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The Company’s expedition ships are customized, nimble and intimately-scaled vessels that are able to venture where larger cruise ships cannot, thus allowing Lindblad to offer up-close experiences in the planet’s wild and remote places and capitals of culture. Many of these expeditions involve travel to remote places with limited infrastructure and ports (such as Antarctica and the Arctic) or places that are best accessed by a ship (such as the Galápagos, Alaska, Baja’s Sea of Cortez, Costa Rica and Panama), and foster active engagement by guests. Each expedition ship is designed to be comfortable and inviting, while being fully equipped with state-of-the-art tools for in-depth exploration. The Company has an alliance with the National Geographic Partners (“National Geographic”), which often provides lecturers and National Geographic experts, including photographers, writers, marine biologists, naturalists, field researchers and film crews.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Through our subsidiary, Natural Habitat, the Company offers primarily land-based trips around the globe. Natural Habitat’s expeditions include polar bear tours in Churchill, Canada, Alaskan grizzly bear adventures, small-group Galápagos tours and African safaris. In addition to its land offerings, Natural Habitat offers select itineraries on six small chartered vessels for parts of the year. Natural Habitat has partnered with World Wildlife Fund (“WWF”) to offer conservation travel, sustainable travel that directly protects nature.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times
new roman', times, serif; font-stretch: normal;">The Company’s common stock and warrants are listed on the NASDAQ Capital Market under the symbols “LIND” and “LINDW,” respectively.</font></p></div>
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In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial statements for the periods presented. Operating results for the periods presented are not necessarily indicative of the results of operations to be expected for the full year due to seasonality and other factors. Certain information and footnote disclosures normally included in the condensed consolidated financial statements in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. All intercompany balances and transactions have been eliminated in these unaudited condensed consolidated financial statements. Accordingly, these unaudited condensed consolidated financial statements and footnotes should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto for the year ended December 31, 2017 contained in the Annual Report on Form 10-K filed with the SEC on March 2, 2018.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Principles of Consolidation</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The condensed consolidated financial statements of the Company include Lindblad Expeditions Holdings, Inc. and its consolidated subsidiaries.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Reclassifications</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new
roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We have reclassified certain prior period amounts to conform to the current period presentation, with no impact on consolidated net income or cash flows.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Use of Estimates</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets, liabilities, revenues and expenses. Actual results could differ from such estimates. Management estimates include determining the estimated lives of long-lived assets, determining the fair value of assets acquired and liabilities assumed in business combinations, the fair value of the Company’s common stock and related warrants, the valuation of securities underlying stock-based compensation, income tax expense, the valuation of deferred tax assets, the value of contingent consideration and assessing its litigation, other legal claims and contingencies. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period that they are determined to be necessary.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Revenue Recognition</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">Revenues are measured based on consideration specified in our contracts with guests and are recognized as the related performance obligations are satisfied.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">The majority of our revenues are derived from guest ticket contracts which are reported as tour revenues in our condensed consolidated statements of operations. Our primary performance obligation under this contract is to provide an expedition and may include pre- and post-expedition excursions, hotel accommodations, land-based expeditions and air transportation to and from the ships. Upon satisfaction of these performance obligations, the Company recognizes
revenue over the duration of each expedition.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">Tour revenues also include revenues from the sale of goods and services onboard our ships, cancellation fees and trip insurance. Revenues from the sale of goods and services rendered onboard are recognized upon purchase. Guest cancellation fees are recognized as tour revenues at the time of the cancellation. The Company records a liability for estimated trip insurance claims based on the Company’s claims history. Proceeds received from trip insurance premiums in excess of this liability are recorded as revenue in the period in which they are received.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"><b><i> </i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"><b><i>Customer Deposits and Contract Liabilities</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"><b><i> </i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">The Company’s guests remit deposits in advance of tour embarkation. Guest deposits consist of guest ticket revenues as well as revenues from the sale of pre- and post-expedition excursions, hotel accommodations, land-based expeditions and air transportation to and from the ships. Guest deposits represent unearned revenues and are reported as unearned passenger revenues in the condensed consolidated balance sheet when received and are subsequently recognized as tour revenue during the duration of the expedition. Accounting Standards Codification, <i>Revenue from Contracts with Customers</i> (Topic 606) defines a “contract liability” as an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. We do not consider guest deposits to be a contract liability until the guest no longer has the right, resulting from the passage of time, to cancel their reservation and receive a full refund. Unearned passenger revenues presented in our condensed consolidated balance sheets include contract liabilities of $45.6 million and $40.3 million as of March 31, 2018 and December 31, 2017, respectively. During the three months ended March 31, 2018, we recognized revenues related to our contract liabilities as of December 31, 2017 of $38.3 million.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Earnings per Common Share</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">Earnings per common share is computed by dividing net income available to common shareholders, by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding and, if dilutive, potential common
shares outstanding during the period. Potential common shares consist of the dilutive incremental common shares associated with restricted stock awards or issuable upon the exercise of stock options, using the treasury stock method.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">For the three months ended March 31, 2018 and 2017, the Company calculated earnings per share as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font-family: 'times new roman', times, serif;">For the three months ended<br />March 31,</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">(In thousands, except share and per share data)</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="6"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Net income available to common stockholders</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">10,796</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">596</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td><font style="font-family: 'times new roman', times, serif;">Weighted average shares outstanding:</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td><font style="font-family: 'times new roman', times, serif;">Total weighted average shares outstanding,
basic</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">45,274,540</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">44,707,273</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Dilutive potential common shares</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">393,025</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">1,054,665</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total weighted average shares outstanding, diluted</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">45,667,565</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">45,761,938</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Net income per share available to Lindblad</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-left: 20pt;"><font style="font-family: 'times new roman', times, serif;">Basic</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.24</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.01</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-left: 20pt;"><font style="font-family: 'times new roman', times, serif;">Diluted</font></td><td><font style="font-family:
'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.24</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.01</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company’s Board of Directors and stockholders approved a 2015 Long-Term Incentive Plan, which includes the authority to issue up to 2,500,000 shares of Lindblad common stock. As of March 31, 2018, options to purchase an aggregate of 220,000 shares of the Company’s common stock with a weighted average exercise price of $9.63 per share were outstanding.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">As of March 31, 2018  and 2017, 10,088,074 and 10,673,015 warrants, respectively, expiring July 8, 2020 to purchase common stock at a price of $11.50 per share were outstanding. These warrants were anti-dilutive and were not included in the calculation of diluted weighted average shares  outstanding.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Cash and Cash Equivalents</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company considers all highly liquid instruments with an original maturity of three months or less, as well as deposits in financial institutions, to be cash and cash equivalents.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i> </i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Concentration of Credit Risk</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify;
color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company maintains cash in several financial institutions in the U.S. and other countries which, at times, may exceed the federally insured limits. Accounts held in the U.S. are guaranteed by the Federal Deposit Insurance Corporation up to certain limits. As of March 31, 2018 and December 31, 2017, the Company’s cash held in financial institutions outside of the U.S. amounted to $6.7 million and $4.1 million, respectively.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Restricted Cash and Marketable Securities</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Restricted cash and marketable securities consist of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of <br />March 31,<br />2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of<br />December 31,<br />2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td colspan="2"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Federal Maritime Commission escrow</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">17,383</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">4,186</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new
roman', times, serif;">Credit card processor reserves</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,530</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,530</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Certificates of deposit and other restricted securities</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">1,324</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">1,341</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total restricted cash and marketable securities</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">20,237</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">7,057</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The amounts held in restricted cash and marketable securities represent principally funds required to be held in certificates of deposit by certain vendors and regulatory agencies and are classified as restricted assets since such amounts cannot be used by the Company until the restrictions are removed by those vendors and regulatory agencies. Interest income is recognized when earned.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company has classified marketable securities, principally money market funds, as trading securities which are recorded at market value. Unrealized gains and losses are included in current operations. Gains and losses on the disposition of securities are recognized by the specific identification method in the period in which they occur.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing:
normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In order to operate guest tour expedition vessels from U.S. ports, the Company is required to post a performance bond with the Federal Maritime Commission or escrow all unearned guest deposits plus an additional 10% in restricted accounts. To satisfy this requirement, the Company entered into an agreement with a financial institution to escrow all unearned guest revenues collected for sailings from U.S. ports.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">At March 31, 2018 and December 31, 2017, a cash reserve of approximately $1.5 million is required for credit card deposits by third-party credit card processors.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Amounts in the escrow accounts include cash, certificates of deposit and marketable securities. Cost of these short-term investments approximates fair value.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i> </i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Marine Operating Supplies and Inventories</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Marine operating supplies consist primarily of fuel, provisions, spare parts, items required for maintenance and supplies used in the operation of marine expeditions. Marine operating supplies are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Inventories consist primarily of gift shop merchandise and other items for resale and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Prepaid Expenses and Other Current
Assets</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company records prepaid expenses and other current assets at cost and expenses them in the period the services are provided or the goods are delivered. The Company’s prepaid expenses and other current assets consist of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of <br />March 31,<br />2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of<br />December 31,<br />2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;" colspan="2"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid tour expenses</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">9,938</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">9,846</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid air expense</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,546</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,621</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid client insurance</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,560</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family:
