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">10.       Interest and Finance Costs</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The amounts in the accompanying consolidated statements of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;"> are analyzed as follows:</font></p><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 29px; text-align:left;border-color:#000000;min-width:29px;"> </td><td style="width: 346px; text-align:left;border-color:#000000;min-width:346px;"> <font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: left;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:75px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2011</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:75px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2010</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Interest expense (Note 6)</font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: left;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 551,004</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 273,596</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Amortization and write-off of deferred financing costs </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: left;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 680,524</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 110,587</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Commitment fees (Note 6)</font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: left;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 282,133</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 96,000</font></td></tr><tr style="height: 17px"><td colspan="2" style="width: 375px; text-align:left;border-color:#000000;min-width:375px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Other </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: left;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 90,498</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 31,108</font></td></tr><tr style="height: 18px"><td style="width: 29px; text-align:left;border-color:#000000;min-width:29px;"> </td><td style="width: 346px; text-align:left;border-color:#000000;min-width:346px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Total </font><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: left;" /></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 1,604,159</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 75px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:75px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 511,291</font></td></tr></table></div>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">11</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">.       </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">Earnings</font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">/ (loss) </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;">per Share</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">All shares issued (including the restricted shares issued under</font><font style="font-family:Calibri;font-size:11pt;"> the</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">equity incentive plan</font><font style="font-family:Calibri;font-size:11pt;">) are </font><font style="font-family:Calibri;font-size:11pt;">DCI</font><font style="font-family:Calibri;font-size:11pt;">'s </font><font style="font-family:Calibri;font-size:11pt;">common stock and have equal rights to vote and participate in dividends</font><font style="font-family:Calibri;font-size:11pt;">, subject to forfeiture provisions set forth in the applicable award agreement. </font><font style="font-family:Calibri;font-size:11pt;">Unvested shares granted under the Company's incentive plan </font><font style="font-family:Calibri;font-size:11pt;">(</font><font style="font-family:Calibri;font-size:11pt;">146,662</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">as </font><font style="font-family:Calibri;font-size:11pt;">at </font><font style="font-family:Calibri;font-size:11pt;">December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">2011</font><font style="font-family:Calibri;font-size:11pt;">) receive dividends which are not refundable, </font><font style="font-family:Calibri;font-size:11pt;">even </font><font style="font-family:Calibri;font-size:11pt;">if such shares are forfeited, and therefore are considered participating securities for basic earnings per share calculation purposes. </font><font style="font-family:Calibri;font-size:11pt;">Dividends</font><font style="font-family:Calibri;font-size:11pt;"> declared </font><font style="font-family:Calibri;font-size:11pt;">and paid </font><font style="font-family:Calibri;font-size:11pt;">during the 2011 amounted to</font><font style="font-family:Calibri;font-size:11pt;"> 4,153,709</font><font style="font-family:Calibri;font-size:11pt;">.</font><font style="font-family:Calibri;font-size:11pt;"> The Company did not declare any dividends in the period from January 7, 2010 (inception date) to December 31, 2010. </font><font style="font-family:Calibri;font-size:11pt;"> For </font><font style="font-family:Calibri;font-size:11pt;">2011</font><font style="font-family:Calibri;font-size:11pt;">, the effect of the incremental shares assumed issued, determined in accordance with the antidilution sequencing provision</font><font style="font-family:Calibri;font-size:11pt;">s of ASC 260, was antidilutive</font><font style="font-family:Calibri;font-size:11pt;">. For the period ended December 31</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> 2010, </font><font style="font-family:Calibri;font-size:11pt;">and on the basis that the Company incurred losses from continuing operations, </font><font style="font-family:Calibri;font-size:11pt;">the effect of incremental shares would be anti-dilutive and therefore</font><font style="font-family:Calibri;font-size:11pt;"> basic and diluted losses per share are the same amount</font><font style="font-family:Calibri;font-size:11pt;">.