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true false false 84938211 324000 371000 297000 1097000 8000 11000 34000 38000 15000 20000 678000 1537000 -678000 -1537000 0 2000 97000 57000 -775000 -1592000 0 0 -775000 -1592000 -0.01 -0.02 84938000 84938000 533000 87000 0 0 533000 87000 2074000 3172000 200000 2000000 219000 3600000 2493000 8772000 5500000 0 2000000 0 0.01 0.01 200000000 200000000 84938000 84938000 84938000 84938000 849000 849000 551591000 551591000 -561900000 -561125000 0 0 0 0 -9460000 -8685000 533000 87000 849000 551591000 -561125000 0 -8685000 0 0 -775000 0 -775000 849000 551591000 -561900000 0 -9460000 849000 551591000 -556565000 0 -4125000 0 0 -1592000 0 -1592000 849000 551591000 -558157000 0 -5717000 -775000 -1592000 0 0 -679000 978000 -1454000 -614000 1500000 0 400000 500000 1900000 500000 446000 -114000 87000 314000 533000 200000 0 0 0 0 4000000 0 2000000 0 219000 0 200000 0 <div style="text-align: justify; font-size: 10pt;"> <span style="font-weight: bold;">Note 1 – The Company and Basis of Presentation and Going Concern</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The accompanying condensed consolidated financial statements of AmBase Corporation and subsidiaries (“AmBase” or the “Company”) are unaudited and subject to year-end adjustments. All material intercompany transactions and balances have been eliminated. In the opinion of management, these financial statements reflect all adjustments, consisting only of normal recurring adjustments unless otherwise disclosed, necessary for a fair presentation of the Company’s consolidated financial position, results of operations and cash flows. Results for interim periods are not necessarily indicative of results for the full year. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that it deems reasonable, that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates and assumptions. The unaudited interim condensed consolidated financial statements presented herein are condensed and should be read in conjunction with the Company’s consolidated financial statements filed in its Annual Report on Form 10‑K for the year ended December 31, 2025. </div> <div style="font-size: 10pt; text-align: justify;"> </div> <div style="margin: 0in; font-size: 12pt; text-align: justify;"><span style="font-size:10.0pt">In June 2013, the Company purchased an equity interest in a real estate development property through a joint venture agreement to purchase and develop real property located at 105 through 111 West 57^th Street in New York, New York (the “111 West 57^th Property”). The Company is engaged in material disputes and litigation with regard to the 111 West 57^th Property. Despite ongoing litigation challenging the legitimacy of the actions taken in connection with the “Strict Foreclosure”, (as defined and as further discussed herein), the Company recorded an impairment for the full amount of its equity investment in the 111 West 57th Property in 2017. Prior to the Strict Foreclosure, the carrying value of the Company’s equity investment in the 111 West 57^th Property represented a substantial portion of the Company’s assets and net equity value.</span></div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> For additional information regarding the Company’s recording of an impairment of its equity investment in the 111 West 57^th Property and the Company’s legal proceedings relating to the 111 West 57^th Property, including the Company’s challenge to the Strict Foreclosure, see<span style="font-style: italic;"> Note 3</span> and <span style="font-style: italic;">Note 6.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> A fundamental principle of the preparation of financial statements in accordance with GAAP is the assumption that an entity will continue in existence as a going concern, which contemplates continuity of operations and the realization of assets and settlement of liabilities occurring in the ordinary course of business. In accordance with this requirement, the Company has prepared its accompanying condensed consolidated financial statements assuming the Company will continue as a going concern. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Company has incurred operating losses and used cash for operating activities for the past several years. The Company has continued to keep operating expenses at a reduced level; however, there can be no assurance that the Company’s current level of operating expenses will not increase or that other uses of cash will not be necessary. The Company believes that based on its current level of operating expenses, its existing cash and cash equivalents may not be sufficient to cover operating cash needs through the twelve month period from the financial statement reporting date. Based on the above factors, management determined there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The financial statements do not include adjustments to the carrying value of assets and liabilities, which might be necessary should the Company not continue in operation. </div><div style="text-align: justify; font-size: 10pt;"> In order to continue as a going concern and fund anticipated future litigation expenses, the Company will need to raise additional capital. The Company continues to explore all possible strategic alternatives to meet its capital needs, including but not limited to, raising additional capital through the sale of equity or debt securities or long-term borrowings, which may include additional