'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,525</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid marketing, commissions and other expenses</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,511</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,495</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid corporate insurance</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,457</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,033</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid port agent fees</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">840</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,022</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Prepaid income taxes</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">809</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">809</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Total prepaid expenses</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">22,661</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">21,351</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans:
2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Property and Equipment</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization were computed using the straight line method over the estimated useful lives of the assets, as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Years</b></font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Vessels and vessel improvements</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">15-25</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0px; width: 1003px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Furniture and equipment</font></td><td style="padding: 0px; width: 16px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; width: 548px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5</font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Computer hardware and software</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Leasehold improvements, including port facilities</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Shorter of lease term or related asset life</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Vessel improvement costs that add value to the Company’s vessels are capitalized and depreciated over the shorter of the improvements or the vessel’s estimated remaining useful life, while costs of repairs and maintenance, including minor improvement costs and drydock expenses, are charged to expense as incurred and included in cost of tours. Drydock costs primarily represent planned maintenance activities that are incurred when a vessel is taken out of service. For U.S. flagged ships, the statutory requirement is an
annual docking and U.S. Coast Guard inspections, normally conducted in drydock. Internationally flagged ships have scheduled dockings approximately every 12 months, for a period of up to three to six weeks.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i> </i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Goodwill</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The authoritative guidance requires that goodwill be assessed annually for impairment. The Company completed the annual impairment test as of September 30, 2017 with no indication of goodwill impairment. Future impairment tests will be performed annually as of September 30, or more frequently if warranted. As of March 31, 2018 there was no indication of impairment.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i> </i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Intangibles, net</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Intangibles, net include tradenames, customer lists and operating rights. Tradenames are words, symbols, or other devices used in trade or business to indicate the source of products and to distinguish it from other products and are registered with government agencies and are protected legally by continuous use in commerce. Customer lists are established relationships with existing customers that resulted in repeat purchases and customer loyalty. Based on the Company’s analysis, amortization of the tradenames and customer lists were computed using the estimated useful lives of 15 and 5 years, respectively</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company operates two vessels year-round in the Galápagos National Park in Ecuador: the <i>National Geographic Endeavour II</i> with 95 berths and the <i>National Geographic Islander</i> with 47 berths. In order to operate these vessels within the park, the Company is required to have in its possession cupos (licenses) sufficient to cover the total available berths on each vessel.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif;
margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">In June 2015, a new Ecuadorian Special Law for Protected Areas was approved and updated in November 2015. A Presidential Decree issued by President Correa of Ecuador in November 2015 established that cupos, which were in effect since July 2015, will have a validity of nine years. The Company’s operating rights are up for renewal in July 2024 and, based on the new law, the Company will begin the renewal process in 2020. The current “owners” of the cupos will have the opportunity to re-apply for them, but any other enterprise or individual will have the opportunity to bid for the cupos. All bidders must present proof that they fulfill the conditions to properly utilize the license (access to a vessel, experience in tourism, proven environmental behavior, marketing, etc.). While the Company believes that, based on the expected criteria to retain cupos and its past operating history in the Galápagos, there is a strong possibility that the Company will retain its cupos, from an accounting perspective, it will assume they retain no value after July 2024. Once the renewal process has begun and if it can be determined that the Company will be successful in its bid, then the Company will adjust its amortization prospectively. Operating rights are amortized over their remaining government mandated lives.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Upon the occurrence of a triggering event, the assessment of possible impairment of the Company’s intangibles will be based on the Company’s ability to recover the carrying value of its asset, which is determined by using the asset’s estimated undiscounted future cash flows. If these estimated undiscounted future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the excess of the asset’s carrying value over its estimated fair value. A significant amount of judgment is required in estimating the future cash flows and fair values of its tradenames, customer lists and operating rights. As of March 31, 2018 and December 31, 2017, there was no triggering event and the Company did not record an impairment for intangible assets.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i> </i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Long-Lived Assets</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company reviews its long-lived assets, principally its vessels, for impairment whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Upon the occurrence of a triggering event, the assessment of possible impairment is based on the Company’s ability to recover the carrying value of its asset, which is determined by using the asset’s estimated undiscounted future cash flows. If these estimated undiscounted future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the excess of the asset’s carrying value over its estimated fair value. A significant amount of judgment is required in estimating the future cash flows and fair values of its vessels. As of March 31, 2018 and December 31, 2017, there was no triggering event and the Company did not record an impairment of its long-lived assets.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Accounts Payable
and Accrued Expenses</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company records accounts payable and accrued expenses for the cost of such items when the service is provided or when the related product is delivered. The Company’s accounts payable and accrued expenses consist of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of </b></font><font style="font-family: 'times new roman', times, serif;"><br /><font style="font-size: 10pt;"><b>March 31,</b></font><br /><font style="font-size: 10pt;"><b>2018</b></font></font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of</b></font><font style="font-family: 'times new roman', times, serif;"><br /><font style="font-size: 10pt;"><b>December 31,</b></font><br /><font style="font-size: 10pt;"><b>2017</b></font></font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;" colspan="2"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Accrued other expense</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">7,045</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">7,001</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Accounts payable</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">4,321</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">7,791</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">New build liability</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times,
serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,817</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,730</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Employee liability</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,744</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,644</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Royalty payable</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,605</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,673</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Income tax liabilities</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,368</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,490</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Bonus compensation liabilty</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,276</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,736</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Travel certificate liability</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,128</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,120</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Refunds and commissions payable</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">926</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,805</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Accrued travel insurance expense</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times,
serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">472</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">432</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Total accounts payable and accrued expenses</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">24,702</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">30,422</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Fair Value Measurements and Disclosure</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Fair value is defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.5in; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level 1</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Quoted market prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at measurement date.</font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif;
vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level 2</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Quoted market prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable, either directly or indirectly. Fair value is determined through the use of models or other valuation methodologies.</font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level 3</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Significant unobservable inputs for assets or liabilities that cannot be corroborated by market data. Fair value is determined by the reporting entity’s own assumptions utilizing the best information available, and includes situations where there is little market activity for the investment.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -1in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The carrying amounts of cash and cash equivalents, accounts payable and accrued expenses, approximate fair value due to the short-term nature of these instruments.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The carrying value of long-term debt approximates fair value given that the terms of the agreement were comparable to the market as of March 31, 2018. As of March 31, 2018 and December 31, 2017, the Company had no other significant liabilities that were measured at fair value on a recurring basis.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The asset’s or liability’s fair value measurement within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Level 3 financial liabilities consist of obligations for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal;
-webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Income Taxes</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The measurement of net deferred tax assets is reduced by the amount of any tax benefit that, based on available evidence, is not expected to be realized, and a corresponding valuation allowance is established. The determination of the required valuation allowance against net deferred tax assets was made without taking into account the deferred tax liabilities created from the book and tax differences on indefinite-lived assets.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for income taxes using the asset and liability method, under which it recognizes deferred income taxes for the tax consequences attributable to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, as well as for tax loss carryforwards and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. The Company recognizes the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. The Company provides a valuation allowance against deferred tax assets if, based upon the weight of available evidence, the Company does not believe it is “more-likely-than-not” that some or all of the deferred tax assets will be realized. The Company will continue to evaluate the deferred tax asset valuation allowance balances in all of our foreign and U.S. companies to determine the appropriate level of valuation allowances.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company is subject to income taxes in both the U.S. and the non-U.S. jurisdictions in which it operates. The Company regularly assesses the potential outcome of current and future examinations in each of the taxing jurisdictions when determining the adequacy of the provision for income taxes. The Company has only recorded financial statement benefits for tax positions which it believes reflect the “more-likely-than-not” criteria of FASB’s authoritative guidance on accounting for uncertainty in income taxes, and it has established income tax reserves in accordance with this guidance where necessary. Once a financial statement benefit for a tax position is recorded or a tax reserve is established, the Company adjusts it only when there is more information available or when an event occurs necessitating a change. While the Company believes that the amount of the recorded financial statement benefits and tax reserves reflect the more-likely-than-not criteria, it is possible that the ultimate outcome of current or future examinations may result in a reduction to the tax benefits previously recorded on its condensed consolidated financial statements or may exceed the current income tax reserves in amounts that could be material. As of March 31, 2018, and December 31, 2017, the Company had a liability for unrecognized tax benefits of $0.4 million, which was included in other long-term liabilities. The Company’s policy is to record interest and penalties on uncertain tax positions as a component of income tax expense. During the three months ended March 31, 2018 and 2017, interest and penalties related to uncertain