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top: 0pt; margin-bottom: 0pt;'></p><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"> </td><td style="width: 6px; text-align:left;border-color:#000000;min-width:6px;"> </td><td colspan="3" style="width: 172px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:172px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2011</font></td><td style="width: 6px; text-align:left;border-color:#000000;min-width:6px;"> </td><td colspan="3" style="width: 184px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:184px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">2010</font></td></tr><tr style="height: 17px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"> </td><td style="width: 6px; text-align:left;border-color:#000000;min-width:6px;"> </td><td style="width: 84px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:84px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">Basic EPS</font></td><td style="width: 6px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:6px;"> </td><td style="width: 82px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:82px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">Diluted EPS</font></td><td style="width: 6px; text-align:left;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:89px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">Basic LPS</font></td><td style="width: 6px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:89px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: center;">Diluted LPS</font></td></tr><tr style="height: 34px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Net income / (loss)</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 84px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:84px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 3,630,038</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 82px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:82px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 3,630,038</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 89px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">(2,001,361)</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 89px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">(2,001,361)</font></td></tr><tr style="height: 34px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Less distributed and undistributed earnings attributable to restricted shares</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 84px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:84px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (33,948)</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 82px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:82px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> -</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">-</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">-</font></td></tr><tr style="height: 18px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Net income / (loss) available to common stockholders</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 84px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:84px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 3,596,090</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 82px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:82px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 3,630,038</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (2,001,361)</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-top-style:solid;border-top-width:1px;border-bottom-style:solid;border-bottom-width:2px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (2,001,361)</font></td></tr><tr style="height: 17px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"> </td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 84px; border-top-style:solid;border-top-width:2px;text-align:right;border-color:#000000;min-width:84px;"> </td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 82px; border-top-style:solid;border-top-width:2px;text-align:right;border-color:#000000;min-width:82px;"> </td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-top-style:solid;border-top-width:2px;text-align:right;border-color:#000000;min-width:89px;"> </td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-top-style:solid;border-top-width:2px;text-align:right;border-color:#000000;min-width:89px;"> </td></tr><tr style="height: 17px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Weighted average number of common shares outstanding </font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 84px; text-align:right;border-color:#000000;min-width:84px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 15,536,028</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 82px; text-align:right;border-color:#000000;min-width:82px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 15,536,028</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">4,449,431</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">4,449,431</font></td></tr><tr style="height: 17px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Effect of dilutive restricted shares</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 84px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:84px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> -</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 82px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:82px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 7,888</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">-</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">-</font></td></tr><tr style="height: 18px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Total shares outstanding </font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 84px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:84px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 15,536,028</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 82px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:82px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 15,543,916</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">4,449,431</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">4,449,431</font></td></tr><tr style="height: 6px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"> </td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 84px; border-top-style:double;border-top-width:3px;text-align:right;border-color:#000000;min-width:84px;"> </td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 82px; border-top-style:double;border-top-width:3px;text-align:right;border-color:#000000;min-width:82px;"> </td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-top-style:double;border-top-width:3px;text-align:right;border-color:#000000;min-width:89px;"> </td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"> </td><td