borrowings from management and/or affiliates of the Company, financial institutions or other stockholders of the Company, litigation funding agreements from management and/or affiliates of the Company, financial institutions, other stockholders of the Company, or other third parties, or any combination thereof, and seeking recoveries from various sources. The Company intends for any sales of debt or equity securities or any borrowings from any parties to be on market terms to be agreed upon at the time of any transaction. However, there can be no assurance that the Company will be able to raise capital or obtain financing on terms acceptable to the Company, if at all. While the Company’s management is evaluating future courses of action to protect and/or recover the value of the Company’s equity investment in the 111 West 57^th Property, the adverse developments make it uncertain as to whether any such courses of action will be successful. Any such efforts are likely to require sustained effort over a period of time and substantial additional capital. Inability to recover all or most of such value would, in all likelihood, have a material adverse effect on the Company’s financial condition and future prospects. The Company can give no assurances with regard to if it will prevail with respect to any of its claims. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> As noted above, the Company continues to explore all possible strategic alternatives to meet its capital needs. Litigation funding agreements are special types of financing arrangements that generally are structured so that the litigation funder would receive back their initial funding amount first (i.e. before any recovery is received by the Company), plus an additional multiple ranging from 1.0 times to 3.5 times the amount funded (depending on various factors), plus depending on the funder, additional fees, expenses, interest and potentially an additional percentage of the total recovery received. If the Company continues to source capital through one or more litigation funding agreements, there can be no assurance that the Company would be able to secure any such additional litigation funding on acceptable terms or at all. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify;"> In order to provide the necessary cash resources to continue operations and continue the litigation related to the 111 West 57th Property, and pay amounts currently owed, the Company entered into litigation funding agreements with Mr. Richard A. Bianco, the Company’s Chairman, President and Chief Executive Officer (“Mr. R.A. Bianco” or “RAB”) and BARC Investments LLC (“BARC”). As part of those litigation funding agreements, the Company shall distribute any consideration it actually receives in connection with the 111 West 57^th legal proceedings in accordance with the terms of the litigation funding agreements which will therefore further reduce the Company’s share of any future litigation proceeds. For additional information, see<i> Note 10.</i> </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On April 1, 2024, the Company completed the issuance and sale of the shares of the Company’s common stock (the “Shares”) in the <span style="color: #000000;">private placement offering (the “Equity Offering”) </span>on the previously disclosed terms and conditions, including Shares purchased by an institutional investor not affiliated with the Company and Shares purchased by BARC Investments, LLC, an affiliate of the Company owned and controlled by two of the Company’s directors and their sibling. The offer and sale of the Shares in the Equity Offering was completed in reliance on the exemption from registration under Rule 506(c) of Regulation D promulgated under Section 4(a)(2) of the Securities Act of 1933, as amended. </div> <div style="text-align: justify; font-size: 10pt;"> The accompanying condensed consolidated financial statements of AmBase Corporation and subsidiaries (“AmBase” or the “Company”) are unaudited and subject to year-end adjustments. All material intercompany transactions and balances have been eliminated. In the opinion of management, these financial statements reflect all adjustments, consisting only of normal recurring adjustments unless otherwise disclosed, necessary for a fair presentation of the Company’s consolidated financial position, results of operations and cash flows. Results for interim periods are not necessarily indicative of results for the full year. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that it deems reasonable, that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates and assumptions. The unaudited interim condensed consolidated financial statements presented herein are condensed and should be read in conjunction with the Company’s consolidated financial statements filed in its Annual Report on Form 10‑K for the year ended December 31, 2025. </div> 1 3.5 2 <div style="text-align: justify; font-size: 10pt;"> <span style="font-weight: bold;">Note 2 – Summary of Significant Accounting Policies</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> <span style="font-weight: bold; font-style: italic;">New accounting pronouncements</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> In November 2024, the FASB issued <span style="font-style: italic;">ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.