tax positions included in income tax expense are not significant.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company is subject to tax audits in all jurisdictions for which it files tax returns. Tax audits by their very nature are often complex and can require several years to complete. Currently, there are no U.S. federal, state or foreign jurisdiction tax audits pending. The Company’s corporate U.S. federal and state tax returns for the current year and three prior years remain subject to examination by tax authorities and the Company’s foreign tax returns for the current year and four prior years remain subject to examination by tax authorities.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">The SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), codified as Accounting Standards Update (“ASU”) 2018-05, to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. SAB 118 is effective for reporting periods that include December 22, 2017. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in its financial statements as of December 31, 2017, resulting in additional tax expense of $12.7 million in that period. As the Company collects and prepares the necessary data, and interprets the Tax Act and any additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, it may make adjustments to the provisional amounts. Those adjustments may materially impact the Company’s provision for income taxes and effective tax rate in the period in which the adjustments are made. To date, management has not made any adjustments to the provisional amounts for the remeasurement of deferred tax assets/liabilities and the deemed repatriation of certain foreign subsidiary earnings. The accounting for the tax effects of the Tax Act will be completed in 2018.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Stock-Based Compensation</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company accounts for equity instruments issued to employees, non-employee directors or other service providers in accordance with accounting guidance that requires that awards are recorded at their fair value on the date of grant and are amortized over the service period of the award. The Company recognizes compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the equity instrument issued.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font:
10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Segment Reporting</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">We are primarily a specialty cruise operator with operations in two segments, Lindblad and Natural Habitat. We evaluate the performance of our business based largely on the results of our operating segments. The chief operating decision maker, or CODM, and management review operating results monthly, and base operating decisions on the total results at a consolidated level, as well as at a segment level. Our reports provided to the Board of Directors are at a consolidated level and also contain information regarding the separate results of both segments. Management performance and related compensation is primarily based on total results. While both segments have similar characteristics, the two operating and reporting segments cannot be aggregated because they fail to meet the requirements for aggregation.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Recent Accounting Pronouncements</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-12, <i>Derivatives and Hedging </i>(Topic 815) <i>Targeted Improvements to Accounting for Hedging Activities</i>. This guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. Update No. 2017-12 is effective for years beginning after December 15, 2018. Early adoption is permitted. Management is currently assessing the impact this guidance will have on the financial position or results of operations.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In February 2016, the FASB issued ASU No. 2016-02, <i>Leases</i> (Topic 842). The guidance requires the recognition of lease right of use assets and lease liabilities by lessees for those leases previously classified as operating. This guidance was issued to increase transparency and comparability among organizations by disclosing key information about leasing arrangements and requiring the recognition of right of use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. ASU 2016-02 is effective for years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the effect adoption of this guidance will have on its consolidated financial statements. The Company does not believe the adoption of this guidance will have a material impact on our cash flows or results of operations.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2;
widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Accounting Pronouncements Recently Adopted</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 34pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 34pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In 2014, the FASB issued ASU 2014-09, <i>Revenue from Contracts with Customers</i> (Topic 606). This ASU is based on the principle that revenue is recognized upon the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. There have been multiple clarifying ASU’s issued subsequent to ASU 2014-09. We adopted the guidance related to revenue recognition beginning January 1, 2018, using the modified retrospective transition method applied to those contracts which were not completed as of the adoption date. Prior periods have not been restated. The adoption of this guidance was not material to our financial position and results of operations.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 34pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2017, the FASB issued ASU No. 2017-04, <i>Intangibles and Othe</i>r (Topic 350): <i>Simplifying the Test for Goodwill Impairment</i>. The amendment was issued in response from stakeholders’ regarding the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities). Now the entity compares the fair value of the reporting unit with its carrying amount. The Company adopted this guidance beginning January 1, 2018, which did not have a material impact on our financial position or results of operations.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2017, the FASB issued ASU No. 2017-01, <i>Business Combinations</i> (Topic 805): <i>Clarifying the Definition of a Business</i>. The guidance was issued to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this Update provide a screen to determine when a set (inputs and processes that produce an output) is a business. The screen requires that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The Company adopted this guidance beginning January 1, 2018, which did not have a material impact on our financial position or results of operations.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 3 – LONG-TERM DEBT</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><font style="font-family: 'times new roman', times, serif;">As of <br />March 31, 2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><font style="font-family: 'times new roman', times, serif;">As of <br />December 31, 2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="10"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td colspan="10"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Principal</font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Discount and Deferred Financing Costs, net</font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Balance</font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Principal</font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Discount and Deferred Financing Costs, net</font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Balance</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 439px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Note payable</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times,
serif;">2,525</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">-</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,525</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,525</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">-</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,525</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Credit Facility</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">200,000</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(12,544</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">187,456</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">170,625</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(7,214</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">163,411</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Total long-term debt</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">202,525</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times,
serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">(12,544</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">189,981</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">173,150</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">(7,214</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">165,936</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Less current portion</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(1,500</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">-</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(1,500</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(1,750</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">-</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(1,750</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total long-term debt, non-current</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">201,025</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;
border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">(12,544</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">188,481</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">171,400</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">(7,214</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">164,186</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Credit Facility</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On March 27, 2018, the Company entered into a Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”) providing for a refinancing and amendment of the terms of the Company’s existing secured credit facility, dated as of March 7, 2016 (the “Superseded Agreement”).</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Amended Credit Agreement provides for a $200.0 million senior secured first lien term loan facility (the “Term Facility”), which represents an increase of $25.0 million from the senior secured first lien term loan facility under the Superseded Agreement. The Term Facility matures March 27, 2025. Consistent with the Superseded Agreement, the Amended Credit Agreement also provides for a $45.0 million senior secured incremental revolving credit facility (the “Revolving Facility”), which includes a $5.0 million letter of credit sub-facility. The Company’s obligations under the Amended Credit Agreement remain secured by substantially all of the assets of the Company.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color:
initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">The Company capitalized $4.2 million related to lender and third-party fees in connection with the Third Amended and Restated Credit Agreement. In addition, the entry into the Third Amended and Restated Credit Agreement was considered a debt modification with a partial extinguishment, as a result the Company incurred costs of $1.0 million during the three months ended March 31, 2018.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">Borrowings under the Term Facility will bear interest at an adjusted Intercontinental Exchange (“ICE”) Benchmark administration LIBOR plus a spread of 3.50%, which steps down to 3.25% if the Company’s debt rating from Moody’s and S&P are both B1 (stable) or better and BB (negative) or better, respectively. The interest rate at March 31, 2018 is 5.95%. Borrowings under the Revolving Facility will bear interest at an adjusted ICE Benchmark administration LIBOR plus a spread of 3.00%, or, at the option of the Company, an alternative base rate plus a spread of 2.00%. The Company is also required to pay a 0.5% annual commitment fee on undrawn amounts under the Revolving Credit Facility, which matures on March 27, 2023.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Restated Credit Agreement (i) requires the Company to satisfy certain financial covenants as set forth in the Amended Credit Agreement; (ii) limits the amount of indebtedness the Company may incur; (iii) limits the amount the Company may spend in connection with certain types of investments; (iv) requires the delivery of certain periodic financial statements and an operating budget and (v) requires the mortgaged vessels and related inventory to be maintained in good working condition. As of March 31, 2018, the Company was in compliance with the covenants.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Borrowings under the Revolving Credit Facility will be used for general corporate and working capital purposes and related fees and expenses. As of March 31, 2018, the Company had no borrowings under the Revolving Credit Facility.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">For the three months ended March 31, 2018 and 2017, deferred financing costs charged to interest expense was $0.6 million.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family:
'times new roman', times, serif; font-size: 10pt;"><b><i>Senior Secured Credit Agreement</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On January 8, 2018, the Company and its indirect, wholly-owned subsidiary (the “Borrower”) entered into a senior secured credit agreement (the “Export Credit Agreement”) with Citibank, N.A., London Branch (“Citi”) and Eksportkreditt Norge AS (together with Citi, the “Lenders”). Pursuant to the Export Credit Agreement, the Lenders have agreed to make available to the Borrower, at the Borrower’s option and subject to certain conditions, a loan in an aggregate principal amount not to exceed $107.7 million for the purpose of providing financing for up to 80% of the purchase price of the Company’s new ice class vessel, the <i>National Geographic Endurance,</i> targeted to be completed in January 2020. Seventy percent of the loan will be guaranteed by Garantiinstituttet for Eksportkreditt, the official export credit agency of Norway. If drawn upon, the loan will be made at the time of delivery of the vessel.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">At the Borrower’s election, the loan will bear interest either at a fixed interest rate effectively equal to 5.78% or a floating interest rate equal to three-month LIBOR plus a margin of 3.00% per annum. The loan will amortize quarterly based on a twelve-year profile, with 70% maturing over twelve years from drawdown, and 30% maturing over five years from drawdown. The loan will be secured by a first priority mortgage over the new vessel and the assignment of related insurances. The Export Credit Agreement also contains customary events of default and mandatory prepayment events for, among other things, non-payment, breach of covenants, default on certain other indebtedness, certain large judgments and a change of control of the Company or the Borrower. In addition to paying interest on any outstanding loans under the facility, the Borrower is required to pay customary coordination, arrangement, agency, collateral and commitment fees. Amounts drawn under the Export Credit Agreement may be voluntarily prepaid at any time subject to customary breakage costs. All obligations of the Borrower under the Export Credit Agreement are guaranteed by the Company.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Note Payable</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">On May 4, 2016, in connection with the Natural Habitat acquisition, Natural Habitat issued an unsecured promissory note to Benjamin L. Bressler, the founder of Natural Habitat, with an outstanding principal amount of $2.5 million due at maturity on December 31, 2020. The promissory note accrues interest at a rate of 1.44% annually, with interest payable every six months.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b>NOTE 4 – EMPLOYEE BENEFIT PLAN</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company has a 401(k) profit sharing plan and trust for its employees. The Company matches 30% of employee contributions up to annual maximum of $2,100 as of March 31, 2018 and 2017. For the three months ended March 31, 2018 and 2017, the Company’s benefit plan contribution was $0.1 million. The benefit plan contribution is included in general and administrative expenses on the accompanying condensed consolidated statements of operations.</p></div>