style="width: 89px; border-top-style:double;border-top-width:3px;text-align:right;border-color:#000000;min-width:89px;"> </td></tr><tr style="height: 18px"><td style="width: 335px; text-align:left;border-color:#000000;min-width:335px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;">Earnings / (loss) per common share</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 84px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:84px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 0.23</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 82px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:82px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> 0.23</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 89px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (0.45)</font></td><td style="width: 6px; text-align:right;border-color:#000000;min-width:6px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;">$</font></td><td style="width: 89px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:89px;"><font style="FONT-FAMILY: Calibri;FONT-SIZE: 10pt;COLOR: #000000;TEXT-ALIGN: right;"> (0.45)</font></td></tr></table></div>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">12.       Income Taxes</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">Under the laws of the countries of the companies' incorporation and / or vessels' registration, the companies are not subject to tax on international shipping income; however, they are subject to registration and tonnage taxes, which are included in vessel operating expenses in the accompanying consolidated statements of </font><font style="font-family:Calibri;font-size:11pt;">operations</font><font style="font-family:Calibri;font-size:11pt;"> (Note 9)</font><font style="font-family:Calibri;font-size:11pt;">.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:12pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">Under Section 883 of the </font><font style="font-family:Calibri;font-size:11pt;">Internal Revenue Code of the United States </font><font style="font-family:Calibri;font-size:11pt;">(the “Code”), a corporation would be exempt from U.S. federal income taxation on its U.S.-source shipping income if: (a) it is organized in a foreign country that grants an “equivalent exemption” to corporations organized in the United States (“United States corporations”); and (b) either (i) more than 50% of the value of its common stock is owned, directly or indirectly, by “qualified shareholders,”, which is referred to as the “50% Ownership Test,” or (ii) its common stock is “primarily and regularly traded on an established securities market” in a country that grants an “equivalent exemption” to U.S. corporations or in the United States, which is referred to as the “Publicly-Traded Test.” </font></p><p style='margin-top:0pt; margin-bottom:12pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The Marshall Islands, the jurisdiction where DCI and each of its subsidiaries are incorporated, grant an “equivalent exemption” to U.S. corporations. Therefore, the Company would be exempt from U.S. federal income taxation with respect to its U.S.-source shipping income if either the 50% Ownership Test or the Publicly-Traded Test is met. </font></p><p style='margin-top:0pt; margin-bottom:12pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">Prior to the partial spin-off, the Company believes that it satisfied the 50% Ownership Test. After the partial spin-off, the Company does not currently anticipate a circumstance under which it would be able to satisfy the 50% Ownership Test. </font></p><p style='margin-top:0pt; margin-bottom:12pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">Notwithstanding the foregoing, the regulations provide, in pertinent part, that a class of shares will not be considered to be “regularly traded” on an established securities market for any taxable year in which 50% or more of the vote and value of the outstanding shares of such class are owned, actually or constructively under specified share attribution rules, on more than half the days during the taxable year by persons who each own 5% or more of the vote and value of such class of outstanding shares, to which we refer as the “5 Percent Override Rule.” </font></p><p style='margin-top:0pt; margin-bottom:12pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">After the partial spin-off </font><font style="font-family:Calibri;font-size:11pt;">was</font><font style="font-family:Calibri;font-size:11pt;"> completed, the Company believes that </font><font style="font-family:Calibri;font-size:11pt;">satisfies</font><font style="font-family:Calibri;font-size:11pt;"> the Publicly-Traded Test and </font><font style="font-family:Calibri;font-size:11pt;">is </font><font style="font-family:Calibri;font-size:11pt;">not subject to the 5 Percent Override Rule. However, there are factual circumstances beyond the control of the Company that could cause it to lose the benefit of the Section 883 exemption. For example, there is a risk that the Company could no longer qualify for exemption under Code section 883 for a particular taxable year if shareholders with a five percent or greater interest in its common shares were to own 50% or more of its outstanding common shares on more than half the days of the taxable year. </font></p><p style='margin-top:0pt; margin-bottom:12pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">It is not anticipated that the Company will have any vessel operating to the United States on a regularly scheduled basis. Based on the foregoing and on the expected mode of the shipping operations and other activities of Diana Containerships, it is not anticipated that any of the U.S.-source shipping income of the Company will be “effectively connected” with the conduct of a U.S. trade or business.