</span> The amendments in this update require footnote disclosures on disaggregated information about specific categories underlying certain income statement expense line items that are considered relevant. This includes items such as employee compensation. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. We are currently evaluating the impact of adopting this standard; however, we do not expect it to impact the Company’s consolidated financial position, results of operations, or cash flows. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> Other new accounting pronouncements issued, but not effective until after March 31, 2026, did not and are not expected to have a material impact on our financial position, results of operations or liquidity. </div> <div style="text-align: justify; font-size: 10pt;"> <span style="font-weight: bold; font-style: italic;">New accounting pronouncements</span> </div><div style="text-align: justify; font-size: 10pt;"> In November 2024, the FASB issued <span style="font-style: italic;">ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.</span> The amendments in this update require footnote disclosures on disaggregated information about specific categories underlying certain income statement expense line items that are considered relevant. This includes items such as employee compensation. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. We are currently evaluating the impact of adopting this standard; however, we do not expect it to impact the Company’s consolidated financial position, results of operations, or cash flows. </div><div style="text-align: justify; font-size: 10pt;"> Other new accounting pronouncements issued, but not effective until after March 31, 2026, did not and are not expected to have a material impact on our financial position, results of operations or liquidity. </div> <div style="font-size: 10pt;"> <span style="text-transform: uppercase; font-weight: bold;">N</span><span style="font-weight: bold;">ote 3 – Investment in 111 West 57</span><sup style="font-weight: bold;">th</sup><span style="font-weight: bold;"> Partners LLC</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify;"> In June 2013, the Company purchased an equity interest in the 111 West 57^th Property. The Company is engaged in material disputes and litigation with regard to the 111 West 57^th Property. Despite ongoing litigation challenging the legitimacy of the actions taken in connection with the “Strict Foreclosure”, (as defined below and as further discussed herein), the Company recorded an impairment for the full amount of its equity investment in the 111 West 57th Property in 2017. </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> For additional information regarding the Company’s 111 West 57^th Property equity investment, events leading up to the Strict Foreclosure, the Company’s recording of an impairment of its equity investment in the 111 West 57^th Property and the Company’s legal proceedings relating to the 111 West 57^th Property, including the Company’s challenge to the Strict Foreclosure, see<span style="font-style: italic;"> </span>herein below and<span style="font-style: italic;"> Note 6.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="margin: 0in; font-size: 12pt; text-align: justify;"><span style="font-size:10.0pt">In June 2013, 111 West 57^th Investment LLC (“Investment LLC”), a then newly formed subsidiary of the Company, entered into a joint venture agreement (as amended, the “JV Agreement”) with 111 West 57th Sponsor LLC (the “Sponsor”), pursuant to which Investment LLC invested (the “Investment”) in a real estate development property to purchase and develop the 111 West 57^th Property. In consideration for making the Investment, Investment LLC was granted a membership interest in 111 West 57^th Partners LLC (“111 West 57^th Partners”), which indirectly acquired the 111 West 57^th Property on June 28, 2013 (the “Joint Venture,” and such date, the “Closing Date”). The Company also indirectly contributed an additional amount to the Joint Venture in exchange for an additional indirect interest in the Joint Venture. Other members and the Sponsor contributed additional cash and/or property to the Joint Venture. The Company recorded its investment in 111 West 57^th Partners utilizing the equity method of accounting. The Joint Venture plans were to redevelop the 111 West 57^th Property into a luxury residential tower and retail project.</span></div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> Amounts relating to the Company’s initial June 2013 investment in the 111 West 57^th Property follow: </div> <div style="text-align: justify; font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 88%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> <div style="text-indent: -9pt; padding-left: 8.65pt;"> <span style="font-style: italic;">($ in thousands)</span> </div> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%;"> </td> <td style="vertical-align: bottom; width: 9%;"> </td> <td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div style="text-indent: -9pt; padding-left: 8.65pt;"> Company’s aggregate initial investment </div> </td> <td style="text-align: right; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="text-align: left; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid black;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">57,250</td> <td style="width: 1%; text-align: left; border-bottom: 2px solid transparent;"> </td> </tr> <tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> <div> Company’s aggregate initial membership interest % </div> </td> <td