<div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 5 – STOCKHOLDERS’ EQUITY</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Capital Stock</i></b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company has 1,000,000 shares of preferred stock authorized, $0.0001 par value and 200,000,000 shares of common stock authorized, $0.0001 par value.</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Stock and Warrant Repurchase Plan</i></b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On November 2, 2016, the Company’s Board of Directors approved a $15.0 million increase to the Company’s existing stock and warrant repurchase plan (“Repurchase Plan”), to $35.0 million. This Repurchase Plan, which was authorized in November 2015, authorizes the Company to purchase from time to time the Company’s outstanding common stock and warrants. Any shares and warrants purchased will be retired. The Repurchase Plan has no time deadline and will continue until otherwise modified or terminated at the sole discretion of the Company’s Board of Directors. The repurchases exclude shares repurchased to settle statutory employee tax withholding related to the exercise of stock options and vesting of stock awards. All repurchases were made using cash resources. During the three months ended March 31, 2018 the Company repurchased 9,030 shares of common stock for $0.1 million and 568,446 warrants for $0.8 million. The Company has cumulatively repurchased 864,806 shares of common stock for $8.1 million and 6,011,926 warrants for $14.7 million, since plan inception. The balance as of April 30, 2018 for the repurchase plan was $12.1 million.</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i> </i></b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>2018 Long-Term Incentive Compensation</i></b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal;
orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In March 2017, the Company’s compensation committee approved awards of restricted stock units (“RSUs”) and performance share units (“PSUs”) to key employees under the Company’s 2015 Long-Term Incentive Plan. The Company granted 132,741 RSUs on March 30, 2018 at a grant price of $10.27. The RSU’s will vest in equal installments on each of the first three anniversaries of the grant date, subject to the recipient’s continued employment or service with us or our subsidiaries on the applicable vesting date.</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The PSUs are performance-vesting equity incentive awards that will be earned based on our performance against metrics relating to annual Adjusted EBITDA, annual revenue, and guest satisfaction. Awards will vest after a three-year performance period and may be earned at a level ranging from 0%-200% of the number of PSUs granted, depending on performance. On March 30, 2018, the Company awarded 88,851 of targeted PSUs with the number of shares determined based upon the closing price of our common stock on March 30, 2018 of $10.27.</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i> </i></b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Stock Options</i></b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">During the three months ended March 31, 2018, 955,424 stock options were exercised at an exercise price of $1.76 per share in a cashless transaction.</font></p>
</div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 6 – COMMITMENTS AND CONTINGENCIES</b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Fleet Expansion</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">On December 2, 2015, the Company entered into two separate Vessel Construction Agreements, (collectively, the “Agreements”) with Ice Floe, LLC, a Washington limited liability company doing business as Nichols Brothers Boat Builders (the “Builder”). The Agreements provide for the Builder to construct two new 236-foot 100-passenger cruise vessels.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The first vessel, the <i>National Geographic Quest</i>, was delivered in July 2017. The Company amended the agreement for the second vessel, the <i>National Geographic Venture</i>, in October 2017. The current contract price is $57.3 million and the vessel is scheduled to be completed in the fourth quarter of 2018, subject to extension for certain events, such as change orders. As of March 31, 2018, the Company has paid Ice Floe, LLC $34.8 million related to the <i>National Geographic Venture</i>. The Company may terminate the applicable Agreement in the event the builder fails to deliver the vessel within 180 days of the applicable due date or the builder becomes insolvent or otherwise bankrupt. The Agreement also contains customary representations, warranties, covenants and indemnities.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In November 2017, the Company entered into an agreement with Ulstein Verft to construct a polar ice class vessel, the <i>National Geographic Endurance,</i> with a total purchase price of 1,066.0 million Norwegian Kroner (NOK). Subsequently, the Company exercised its right to make payments in United States Dollars, which resulted in a purchase price of $134.6 million, including hedging costs. The purchase price is subject to potential adjustments from contract specifications for variations in speed, deadweight, fuel consumption and delivery date, and is due in installments. The first twenty percent of the purchase price was paid shortly after execution of the Agreement with the remaining eighty percent due upon delivery and acceptance of the vessel. The vessel is targeted to be delivered in January 2020, with potential accelerated delivery to November 2019. The contract also includes options to build two additional ice class vessels.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font
style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Royalty Agreement – National Geographic</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company is engaged in an alliance and license agreement with National Geographic, which allows the Company to use the National Geographic name and logo. In return for these rights, the Company is charged a royalty fee. The royalty fee is included within selling and marketing expense on the accompanying condensed consolidated statements of operations. The amount is calculated based upon a percentage of certain ticket revenues less travel agent commission, including the revenues received from cancellation fees and any revenues received from the sale of voyage extensions. A voyage extension occurs when a guest extends his or her trip with pre- or post-voyage hotel nights and is included within tour revenues on the accompanying condensed consolidated statements of operations. The royalty expense is recognized at the time of revenue recognition. See Note 2 – Summary of Significant Accounting Policies for a description of the Company’s revenue recognition policy. Royalty expense for the three months ended March 31, 2018 and 2017 totaled $1.6 million and $1.2 million, respectively.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The balances outstanding to National Geographic as of March 31, 2018 and December 31, 2017 are $1.6 million and $1.7 million, respectively, and are included in accounts payable and accrued expenses on the accompanying condensed consolidated balance sheets.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Royalty Agreement – World Wildlife Fund</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Natural Habitat has a license agreement with World Wildlife Fund, which allows it to use the WWF name and logo. In return for these rights, Natural Habitat is charged a royalty fee and a fee based on annual gross sales. The fees are included within selling and marketing expense on the accompanying condensed consolidated statements of operations. The annual royalty payment and gross sales fees are paid on a quarterly basis. For the three months ended March 31, 2018 and 2017, these fees totaled $0.2 million.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i> </i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Charter Commitments</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size:
10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">From time to time, the Company enters into agreements to charter vessels onto which it holds its tours and expeditions. Future minimum payments on its charter agreements as of March 31, 2018 are as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b> </b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">For the years ended December 31,</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Amount</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1379px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">2018 (nine months)</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">6,027</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">2019</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">8,451</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">2020</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">130</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">14,608</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"></font></td></tr></table></div>
<div>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>NOTE 7 – SEGMENT INFORMATION</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company evaluates the performance of its business segments based largely on tour revenues and operating income, and results of the segments without allocating other income and expenses, net, income taxes and interest expense, net. For the three months ended March 31, 2018 and 2017 operating results were:</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><font style="font-family: 'times new roman', times, serif;">For the three months ended <br />March 31,</font></td>
<td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td>
<td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">2018</font></td>
<td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">2017</font></td>
<td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Change</font></td>
<td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">%</font></td>
<td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
</tr>
<tr style="vertical-align: bottom;">
<td style="font-weight: bold;"><font style="font-family: 'times new roman', times, serif;">Tour revenues:</font></td>
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: center;" colspan="14"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td>
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="width: 801.67px; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Lindblad</font></td>
<td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">70,453</font></td>
<td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">53,202</font></td>
<td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="width:
15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">17,251</font></td>
<td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">32</font></td>
<td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">%</font></td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Natural Habitat</font></td>
<td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">11,957</font></td>
<td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">9,926</font></td>
<td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">2,031</font></td>
<td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">20</font></td>
<td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">%</font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total tour revenues</font></td>
<td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">82,410</font></td>
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">63,128</font></td>
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">19,282</font></td>
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">31</font></td>
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">%</font></td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;">Operating income:</font></td>
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right;"><font style="font-family: 'times new roman',
times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Lindblad</font></td>
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">13,439</font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,266</font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">12,173</font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NM</font></td>
<td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Natural Habitat</font></td>
<td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">932</font></td>
<td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">99</font></td>
<td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">833</font></td>
<td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NM</font></td>
<td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceeff;">
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total operating income</font></td>
<td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">14,371</font></td>
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">1,365</font></td>
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times,
serif;"> </font></td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">13,006</font></td>
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
<td style="text-align: right; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NM</font></td>