</font></p><p style='margin-top:0pt; margin-bottom:12pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">Based on its U.S. source Shipping Income for </font><font style="font-family:Calibri;font-size:11pt;">2011 and for </font><font style="font-family:Calibri;font-size:11pt;">the period ended December 31, </font><font style="font-family:Calibri;font-size:11pt;">2010</font><font style="font-family:Calibri;font-size:11pt;">, the Company would be subject to U.S. federal income tax of approximately </font><font style="font-family:Calibri;font-size:11pt;">$21,600</font><font style="font-family:Calibri;font-size:11pt;"> and </font><font style="font-family:Calibri;font-size:11pt;">$</font><font style="font-family:Calibri;font-size:11pt;">8,000</font><font style="font-family:Calibri;font-size:11pt;">, </font><font style="font-family:Calibri;font-size:11pt;">respectively </font><font style="font-family:Calibri;font-size:11pt;">in the absence of an exemption under Section</font><font style="font-family:Calibri;font-size:11pt;"> 883.</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">13.       Financial Instruments</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;margin-left:0px;">The carrying values of temporary cash investments, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments.</font><font style="font-family:Calibri;font-size:11pt;"> The fair value of long-term bank loan </font><font style="font-family:Calibri;font-size:11pt;">as at December 31, 2010 </font><font style="font-family:Calibri;font-size:11pt;">approximates </font><font style="font-family:Calibri;font-size:11pt;">its</font><font style="font-family:Calibri;font-size:11pt;"> recorded value, due to its variable interest rate.</font></p>
<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Calibri;font-size:11pt;font-weight:bold;margin-left:0px;">14. </font><font style="font-family:Calibri;font-size:11pt;font-weight:bold;"> Subsequent Events</font></p><p style='margin-top:0pt; margin-bottom:0pt'> </p><p style='margin-top:0pt; margin-bottom:0pt'></p><ul><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Memoranda of agreement: </font><font style="font-family:Calibri;font-size:11pt;">On January 9, 2012, Mejit and Micronesia, each entered into one memorandum of agreement with APL (Bermuda) Ltd for the purchase of the container vessels, “APL Sardonyx” and “APL Spinel”, respectively, for the purchase price of $30.0 million each. Both vessels are chartered back to the seller for a period of about 24 months for a daily rate of $24,750, each. The charterers have the option to employ the vessel for another 12 months at the daily rate of $24,750 per day and a further 12 months thereafter at the rate of $28,000 per day. On January 11, 2012, a 10% advance was paid for each vessel amounting to $3.0 million</font><font style="font-family:Calibri;font-size:11pt;"> and</font><font style="font-family:Calibri;font-size:11pt;"> </font><font style="font-family:Calibri;font-size:11pt;">on February 1</font><font style="font-family:Calibri;font-size:11pt;">7</font><font style="font-family:Calibri;font-size:11pt;">, 2012, when the m/v “APL Sardonyx” was delivered, the Company paid the balance of the purchase price amounting to $27.0 million. The m/v “APL Spinel” is expected to be delivered </font><font style="font-family:Calibri;font-size:11pt;">in March </font><font style="font-family:Calibri;font-size:11pt;">2012. </font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Vessel deliveries: </font><font style="font-family:Calibri;font-size:11pt;">On February 6, 2012</font><font style="font-family:Calibri;font-size:11pt;">,</font><font style="font-family:Calibri;font-size:11pt;"> the Company took delivery of vessels “Cap San Raphael” and “Cap San Marco” (Note 4). On delivery of the vessels, the Company paid the balance of the purchase price amounting to $59.4 million and the vessels were placed in the service of the charterer, according to the terms of the charters attached to the memoranda of agreement.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Loan drawdowns: </font><font style="font-family:Calibri;font-size:11pt;">On January 17, 2012, the Company drew down $48.75 million under the credit facility with RBS (Note 6) to refinance part of the acquisition cost of vessels “Sagitta” and “Centaurus”. On February 8</font><font style="font-family:Calibri;font-size:11pt;"> and 2</font><font style="font-family:Calibri;font-size:11pt;">1</font><font style="font-family:Calibri;font-size:11pt;">, 2012 the Company drew down </font><font style="font-family:Calibri;font-size:11pt;">and aggregate of </font><font style="font-family:Calibri;font-size:11pt;">$</font><font style="font-family:Calibri;font-size:11pt;">3</font><font style="font-family:Calibri;font-size:11pt;">5</font><font style="font-family:Calibri;font-size:11pt;">.</font><font style="font-family:Calibri;font-size:11pt;">15</font><font style="font-family:Calibri;font-size:11pt;"> million </font><font style="font-family:Calibri;font-size:11pt;">to </font><font style="font-family:Calibri;font-size:11pt;">re</font><font style="font-family:Calibri;font-size:11pt;">finance part of the acquisition cost of </font><font style="font-family:Calibri;font-size:11pt;">the </font><font style="font-family:Calibri;font-size:11pt;">vessels “Cap S</font><font style="font-family:Calibri;font-size:11pt;">an Raphael”, “Cap San Marco” and “APL Sardonyx”.</font><p> </p></li><li style="margin-left:36px;list-style:lower-alpha;"><font style="font-family:Calibri;font-size:11pt;font-weight:bold;font-style:italic;">Declaration of dividends: </font><font style="font-family:Calibri;font-size:11pt;">On </font><font style="font-family:Calibri;font-size:11pt;">February 23</font><font style="font-family:Calibri;font-size:11pt;">, 2012,</font><font style="font-family:Calibri;font-size:11pt;"> the Company declared dividends amounting to </font><font style="font-family:Calibri;font-size:11pt;">$</font><font style="font-family:Calibri;font-size:11pt;">3.5</font><font style="font-family:Calibri;font-size:11pt;"> million, or </font><font style="font-family:Calibri;font-size:11pt;">$</font><font style="font-family:Calibri;font-size:11pt;">0.15</font><font style="font-family:Calibri;font-size:11pt;"> p</font><font style="font-family:Calibri;font-size:11pt;">er share, payable on or about </font><font style="font-family:Calibri;font-size:11pt;">March </font><font style="font-family:Calibri;font-size:11pt;">22</font><font style="font-family:Calibri;font-size:11pt;">, 2012</font><font style="font-family:Calibri;font-size:11pt;"> to stockholders of record as of </font><font style="font-family:Calibri;font-size:11pt;">March 8</font><font style="font-family:Calibri;font-size:11pt;">, 20</font><font style="font-family:Calibri;font-size:11pt;">12</font><font style="font-family:Calibri;font-size:11pt;">.</font></li></ul>