style="vertical-align: bottom; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 2px solid black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">60.3</td> <td style="text-align: left; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid transparent;">%</td> </tr> </table><div style="text-align: center; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The JV Agreement and related operating agreements generally provide that all distributable cash shall be distributed as follows: (i) first, 100% to the members in proportion to their percentage interests until Investment LLC has received distributions yielding a 20% internal rate of return as calculated; (ii) second, 100% to the Sponsor as a return of (but not a return on) any additional capital contributions made by the Sponsor on account of manager overruns; and (iii) thereafter, (a) 50% to the members in proportion to their respective percentage interests at the time of such distribution, and (b) 50% to the Sponsor. </div><div style="text-align: justify;"> In March 2014, the Company entered into an amended and restated operating agreement for Investment LLC (the “Amended and Restated Investment Operating Agreement”) to grant a 10% subordinated participation interest in Investment LLC to the Company’s Chairman, President and Chief Executive Officer, Mr. Richard A. Bianco (“Mr. R.A. Bianco”), as a contingent future incentive for Mr. R.A. Bianco’s past, current and anticipated ongoing role to develop and commercialize the Company’s equity investment in the 111 West 57^th Property. Pursuant to the terms of the Amended and Restated Investment Operating Agreement, Mr. R.A. Bianco has no voting rights with respect to his interest in Investment LLC, and his entitlement to receive 10% of the distributions from Investment LLC is subject to the Company first receiving distributions equal to 150% of the Company’s initial aggregate investment in Investment LLC and the Joint Venture, plus any additional investments by the Company, and only with respect to any distributions thereafter. At the current time, the Company has not expensed nor accrued any amounts relating to this subordinated participation interest, as no amount or range of amounts can be reasonably estimated or assured. </div><div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> <span style="color: #000000;">During 2014, in connection with the funding of additional capital calls under the JV Agreement for required borrowing and development costs for the 111 West 57</span><sup style="color: #000000;">th</sup><span style="color: #000000;"> Property, the Company’s management and its Board of Directors concluded that, given the continuing development risks of the 111 West 57</span><sup style="color: #000000;">th</sup><span style="color: #000000;"> Property and the Company’s financial position, the Company should not at that time increase its already significant concentration and risk exposure to the 111 West 57th Property. Nonetheless, the Company sought to limit dilution of its interest in the Joint Venture resulting from any failure to fund the capital call requirements, but at the same time wished to avoid the time, expense and financial return requirements (with attendant dilution and possible loss of voting rights) that obtaining a replacement third-party investor would require. The Company, therefore, entered into a second amended and restated operating agreement for Investment LLC (“Second Amended and Restated Investment Operating Agreement”) pursuant to which Capital LLC was admitted as a member of Investment LLC. In exchange for Capital LLC contributing toward Investment LLC capital calls in respect of the 111 West 57</span><sup style="color: #000000;">th </sup><span style="color: #000000;">Property, available cash of Investment LLC will be distributed first to Capital LLC until it has received a 20% internal rate of return (calculated as provided for in the JV Agreement as noted above), second to the Company until it has received 150% of its capital, and, thereafter, available cash is split 10/90, with 10% going to Mr. R.A. Bianco as the subordinated participation interest noted above and 90% going to Capital LLC and the Company pari-passu, with Capital LLC receiving <span style="-sec-ix-hidden: hidden-fact-5">one-half</span> of its pro-rata share based on capital contributed and the Company receiving the balance. No other material changes were made to the Amended and Restated Investment Operating Agreement, and neither Mr. R.A. Bianco nor Capital LLC has any voting rights with respect to their interest and investment in Investment LLC. </span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> In accordance with the JV Agreement, shortfall capital contributions may be treated either as a member loan or as a dilutive capital contribution as set forth in the JV Agreement. The Sponsor deemed the shortfall capital contributions as dilutive capital contributions to the Company. The Company disagrees with the Sponsor’s investment percentage calculations. The Sponsor has taken the position that the capital contribution requests, if taken together, would have caused the Company’s combined ownership percentage to be diluted below the Company’s initial membership interest percentage. The parties have a dispute with regard to the calculation of the revised investment percentages resulting from the capital contribution requests, along with the treatment and allocation of these shortfall capital contribution amounts. