Note 4 - Estimated Liquidation and Operating Costs Net of Estimated Receipts

12 Months Ended

Dec. 31, 2025

Liquidation Basis of Accounting, Liability for Estimated Costs in Excess of Receipts [Text Block]

4.	Estimated Liquidation and Operating Costs Net of Estimated Receipts

The liquidation basis of accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the plan of liquidation. The Company currently estimates that it will incur liquidation and operating costs net of estimated receipts during the remaining liquidation period of $17,334,618 (inclusive of selling costs and retention bonuses aggregating approximately $5.3 Million and certain sewer treatment plant and related (direct/indirect) onsite infrastructure costs of approximately $4.0 million (which will be funded as a credit from closing proceeds pursuant to the B2K Agreement, as amended), excluding the gross proceeds from the real estate sales. These amounts can vary significantly due to, among other things, land entitlement costs, the timing and estimates for executing and renewing leases, capital expenditures to maintain the real estate at its current estimated realizable value and estimates of tenant improvement costs, costs to defend the Article 78 Proceeding, the timing of property sales and any direct/indirect costs incurred that are related to the sales (e.g., retention bonuses on the sale of the Cortlandt Manor and Flowerfield properties, real estate commissions, costs to address buy side due diligence inclusive of administrative fees, legal fees and property costs to address items arising from such due diligence and not previously known), the timing and amounts associated with discharging known and contingent liabilities and the costs associated with the winding up of operations. These costs are estimated and are anticipated to be paid during the remaining liquidation period.

The change in the liability for estimated costs in excess of estimated receipts during liquidation from January 1, 2025 through December 31, 2025 is as follows:

	January 1, 2025			Expenditures/ (Receipts)			Remeasurement of Assets and Liabilities			December 31, 2025
Assets:
Estimated rents and reimbursements	$	5,816,979		$	(3,050,479	)	$	5,027,180		$	7,793,680
Prepaid expenses and other assets		470,864			35,532			-			506,396
Liabilities:
Property operating costs		(3,850,068	)		2,057,276			(3,416,586	)		(5,209,378	)
Capital expenditures		(403,442	)		54,391			(949	)		(350,000	)
Land entitlement costs		(1,238,507	)		380,435			(467,897	)		(1,325,969	)
Closing credit for infrastructure costs		-			-			(4,020,222	)		(4,020,222	)
Corporate expenditures		(6,890,106	)		2,433,240			(4,982,084	)		(9,438,950	)
Selling costs on real estate assets		(3,023,280	)		184,049			(216,120	)		(3,055,351	)
Retention bonus payments to officers and employees*		(1,972,186	)		-			(262,638	)		(2,234,824	)
Liability for estimated liquidation and operating costs net of estimated receipts	$	(11,089,746	)	$	2,094,444		$	(8,339,316	)	$	(17,334,618	)

*The amounts reported are based on the provisions of the retention bonus plan and the reported amount of the real estate assets estimated net realizable value.

The change in the liability for estimated costs in excess of estimated receipts during liquidation from January 1, 2024 through December 31, 2024 is as follows:

	January 1, 2024			Expenditures/ (Receipts)			Remeasurement of Assets and Liabilities			December 31, 2024
Assets:
Estimated rents and reimbursements	$	6,410,201		$	(3,105,989	)	$	2,512,767		$	5,816,979
Prepaid expenses and other assets		716,866			(205,519	)		(40,483	)		470,864
Liabilities:
Property operating costs		(3,852,991	)		1,898,920			(1,895,997	)		(3,850,068	)
Capital expenditures		(300,000	)		172,506			(275,948	)		(403,442	)
Land entitlement costs		(1,210,861	)		422,328			(449,974	)		(1,238,507	)
Corporate expenditures		(7,540,106	)		1,987,749			(1,337,749	)		(6,890,106	)
Selling costs on real estate assets		(3,226,800	)		-			203,520			(3,023,280	)
Retention bonus payments to officers and employees		(2,104,949	)		-			132,763			(1,972,186	)
Liability for estimated liquidation and operating costs net of estimated receipts	$	(11,108,640	)	$	1,169,995		$	(1,151,101	)	$	(11,089,746	)