<td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">As of March 31, 2018 and December 31, 2017, total assets for the Lindblad segment and for the Natural Habitat segment were $395.2 million and $53.6 million, respectively, and $382.7 million and $49.6 million, respectively. As of March 31, 2018 and December 31, 2017, there were $4.6 million and $4.8 million, respectively, of intangibles, net related to the Lindblad segment. As of March 31, 2018 and December 31, 2017, there was $22.1 million in goodwill and $4.6 million and $4.8 million in intangibles, respectively, that were related to the Natural Habitat segment.</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">For the Lindblad segment, capital expenditures for the three months ended March 31, 2018 and 2017 were $14.4 million and $22.8 million, respectively. Depreciation and amortization expense for the three months ended March 31, 2018 and 2017 was $4.7 million and $3.4 million, respectively. For the three months ended March 31, 2018 and 2017, amortization expense related to operating rights was $0.2 million.</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">For the Natural Habitat segment for the three months ended March 31, 2018 and 2017, amortization of tradenames and customer lists was $0.2 million. For the three months ended March 31, 2018 and 2017 there was $0.4 million and $0.3 million in depreciation and amortization expense, respectively, and $0.1 million in capital expenditures.</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">There were $1.0 million and $0.2 million in intercompany tour revenues between the Lindblad and Natural Habitat segments eliminated in consolidation for the three months ended March 31, 2018 and 2017, respectively.</font></p>
</div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Basis of Presentation</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The accompanying unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding unaudited interim financial information. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial statements for the periods presented. Operating results for the periods presented are not necessarily indicative of the results of operations to be expected for the full year due to seasonality and other factors. Certain information and footnote disclosures normally included in the condensed consolidated financial statements in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. All intercompany balances and transactions have been eliminated in these unaudited condensed consolidated financial statements. Accordingly, these unaudited condensed consolidated financial statements and footnotes should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto for the year ended December 31, 2017 contained in the Annual Report on Form 10-K filed with the SEC on March 2, 2018.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Principles of Consolidation</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The condensed consolidated financial statements of the Company include Lindblad Expeditions Holdings, Inc. and its consolidated subsidiaries.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Reclassifications</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">We have reclassified certain prior period amounts to conform to the current period presentation, with no impact on consolidated net income or cash flows.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Use of Estimates</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets, liabilities, revenues and expenses. Actual results could differ from such estimates. Management estimates include determining the estimated lives of long-lived assets, determining the fair value of assets acquired and liabilities assumed in business combinations, the fair value of the Company’s common stock and related warrants, the valuation of securities underlying stock-based compensation, income tax expense, the valuation of deferred tax assets, the value of contingent consideration and assessing its litigation, other legal claims and contingencies. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period that they are determined to be necessary.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Revenue Recognition</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Revenues are measured based on consideration specified in our contracts with guests and are recognized as the related performance obligations are satisfied.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The majority of our revenues are derived from guest ticket contracts which are reported as tour revenues in our condensed consolidated statements of operations. Our primary performance obligation under this contract is to provide an expedition and may include pre- and post-expedition excursions, hotel accommodations, land-based expeditions and air transportation to and from the ships. Upon satisfaction of these performance obligations, the Company recognizes revenue over the duration of each expedition.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Tour revenues also include revenues from the sale of goods and services onboard our ships, cancellation fees and trip insurance. Revenues from the sale of goods and services rendered onboard are recognized upon purchase. Guest cancellation fees are recognized as tour revenues at the time of the cancellation. The Company records a liability for estimated trip insurance claims based on the Company’s claims history. Proceeds received from trip insurance premiums in excess of this liability are recorded as revenue in the period in which they are received.</p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b><i>Customer Deposits and Contract Liabilities</i></b></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><b><i> </i></b></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company’s guests remit deposits in advance of tour embarkation. Guest deposits consist of guest ticket revenues as well as revenues from the sale of pre- and post-expedition excursions, hotel accommodations, land-based expeditions and air transportation to and from the ships. Guest deposits represent unearned revenues and are reported as unearned passenger revenues in the condensed consolidated balance sheet when received and are subsequently recognized as tour revenue during the duration of the expedition. Accounting Standards Codification, <i>Revenue from Contracts with Customers</i> (Topic 606) defines a “contract liability” as an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer. We do not consider guest deposits to be a contract liability until the guest no longer has the right, resulting from the passage of time, to cancel their reservation and receive a full refund. Unearned passenger revenues presented in our condensed consolidated balance sheets include contract liabilities of $45.6 million and $40.3 million as of March 31, 2018 and December 31, 2017, respectively. During the three months ended March 31, 2018, we recognized revenues related to our contract liabilities as of December 31, 2017 of $38.3 million.</p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Earnings per Common Share</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">Earnings per common share is computed by dividing net income available to common shareholders, by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common shares outstanding and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the dilutive incremental common shares associated with restricted stock awards or issuable upon the exercise of stock options, using the treasury stock method.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">For the three months ended March 31, 2018 and 2017, the Company calculated earnings per share as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font-family: 'times new roman', times, serif;">For the three months ended<br />March 31,</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">(In thousands, except share and per share data)</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="6"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Net income available to common stockholders</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width:
16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">10,796</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">596</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td><font style="font-family: 'times new roman', times, serif;">Weighted average shares outstanding:</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td><font style="font-family: 'times new roman', times, serif;">Total weighted average shares outstanding, basic</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">45,274,540</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">44,707,273</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Dilutive potential common shares</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">393,025</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">1,054,665</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total weighted average shares outstanding, diluted</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">45,667,565</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">45,761,938</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Net income per share available to Lindblad</font></td><td><font style="font-family:
'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-left: 20pt;"><font style="font-family: 'times new roman', times, serif;">Basic</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.24</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.01</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-left: 20pt;"><font style="font-family: 'times new roman', times, serif;">Diluted</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.24</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.01</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company’s Board of Directors and stockholders approved a 2015 Long-Term Incentive Plan, which includes the authority to issue up to 2,500,000 shares of Lindblad common stock. As of March 31, 2018, options to purchase an aggregate of 220,000 shares of the Company’s common stock with a weighted average exercise price of $9.63 per share were outstanding.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;">As of March 31, 2018  and 2017, 10,088,074 and 10,673,015 warrants, respectively, expiring July 8, 2020 to purchase common stock at a price of $11.50 per share were outstanding. These warrants were anti-dilutive and were not included in the calculation of diluted weighted average shares  outstanding.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Cash and Cash Equivalents</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The Company considers all highly liquid instruments with an original maturity of three months or less, as well as deposits in financial institutions, to be cash and cash equivalents.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Concentration of Credit Risk</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The Company maintains cash in several financial institutions in the U.S. and other countries which, at times, may exceed the federally insured limits. Accounts held in the U.S. are guaranteed by the Federal Deposit Insurance Corporation up to certain limits. As of March 31, 2018 and December 31, 2017, the Company’s cash held in financial institutions outside of the U.S. amounted to $6.7 million and $4.1 million, respectively.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Restricted Cash and Marketable Securities</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Restricted cash and marketable securities consist of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of <br />March 31,<br />2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of<br />December 31,<br />2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td colspan="2"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Federal Maritime Commission escrow</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">17,383</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">4,186</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Credit card processor reserves</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,530</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,530</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Certificates of deposit and other restricted securities</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times,
serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">1,324</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">1,341</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total restricted cash and marketable securities</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">20,237</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">7,057</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The amounts held in restricted cash and marketable securities represent principally funds required to be held in certificates of deposit by certain vendors and regulatory agencies and are classified as restricted assets since such amounts cannot be used by the Company until the restrictions are removed by those vendors and regulatory agencies. Interest income is recognized when earned.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company has classified marketable securities, principally money market funds, as trading securities which are recorded at market value. Unrealized gains and losses are included in current operations. Gains and losses on the disposition of securities are recognized by the specific identification method in the period in which they occur.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In order to operate guest tour expedition vessels from U.S. ports, the Company is required to post a performance bond with the Federal Maritime Commission or escrow all unearned guest deposits plus an additional 10% in restricted accounts. To satisfy this requirement, the Company entered into an agreement with a financial institution to escrow all unearned guest revenues collected for sailings from U.S. ports.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px;
text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">At March 31, 2018 and December 31, 2017, a cash reserve of approximately $1.5 million is required for credit card deposits by third-party credit card processors.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Amounts in the escrow accounts include cash, certificates of deposit and marketable securities. Cost of these short-term investments approximates fair value.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Marine Operating Supplies and Inventories</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Marine operating supplies consist primarily of fuel, provisions, spare parts, items required for maintenance and supplies used in the operation of marine expeditions. Marine operating supplies are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Inventories consist primarily of gift shop merchandise and other items for resale and are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Prepaid Expenses and Other Current Assets</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company records prepaid expenses and other current assets at cost and expenses them in the period the services are provided or the goods are delivered. The Company’s prepaid expenses and other current assets consist of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of <br />March 31,<br />2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of<br />December 31,<br />2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;" colspan="2"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid tour expenses</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">9,938</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">9,846</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid air expense</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,546</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,621</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times,