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On June 30, 2015, 111 West 57^th Partners obtained financing for the 111 West 57^thProperty. The financing was obtained in two parts: (i) a first mortgage construction loan with AIG Asset Management (US), LLC (along with its affiliates “AIG”); and (ii) a mezzanine loan with Apollo Commercial Real Estate Finance, Inc. (along with its affiliates “Apollo”), as detailed herein. Both loans initially had certain repayment term dates with extension option(s) subject to satisfying certain conditions. The loan agreements (the “Loan Agreements”) also include customary events of default and other customary terms and conditions. Simultaneously with the closing of the AIG and the Apollo financing, 111 West 57^th Partners repaid all outstanding liabilities and obligations to Annaly CRE, LLC under the initial mortgage and acquisition loan agreement, dated June 28, 2013, between the joint venture entities and Annaly CRE, LLC. The remaining loan proceeds were to be drawn down and used as necessary for construction and related costs, loan interest escrow and other related project expenses for development of the 111 West 57^th Property. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> <span style="color: #000000;">In April 2016, the Company initiated a litigation in the New York State Supreme Court for New York County (the “NY Court”), Index No. 652301/2016, (“AmBase v. 111 West 57th Sponsor LLC, et al.”) (the “Sponsor Action”). The defendants in that litigation include 111 West 57th Sponsor LLC, Kevin Maloney, Michael Stern, and various members and affiliates, Liberty Mutual Insurance Company, and Liberty Mutual Fire Insurance Company (collectively, “Defendants”) and nominal defendants 111 West 57th Partners LLC and 111 West 57th Mezz 1 LLC. For additional information with regard to the Company’s legal proceedings relating to the 111 West 57th Property, see </span><span style="color: #000000; font-style: italic;">Note 6</span><span style="font-style: italic;">.</span> </div><div style="text-align: justify; font-size: 10pt;"> In December 2016, the Sponsor proposed for approval a “proposed budget” (the “Proposed Budget”), which the Sponsor claims reflected an increase in other costs resulting in the need for additional funding in order to complete the project. The Company disputes, among other items, the calculation of the percentage increase of hard costs shown in the Proposed Budget. The Company believes the aggregate projected hard costs in the Proposed Budget exceed a contractually stipulated limit as a percentage of the hard costs set forth in the prior approved budget, thus allowing Investment LLC the option to exercise its equity put right as set forth in the JV Agreement (the “Equity Put Right”). Consequently, subsequent to the Sponsor’s presentation of the Proposed Budget, Investment LLC notified the Sponsor that it was exercising its Equity Put Right pursuant to the JV Agreement. The Sponsor refused to honor the exercise of Investment LLC’s Equity Put Right. The Sponsor claims, among other things, that the conditions precedent were not met because it claims that the increase in aggregate hard costs in the Proposed Budget does not exceed the contractually stipulated limit that would allow the exercise of the Equity Put Right. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Company further contends that a portion of the Proposed Budget increases are manager overruns (as defined in the JV Agreement) and thus should be paid for by the Sponsor. The Sponsor denies that the Proposed Budget increases were manager overruns. The Company continues to challenge the nature and substance of the Proposed Budget increases and how they should be treated pursuant to the JV Agreement. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Sponsor claimed that additional borrowings were needed to complete the project. Shortly thereafter, the Sponsor informed the Company that Apollo had indicated that due to budget increases, it believed the current loan was “out of balance” (meaning, according to Apollo, the projected budget exceeds the original budget approved in connection with the loan); and thus 111 West 57th Partners LLC, or its subsidiaries would need additional funding in order to bring the loan back into balance. The Company considered approving the additional financing but informed the Sponsor that it had concerns about the Proposed Budget and the implications of the Proposed Budget, as well as other questions which needed to be addressed first. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> Around this time, Apollo provided loan forbearances to the borrowers and guarantors to allow the Sponsor time (while the building continued to be built) to raise the additional financing that Sponsor claimed would be needed to complete the 111 West 57th project. This forbearance period ended on June 29, 2017. Around this date, the Company was advised that Apollo sold a portion of the mezzanine loan—broken off as a junior mezzanine loan—to an affiliate of Spruce Capital Partners LLC (“Spruce”) (the “Junior Mezzanine Loan”). </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On June 30, 2017, Spruce declared an event of default under the Junior Mezzanine Loan and demanded immediate payment of the full outstanding balance of the Junior Mezzanine Loan. Spruce then gave notice to the junior mezzanine borrower that it proposed to accept the pledged collateral (including the joint