Basis of Presentation

The accompanying consolidated balance sheet as of September 30, 2016, the consolidated statements of income for the three and nine months ended September 30, 2016 and 2015 and the consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015 are unaudited. The unaudited interim consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position and results of operations and cash flows for the three and nine months ended September 30, 2016 and 2015. The financial data and the other information disclosed in these notes to the consolidated financial statements related to these three and nine month periods are unaudited. Certain information and disclosures included in the annual consolidated financial statements have been omitted for the interim periods pursuant to the rules and regulations of the SEC. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results for the year ending December 31, 2016 or for any other interim period or future years.

The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates and assumptions of the Company are the estimated salvage value used in determining depreciation expense and the allowances for doubtful accounts.

Advance hire, prepaid expenses and other current assets were comprised of the following:



	September 30, 2016		December 31, 2015
	(unaudited)
Advance hire	$	1,182,221	$	1,138,300
Prepaid expenses	873,038		537,192
Other current assets	3,095,334		1,003,800
	$	5,150,593	$	2,679,292

Accounts payable, accrued expenses and other current liabilities were comprised of the following:



	September 30, 2016		December 31, 2015
	(unaudited)
Accounts payable	$	11,044,920	$	14,064,870
Accrued voyage expenses	6,010,177		5,232,864
Accrued interest	421,993		455,818
Other accrued liabilities	2,226,654		2,402,650
	$	19,703,744	$	22,156,202