HispanicBusiness

Administrative expenses payable to related parties
Administrative expenses payable to related parties decreased by $0.6 million, or 50%, to $0.6 million in 2012, compared to $1.2 million in 2011. This decrease is primarily a result of the termination of the consultancy agreements effected from December 31, 2011, with the companies wholly owned by each of our executive officers that assisted and advised the Chief Executive Officer and Chief Financial Officer in respect of their duties performed outside of Greece.

Share based payments
Share based payments increased by $0.6 million, or 150%, to $1.0 million in 2012, compared to $0.4 million in 2011. This increase is directly attributable to the value of Series A Preferred Shares issued during April 2012 of $0.2 million, the amortized portion of the conditional share based award granted to our two executive officers during February 2012 of $0.2 million and the value at grant date of the common shares in Globus that amounted to $0.2 million, issued to our two executive officers during February 2012 as a bonus payment for services rendered.

Impairment loss
During the year ended December 31, 2012, we recognized an impairment loss of $80.2 million. The Company tests for impairment of its long lived assets whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Due to the sustained decline in charter rates and vessel values during the last four years and because market expectations for future rates are low and are unlikely to increase to the high levels of 2008 in the foreseeable future, the Company performed an impairment analysis for all the vessels in its fleet by comparing projected discounted cash flows to the carrying values of vessels. As a result of this analysis we recorded an impairment loss of $55.8 million to the book value of our six out of seven vessels. In addition, on December 4th, 2012, the Company decided that the vessel Tiara Globe met the criteria to be classified as non-current asset held for sale and was subsequently measured at the lower of its carrying amount and its fair value less cost to sell. In this respect the company recognized an impairment loss of $24.4 million.

Interest expense and finance costs
Interest expense increased by $0.6 million, or 21%, to $3.4 million in 2012, compared to $2.8 million in 2011. This increase is mainly due to the increase in our average level of debt during 2012 compared to 2011 as well as due to the increase in our weighted average interest rate to 2.12% during 2012 from 1.69% during 2011. The total outstanding bank loans as of December 31, 2012 amounted to $105.9 million compared to $111.4 million as of December 31, 2011. All of our bank loans are denominated in U.S. dollars.

Liquidity and capital resources

Net cash generated from operating activities for the year ended December 31, 2012 and 2011 was $14.4 million and $19.8 million, respectively.

Net cash used in investing activities for the years ended December 31, 2012 and 2011 was $0.3 million and $61.8 million, respectively. For the year 2011 cash used in investing activities predominantly related to purchases of the vessels "Moon Globe" and "Sun Globe".

Net cash used in financing activities for the year ended December 31, 2012 amounted to $11.7 million consisted mainly by $5.4 million of debt repayment, $3.0 million of dividends paid to both common and preferred shares and $3.2 million of interest and other finance costs paid. Net cash generated from financing activities in 2011 amounted to $25.7 million and consisted of $37.0 million of proceeds from the issuance of long-term debt drawn for the acquisition of the m/v Moon Globe and m/v Sun Globe and $20.0 million of proceeds from the issuance of share capital, net of transaction costs, reduced by $22.3 million of indebtedness that we repaid under our existing credit and loan facilities, $1.0 million of pledged cash, $5.1 million of dividends paid, $2.7 million of interest paid and $0.2 million of loan fees.