venture members’ collective interest in the property) in full satisfaction of the joint venture’s indebtedness under the Junior Mezzanine Loan (i.e., a “Strict Foreclosure”). </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On July 25, 2017, the Company filed a complaint against Spruce and the Sponsor and requested injunctive relief halting the Strict Foreclosure from the New York State Supreme Court for New York County, (the “NY Court”) Index No. 655031/2017, (the “Lender Action”). The defendants in the Lender Action were 111 W57 Mezz Investor, LLC, Spruce Capital Partners LLC, 111 West 57th Sponsor LLC, Michael Z. Stern, and Kevin P. Maloney (collectively, “Defendants”) and nominal defendants 111 West 57th Partners LLC and 111 West 57^th Mezz 1 LLC. The Company has since voluntarily discontinued its claims against Sponsor, Stern, and Maloney, without prejudice to reinstating them in the Lender Action or any other action. For additional information with regard to the Lender Action, see <span style="font-style: italic;">Note 6.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On August 30, 2017, Spruce issued a Notice of Retention of Pledged Collateral in Full Satisfaction of Indebtedness. By purporting to accept the pledged collateral, pursuant to a Strict Foreclosure process, Spruce claims to have completed the retention of the collateral pledged by the junior mezzanine borrower, and therefore, the Company’s interest in the 111 West 57th Property (the “Strict Foreclosure”). Despite ongoing litigation challenging the legitimacy of the actions taken in connection with the Strict Foreclosure, the Company recorded an impairment for the full amount of its equity investment in the 111 West 57^th Property in 2017. Prior to the Strict Foreclosure, the carrying value of the Company’s equity investment in the 111 West 57^th Property represented a substantial portion of the Company’s assets and net equity value. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> For additional information regarding the Company’s legal proceedings relating to the 111 West 57^th Property, including the Company’s challenge to the Strict Foreclosure, see <span style="font-style: italic;">Note 6</span>. </div><div style="text-align: justify; font-size: 10pt;"> With respect to its disputes and litigation relating to its interest in the 111 West 57th Property, the Company is pursuing, and will continue to pursue, other options to realize the Company’s investment value, various legal courses of action to protect its legal rights, recovery of its asset value from various sources of recovery, as well as considering other possible economic strategies, including the possible sale of the Company’s interest in and/or rights with respect to the 111 West 57^th Property; however, there can be no assurance that the Company will prevail with respect to any of its claims. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Company can give no assurances regarding the outcome of the matters described herein, including as to the effect of Spruce’s actions described herein, whether the Sponsor will perform their contractual commitments to the Company under the JV Agreement, as to what further action, if any, the lenders may take with respect to the project, as to the ultimate resolution of the ongoing litigation proceedings relating to the Company’s investment interest in the 111 West 57^th Property, as to the ultimate effect of the Sponsor’s, the Company’s or the lenders’ actions on the project, as to the completion or ultimate success of the project, or as to the value or ultimate realization of any portion of the Company’s equity investment in the 111 West 57^th Property. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> While the Company’s management is evaluating future courses of action to protect and/or recover the value of the Company’s equity investment in the 111 West 57^th Property, the adverse developments make it uncertain as to whether any such courses of action will be successful. Any such efforts are likely to require sustained effort over a period of time and substantial additional financial capital. Inability to recover all or most of such value would, in all likelihood, have a material adverse effect on the Company’s financial condition and future prospects. The Company can give no assurances with regard to if it will prevail with respect to any of its claims. </div> <div style="text-align: justify; font-size: 10pt;"> Amounts relating to the Company’s initial June 2013 investment in the 111 West 57^th Property follow: </div> <div style="text-align: justify; font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 88%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> <div style="text-indent: -9pt; padding-left: 8.65pt;"> <span style="font-style: italic;">($ in thousands)</span> </div> </td> <td style="vertical-align: bottom; width: 1%;"> </td><td style="vertical-align: bottom; width: 1%;"> </td> <td style="vertical-align: bottom; width: 9%;"> </td> <td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div style="text-indent: -9pt; padding-left: 8.65pt;"> Company’s aggregate initial investment </div> </td> <td style="text-align: right; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="text-align: left; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid black;">$</td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">57,250</td> <td style="width: 1%; text-align: left; border-bottom: 2px solid