serif;">Prepaid client insurance</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,560</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,525</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid marketing, commissions and other expenses</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,511</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,495</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid corporate insurance</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,457</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,033</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid port agent fees</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">840</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,022</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Prepaid income taxes</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">809</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">809</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Total prepaid expenses</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">22,661</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">21,351</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"></font></td></tr></table></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Property and Equipment</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization were computed using the straight line method over the estimated useful lives of the assets, as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Years</b></font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Vessels and vessel improvements</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">15-25</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0px; width: 1003px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Furniture and equipment</font></td><td style="padding: 0px; width: 16px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; width: 548px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5</font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Computer hardware and software</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Leasehold improvements, including port facilities</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Shorter of lease term or related asset life</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Vessel improvement costs that add value to the Company’s vessels are capitalized and depreciated over the shorter of the improvements or the vessel’s estimated remaining useful life, while costs of repairs and maintenance, including minor improvement costs and drydock expenses, are charged to expense as incurred
and included in cost of tours. Drydock costs primarily represent planned maintenance activities that are incurred when a vessel is taken out of service. For U.S. flagged ships, the statutory requirement is an annual docking and U.S. Coast Guard inspections, normally conducted in drydock. Internationally flagged ships have scheduled dockings approximately every 12 months, for a period of up to three to six weeks.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Goodwill</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The authoritative guidance requires that goodwill be assessed annually for impairment. The Company completed the annual impairment test as of September 30, 2017 with no indication of goodwill impairment. Future impairment tests will be performed annually as of September 30, or more frequently if warranted. As of March 31, 2018 there was no indication of impairment.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Intangibles, net</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Intangibles, net include tradenames, customer lists and operating rights. Tradenames are words, symbols, or other devices used in trade or business to indicate the source of products and to distinguish it from other products and are registered with government agencies and are protected legally by continuous use in commerce. Customer lists are established relationships with existing customers that resulted in repeat purchases and customer loyalty. Based on the Company’s analysis, amortization of the tradenames and customer lists were computed using the estimated useful lives of 15 and 5 years, respectively</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The Company operates two vessels year-round in the Galápagos National Park in Ecuador: the <i>National Geographic Endeavour II</i> with 95 berths and the <i>National Geographic Islander</i> with 47 berths. In order to operate these vessels within the park, the Company is required to have in its possession cupos (licenses) sufficient to cover the total available berths on each vessel.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">In June 2015, a new Ecuadorian Special Law for Protected Areas was approved and updated in November 2015. A Presidential Decree issued by President Correa of Ecuador in November 2015 established that cupos, which were in effect since July 2015, will have a validity of nine years. The Company’s operating rights are up for renewal in July 2024 and, based on the new law, the Company will begin the renewal process in 2020. The current “owners” of the cupos will have the opportunity to re-apply for them, but any other enterprise or individual will have the opportunity to bid for the cupos. All bidders must present proof that they fulfill the conditions to properly utilize the license (access to a vessel, experience in tourism, proven environmental behavior, marketing, etc.). While the Company believes that, based on the expected criteria to retain cupos and its past operating history in the Galápagos, there is a strong possibility that the Company will retain its cupos, from an accounting perspective, it will assume they retain no value after July 2024. Once the renewal process has begun and if it can be determined that the Company will be successful in its bid, then the Company will adjust its amortization prospectively. Operating rights are amortized over their remaining government mandated lives.</p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Upon the occurrence of a triggering event, the assessment of possible impairment of the Company’s intangibles will be based on the Company’s ability to recover the carrying value of its asset, which is determined by using the asset’s estimated undiscounted future cash flows. If these estimated
undiscounted future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the excess of the asset’s carrying value over its estimated fair value. A significant amount of judgment is required in estimating the future cash flows and fair values of its tradenames, customer lists and operating rights. As of March 31, 2018 and December 31, 2017, there was no triggering event and the Company did not record an impairment for intangible assets.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Long-Lived Assets</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The Company reviews its long-lived assets, principally its vessels, for impairment whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Upon the occurrence of a triggering event, the assessment of possible impairment is based on the Company’s ability to recover the carrying value of its asset, which is determined by using the asset’s estimated undiscounted future cash flows. If these estimated undiscounted future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the excess of the asset’s carrying value over its estimated fair value. A significant amount of judgment is required in estimating the future cash flows and fair values of its vessels. As of March 31, 2018 and December 31, 2017, there was no triggering event and the Company did not record an impairment of its long-lived assets.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Accounts Payable and Accrued Expenses</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">The Company records accounts payable and accrued expenses for the cost of such items when the service is provided or when the related product is delivered. The Company’s accounts payable and accrued expenses consist of the following:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of </b></font><font style="font-family: 'times new roman', times, serif;"><br /><font style="font-size: 10pt;"><b>March 31,</b></font><br /><font style="font-size: 10pt;"><b>2018</b></font></font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of</b></font><font style="font-family: 'times new roman', times, serif;"><br /><font style="font-size: 10pt;"><b>December 31,</b></font><br /><font style="font-size: 10pt;"><b>2017</b></font></font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;" colspan="2"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Accrued other expense</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">7,045</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">7,001</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Accounts payable</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">4,321</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">7,791</font></td><td style="text-align: left;"><font
style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">New build liability</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,817</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,730</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Employee liability</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,744</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,644</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Royalty payable</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,605</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,673</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Income tax liabilities</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,368</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,490</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Bonus compensation liabilty</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,276</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,736</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Travel certificate liability</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,128</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,120</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Refunds and commissions payable</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">926</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,805</font></td><td
style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Accrued travel insurance expense</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">472</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">432</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Total accounts payable and accrued expenses</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">24,702</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">30,422</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"></font></td></tr></table></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Fair Value Measurements and Disclosure</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Fair value is defined as an exit price, representing the amount that would be received upon the sale of an asset or payment to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows:</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; width: 0.5in; text-align: justify; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Level 1</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Quoted market prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at measurement date.</font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Level 2</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Quoted market prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable, either directly or indirectly. Fair value is determined through the use of models or other valuation methodologies.</font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></td></tr><tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top; font-stretch: normal;"><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Level 3</font></td><td style="font: 10pt/normal 'times new roman', times, serif; text-align: justify; font-stretch: normal;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Significant unobservable inputs for assets or liabilities that cannot be corroborated by market data. Fair value is determined by the reporting entity’s own assumptions utilizing the best information available, and includes situations where there is little market activity for the investment.</font></td></tr></table><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: -1in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times,
serif; font-stretch: normal;">The carrying amounts of cash and cash equivalents, accounts payable and accrued expenses, approximate fair value due to the short-term nature of these instruments.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The carrying value of long-term debt approximates fair value given that the terms of the agreement were comparable to the market as of March 31, 2018. As of March 31, 2018 and December 31, 2017, the Company had no other significant liabilities that were measured at fair value on a recurring basis.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The asset’s or liability’s fair value measurement within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Level 3 financial liabilities consist of obligations for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Income Taxes</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The measurement of net deferred tax assets is reduced by the amount of any tax benefit that, based on available evidence, is not expected to be realized, and a corresponding valuation allowance is established. The determination of the required valuation allowance against net deferred tax assets was made without taking into account the deferred tax liabilities created from the book and tax differences on indefinite-lived assets.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The Company accounts for income taxes using the asset and liability method, under which it recognizes deferred income taxes for the tax consequences attributable to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, as well as for tax loss carryforwards and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. The Company recognizes the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. The Company provides a valuation allowance against deferred tax assets if, based upon the weight of available evidence, the Company does not believe it is “more-likely-than-not” that some or all of the deferred tax assets will be realized. The Company will continue to evaluate the deferred tax asset valuation allowance balances in all of our foreign and U.S. companies to determine the appropriate level of valuation allowances.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The Company is subject to income taxes in both the U.S. and the non-U.S. jurisdictions in which it operates. The Company regularly assesses the potential outcome of current and future examinations in each of the taxing jurisdictions when determining the adequacy of the provision for income taxes. The Company has only recorded financial statement benefits for tax positions which it believes reflect the “more-likely-than-not” criteria of FASB’s authoritative guidance on accounting for uncertainty in income taxes, and it has established income tax reserves in accordance with this guidance where necessary. Once a financial statement benefit for a tax position is recorded or a tax reserve is established, the Company adjusts it only when there is more information available or when an event occurs necessitating a change. While the Company believes that the amount of the recorded financial statement benefits and tax reserves reflect the more-likely-than-not criteria, it is possible that the ultimate outcome of current or future examinations may result in a reduction to the tax benefits previously recorded on its condensed consolidated financial statements or may exceed the current income tax reserves in amounts that could be material. As of March 31, 2018, and December 31, 2017, the Company had a liability for unrecognized tax benefits of $0.4 million, which was included in other long-term liabilities. The Company’s policy is to record interest and penalties on uncertain tax positions as a component of income tax expense. During the three months ended March 31, 2018 and 2017, interest and penalties related to uncertain tax positions included in income tax expense are not significant.</font></p><p style="font: 10pt/normal 'times new
roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The Company is subject to tax audits in all jurisdictions for which it files tax returns. Tax audits by their very nature are often complex and can require several years to complete. Currently, there are no U.S. federal, state or foreign jurisdiction tax audits pending. The Company’s corporate U.S. federal and state tax returns for the current year and three prior years remain subject to examination by tax authorities and the Company’s foreign tax returns for the current year and four prior years remain subject to examination by tax authorities.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0pt 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), codified as Accounting Standards Update (“ASU”) 2018-05, to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. SAB 118 is effective for reporting periods that include December 22, 2017. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in its financial statements as of December 31, 2017, resulting in additional tax expense of $12.7 million in that period. As the Company collects and prepares the necessary data, and interprets the Tax Act and any additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, it may make adjustments to the provisional amounts. Those adjustments may materially impact the Company’s provision for income taxes and effective tax rate in the period in which the adjustments are made. To date, management has not made any adjustments to the provisional amounts for the remeasurement of deferred tax assets/liabilities and the deemed repatriation of certain foreign subsidiary earnings. The accounting for the tax effects of the Tax Act will be completed in 2018.</p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Stock-Based Compensation</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">The Company accounts for equity instruments issued to employees, non-employee directors or other service providers in accordance with accounting guidance that requires that awards are recorded at their fair value on the date of grant and are amortized over the service period of the award. The Company recognizes compensation costs on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the equity instrument issued.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"><b><i>Segment Reporting</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font: 10pt/normal 'times new roman', times, serif; font-stretch: normal;">We are primarily a specialty cruise operator with operations in two segments, Lindblad and Natural Habitat. We evaluate the performance of our business based largely on the results of our operating segments. The chief operating decision maker, or CODM, and management review operating results monthly, and base operating decisions on the total results at a consolidated level, as well as at a segment level. Our reports provided to the Board of Directors are at a consolidated level and also contain information regarding the separate results of both segments. Management performance and related compensation is primarily based on total results. While both segments have similar characteristics, the two operating and reporting segments cannot be aggregated because they fail to meet the requirements for aggregation.</font></p></div>
<div><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Recent Accounting Pronouncements</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-12, <i>Derivatives and Hedging </i>(Topic 815) <i>Targeted Improvements to Accounting for Hedging Activities</i>. This guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. Update No. 2017-12 is effective for years beginning after December 15, 2018. Early adoption is permitted. Management is currently assessing the impact this guidance will have on the financial position or results of operations.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In February 2016, the FASB issued ASU No. 2016-02, <i>Leases</i> (Topic 842). The guidance requires the recognition of lease right of use assets and lease liabilities by lessees for those leases previously classified as operating. This guidance was issued to increase transparency and comparability among organizations by disclosing key information about leasing arrangements and requiring the recognition of right of use (“ROU”) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. ASU 2016-02 is effective for years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the effect adoption of this guidance will have on its consolidated financial statements. The Company does not believe the adoption of this guidance will have a material impact on our cash flows or results of operations.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b><i>Accounting Pronouncements Recently Adopted</i></b></font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 34pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 34pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In 2014, the FASB issued ASU 2014-09, <i>Revenue from Contracts with Customers</i> (Topic 606). This ASU is based on the principle that revenue is recognized upon the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. There have been multiple clarifying ASU’s issued subsequent to ASU 2014-09. We adopted the guidance related to revenue recognition beginning January 1, 2018, using the modified retrospective transition method applied to those contracts which were not completed as of the adoption date. Prior periods have not been restated. The adoption of this guidance was not material to our financial position and results of operations.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 34pt; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2;
font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2017, the FASB issued ASU No. 2017-04, <i>Intangibles and Othe</i>r (Topic 350): <i>Simplifying the Test for Goodwill Impairment</i>. The amendment was issued in response from stakeholders’ regarding the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities). Now the entity compares the fair value of the reporting unit with its carrying amount. The Company adopted this guidance beginning January 1, 2018, which did not have a material impact on our financial position or results of operations.</font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"> </font></p><p style="font: 10pt/normal 'times new roman', times, serif; margin: 0px; text-align: justify; color: #000000; text-transform: none; text-indent: 0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">In January 2017, the FASB issued ASU No. 2017-01, <i>Business Combinations</i> (Topic 805): <i>Clarifying the Definition of a Business</i>. The guidance was issued to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this Update provide a screen to determine when a set (inputs and processes that produce an output) is a business. The screen requires that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The Company adopted this guidance beginning January 1, 2018, which did not have a material impact on our financial position or results of operations.</font></p></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="6"><font style="font-family: 'times new roman', times, serif;">For the three months ended<br />March 31,</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">(In thousands, except share and per share data)</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="6"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Net income available to common stockholders</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">10,796</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">596</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td><font style="font-family: 'times new roman', times, serif;">Weighted average shares outstanding:</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td><font style="font-family: 'times new roman', times, serif;">Total weighted average shares outstanding, basic</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">45,274,540</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">44,707,273</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Dilutive potential common shares</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">393,025</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;
border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">1,054,665</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total weighted average shares outstanding, diluted</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">45,667,565</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">45,761,938</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Net income per share available to Lindblad</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding-left: 20pt;"><font style="font-family: 'times new roman', times, serif;">Basic</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.24</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.01</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-left: 20pt;"><font style="font-family: 'times new roman', times, serif;">Diluted</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.24</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">0.01</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"></font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of <br />March 31,<br />2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of<br />December 31,<br />2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td colspan="2"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Federal Maritime Commission escrow</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">17,383</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">4,186</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Credit card processor reserves</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,530</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,530</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Certificates of deposit and other restricted securities</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">1,324</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">1,341</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total restricted cash and marketable securities</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">20,237</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times
new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">7,057</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"></font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of <br />March 31,<br />2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">As of<br />December 31,<br />2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;" colspan="2"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid tour expenses</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">9,938</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">9,846</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid air expense</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,546</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,621</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid client insurance</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,560</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,525</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid marketing, commissions and other expenses</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,511</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,495</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid corporate insurance</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,457</font></td><td style="text-align: left;"><font style="font-family:
'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,033</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Prepaid port agent fees</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">840</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,022</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Prepaid income taxes</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">809</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">809</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Total prepaid expenses</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">22,661</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">21,351</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"></font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>Years</b></font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Vessels and vessel improvements</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">15-25</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0px; width: 1003px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Furniture and equipment</font></td><td style="padding: 0px; width: 16px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; width: 548px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5</font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Computer hardware and software</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">5</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Leasehold improvements, including port facilities</font></td><td style="padding: 0px; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding: 0px; text-align: center; text-indent: 0px;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">Shorter of lease term or related asset life</font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of </b></font><font style="font-family: 'times new roman', times, serif;"><br /><font style="font-size: 10pt;"><b>March 31,</b></font><br /><font style="font-size: 10pt;"><b>2018</b></font></font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;"><b>As of</b></font><font style="font-family: 'times new roman', times, serif;"><br /><font style="font-size: 10pt;"><b>December 31,</b></font><br /><font style="font-size: 10pt;"><b>2017</b></font></font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;" colspan="2"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1191px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Accrued other expense</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">7,045</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">7,001</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Accounts payable</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">4,321</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">7,791</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">New build liability</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,817</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,730</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Employee liability</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,744</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,644</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Royalty payable</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new
roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,605</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,673</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Income tax liabilities</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,368</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,490</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Bonus compensation liabilty</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,276</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">3,736</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Travel certificate liability</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,128</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,120</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Refunds and commissions payable</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">926</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,805</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Accrued travel insurance expense</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">472</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">432</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Total accounts payable and accrued expenses</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">24,702</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new
roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">30,422</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"></font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><font style="font-family: 'times new roman', times, serif;">As of <br />March 31, 2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="10"><font style="font-family: 'times new roman', times, serif;">As of <br />December 31, 2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="10"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td colspan="10"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Principal</font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Discount and Deferred Financing Costs, net</font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Balance</font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Principal</font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Discount and Deferred Financing Costs, net</font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Balance</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 439px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">Note payable</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,525</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">-</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family:
'times new roman', times, serif;">2,525</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,525</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">-</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">2,525</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Credit Facility</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">200,000</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(12,544</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">187,456</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">170,625</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(7,214</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">163,411</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">Total long-term debt</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">202,525</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">(12,544</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">189,981</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times,
serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">173,150</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">(7,214</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">165,936</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">Less current portion</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(1,500</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">-</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(1,500</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(1,750</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">-</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(1,750</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total long-term debt, non-current</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">201,025</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">(12,544</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font
style="font-family: 'times new roman', times, serif;">188,481</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">171,400</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">(7,214</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">)</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">164,186</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"></font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: left; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">For the years ended December 31,</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Amount</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="2"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 1379px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">2018 (nine months)</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">6,027</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">2019</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">8,451</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">2020</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">130</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">14,608</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"></font></td></tr></table></div>
<div><table style="font: 10pt/normal 'times new roman', times, serif; width: 1567px; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="14"><font style="font-family: 'times new roman', times, serif;">For the three months ended <br />March 31,</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">(In thousands)</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">2018</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">2017</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">Change</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;" colspan="2"><font style="font-family: 'times new roman', times, serif;">%</font></td><td style="padding-bottom: 1.5pt; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><font style="font-family: 'times new roman', times, serif;">Tour revenues:</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: center;" colspan="14"><font style="font-family: 'times new roman', times, serif;">(unaudited)</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="width: 801.67px; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Lindblad</font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">70,453</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 142px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">53,202</font></td><td style="width: 16px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">17,251</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="width: 141px; text-align: right;"><font style="font-family: 'times new roman', times, serif;">32</font></td><td style="width: 15px; text-align: left;"><font style="font-family: 'times new roman', times, serif;">%</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Natural Habitat</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">11,957</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font
style="font-family: 'times new roman', times, serif;">9,926</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">2,031</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">20</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;">%</font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total tour revenues</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">82,410</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">63,128</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">19,282</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">31</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">%</font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; font-weight: bold;"><font style="font-family: 'times new roman', times, serif;">Operating income:</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Lindblad</font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">13,439</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">1,266</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif;">12,173</font></td><td
style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NM</font></td><td style="text-align: left;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: white;"><td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt;"><font style="font-family: 'times new roman', times, serif;">Natural Habitat</font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">932</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">99</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 1.5pt; border-bottom-style: solid;"><font style="font-family: 'times new roman', times, serif;">833</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NM</font></td><td style="text-align: left; padding-bottom: 1.5pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td></tr><tr style="vertical-align: bottom; background-color: #cceeff;"><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;">Total operating income</font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">14,371</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">1,365</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">$</font></td><td style="text-align: right; border-bottom-color: black; border-bottom-width: 4pt; border-bottom-style: double;"><font style="font-family: 'times new roman', times, serif;">13,006</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"> </font></td><td style="text-align: right; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif; font-size: 10pt;">NM</font></td><td style="text-align: left; padding-bottom: 4pt;"><font style="font-family: 'times new roman', times, serif;"></font></td></tr></table></div>
44707273
45274540
1054665
393025
45761938
45667565
7057000
1530000
4186000
1341000
20237000
1530000
17383000
1324000
9846000
9938000
3621000
3546000
2525000
2560000
2495000
2511000
1033000
2457000
1022000
840000
809000
809000
P5Y
P15Y
P5Y
P25Y
Shorter of lease term or related asset life
7001000
7045000
7791000
4321000
2730000
3817000
2644000
2744000
1673000
1605000
1490000
1368000
3736000
1276000
1120000
1128000
1805000
926000
432000
472000
10673015
10088074
2500000
220000
9.63
11.50
11.50
2020-07-08
2020-07-08
<div>The Company operates two vessels year-round in the Galápagos National Park in Ecuador: the <i style="text-align: justify; color: #000000; text-transform: none; text-indent: 48px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 13.33px; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">National Geographic Endeavour II</i> with 95 berths and the <i style="text-align: justify; color: #000000; text-transform: none; text-indent: 48px; letter-spacing: normal; font-family: 'times new roman', times, serif; font-size: 13.33px; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">National Geographic Islander</i> with 47 berths. In order to operate these vessels within the park, the Company is required to have in its possession cupos (licenses) sufficient to cover the total available berths on each vessel.</div>
4100000
6700000
1500000
1500000
400000
400000
2
2
P15Y
P5Y
12700000
40300000
45600000
38300000
171400000
2525000
170625000
202525000
2525000
200000000
-7214000
-7214000
-12544000
-12544000
164186000
2525000
163411000
189981000
2525000
187456000
1750000
1500000
171400000
201025000
-7214000
-12544000
200000000
2500000
107700000
25000000
5000000
The Borrower's election, the loan will bear interest either at a fixed interest rate effectively equal to 5.78% or a floating interest rate equal to three-month LIBOR plus a margin of 3.00% per annum. The loan will amortize quarterly based on a twelve-year profile, with 70% maturing over twelve years from drawdown, and 30% maturing over five years from drawdown.
Borrowings under the Revolving Facility will bear interest at an adjusted ICE Benchmark administration LIBOR plus a spread of 3.00%, or, at the option of the Company, an alternative base rate plus a spread of 2.00%. The Company is also required to pay a 0.5% annual commitment fee on undrawn amounts under the Revolving Credit Facility.
2025-03-27
2023-03-27
2020-12-31
0.0144
The purpose of providing financing for up to 80% of the purchase price of the Company's new ice class vessel, the National Geographic Endurance, targeted to be completed in January 2020. Seventy percent of the loan will be guaranteed by Garantiinstituttet for Eksportkreditt, the official export credit agency of Norway. If drawn upon, the loan will be made at the time of delivery of the vessel.
Borrowings under the Term Facility will bear interest at an adjusted ICE Benchmark administration LIBOR plus a spread of 3.50%, which steps down to 3.25% if the Company's debt rating from Moody's and S&P are both B1 (stable) or better and BB (negative) or better, respectively. The interest rate at March 31, 2018 is 5.95%.
The Restated Credit Agreement (i) requires the Company to satisfy certain financial covenants as set forth in the Amended Credit Agreement; (ii) limits the amount of indebtedness the Company may incur; (iii) limits the amount the Company may spend in connection with certain types of investments; (iv) requires the delivery of certain periodic financial statements and an operating budget and (v) requires the mortgaged vessels and related inventory to be maintained in good working condition.
The Company capitalized $4.2 million related to lender and third-party fees in connection with the Third Amended and Restated Credit Agreement. In addition, the entry into the Third Amended and Restated Credit Agreement was considered a debt modification with a partial extinguishment, as a result the Company incurred costs of $1.0 million.
45000000
0.30
2100
2100
100000
100000
35000000
15000000
132741
10.27
0.00
2.00
Incentive awards that will be earned based on our performance against metrics relating to annual Adjusted EBITDA, annual revenue, and guest satisfaction. Awards will vest after a three-year performance period and may be earned at a level ranging from 0%-200% of the number of PSUs granted, depending on performance. On March 30, 2018, the Company awarded 88,851 of targeted PSUs with the number of shares determined based upon the closing price of our common stock on March 30, 2018 of $10.27.
955424
1.76
6027000
8451000
130000
14608000
On December 2, 2015, the Company entered into two separate Vessel Construction Agreements, (collectively, the "Agreements") with Ice Floe, LLC, a Washington limited liability company doing business as Nichols Brothers Boat Builders (the "Builder"). The Agreements provide for the Builder to construct two new 236-foot 100-passenger cruise vessels.
The Company entered into an agreement with Ulstein Verft to construct a polar ice class vessel, the National Geographic Endurance, with a total purchase price of 1,066.0 million Norwegian Kroner (NOK). Subsequently, the Company exercised its right to make payments in United States Dollars, which resulted in a purchase price of $134.6 million, including hedging costs. The purchase price is subject to potential adjustments from contract specifications for variations in speed, deadweight, fuel consumption and delivery date, and is due in installments. The first twenty percent of the purchase price was paid shortly after execution of the Agreement with the remaining eighty percent due upon delivery and acceptance of the vessel. The vessel is targeted to be delivered in January 2020, with potential accelerated delivery to November 2019. The contract also includes options to build two additional ice class vessels.
The Company amended the agreement for the second vessel, the National Geographic Venture, in October 2017. The current contract price is $57.3 million and the vessel is scheduled to be completed in the fourth quarter of 2018, subject to extension for certain events, such as change orders. As of March 31, 2018, the Company has paid Ice Floe, LLC $34.8 million related to the National Geographic Venture. The Company may terminate the applicable Agreement in the event the builder fails to deliver the vessel within 180 days of the applicable due date or the builder becomes insolvent or otherwise bankrupt. The Agreement also contains customary representations, warranties, covenants and indemnities.
1200000
200000
1600000
200000
1700000
1600000
134600000
19282000
17251000
2031000
0.31
0.32
0.20
13006000
12173000
833000
200000
200000
200000000
200000
200000
200000000
22100000
22100000
4800000
4800000
4600000
4600000
22800000
14400000
100000