transparent;"> </td> </tr> <tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> <div> Company’s aggregate initial membership interest % </div> </td> <td style="vertical-align: bottom; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="vertical-align: bottom; width: 1%; text-align: left; border-bottom: 2px solid black;"> </td> <td style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 2px solid black;">60.3</td> <td style="text-align: left; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid transparent;">%</td> </tr> </table> 57250000 0.603 1 0.20 1 0.50 0.50 0.10 0 0.10 1.50 0 0 0.20 1.50 10/90 0.10 0.90 <div style="font-size: 10pt;"> <span style="font-weight: bold;">Note 4 - Savings Plan</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Company sponsors the AmBase 401(k) Savings Plan (the “Savings Plan”), which is a “Section 401(k) Plan” within the meaning of the Internal Revenue Code of 1986, as amended (the “Code”). The Savings Plan permits eligible employees to make contributions of a percentage of their compensation, which are matched by the Company at a percentage of the employees’ elected deferral. Employee contributions to the Savings Plan are invested at the employee’s discretion in various investment funds. The Company’s matching contributions are invested in the same manner as the compensation reduction contributions. All contributions are subject to the maximum limitations contained in the Code. </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Company’s matching contributions to the Savings Plan, charged to expense, were as follows: </div> <div style="text-align: justify; font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 18.3pt;"> <td style="vertical-align: bottom;"> <div style="text-indent: -9pt; padding-left: 8.65pt;"> <span style="font-style: italic;">($ in thousands</span>) </div> </td> <td style="width: 1%;"> </td><td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; width: 1%;"> </td> <td colspan="5" style="border-top: 1.5pt solid black; border-bottom: 1.5pt solid black; vertical-align: bottom; text-align: center;"> <div style="margin-left: -0.7pt;"> <span style="font-weight: bold;">Three Months Ended</span> </div> </td> <td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> </td> <td style="width: 1%;"> </td><td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td> <td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;"> <div style="margin-left: -0.7pt;"> <span style="font-weight: bold;">March 31,<br/></span> </div> <div style="margin-left: -0.7pt;"> <span style="font-weight: bold;">2026</span> </div> </td> <td style="border-top: 1.5pt solid black; width: 1%;"> </td> <td style="width: 1%;"> </td><td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td> <td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;"><span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">March 31,<br/></span> <div style="margin-left: -0.7pt;"> <span style="font-weight: bold;">2025</span></div></td> <td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div style="text-indent: -9pt; padding-left: 8.65pt;"> Company matching contributions </div> </td> <td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 2px solid black;">$</td> <td style="text-align: right; margin-left: -0.7pt; width: 9%; border-bottom: 2px solid black;">40</td> <td style="width: 1%; text-align: left; border-bottom: 2px solid transparent;"> </td> <td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 2px solid black;">$</td> <td style="text-align: right; margin-left: -0.7pt; width: 9%; border-bottom: 2px solid black;">52</td> <td style="width: 1%; text-align: left; border-bottom: 2px solid transparent;"> </td> </tr> <tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> <div style="text-indent: -9pt; padding-left: 8.65pt;"> Employer match % </div> </td> <td style="width: 1%; border-bottom: 4px double transparent;"> </td><td style="width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="text-align: right; margin-left: -0.7pt; width: 9%; border-bottom: 4px double black;">100</td> <td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double transparent;">%</td> <td style="width: 1%; border-bottom: 4px double transparent;"> </td><td style="width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="text-align: right; margin-left: -0.7pt; width: 9%; border-bottom: 4px double black;">100</td> <td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double transparent;">%</td> </tr> </table> <div style="text-align: justify; font-size: 10pt;"> The Company’s matching contributions to the Savings Plan, charged to expense, were as follows: </div> <div style="text-align: justify; font-size: 10pt;">  </div> <table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"> <td style="width: 76%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%;"> </td><td style="width: 1%;"> </td> <td style="width: 9%;"> </td> <td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; height: 18.3pt;"> <td style="vertical-align: bottom;"> <div style="text-indent: -9pt; padding-left: 8.65pt;"> <span style="font-style: italic;">($ in thousands</span>) </div> </td> <td style="width: 1%;"> </td><td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; width: 1%;"> </td> <td colspan="5" style="border-top: 1.5pt solid black; border-bottom: 1.5pt solid black; vertical-align: bottom; text-align: center;"> <div style="margin-left: -0.7pt;"> <span style="font-weight: bold;">Three Months Ended</span> </div> </td> <td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> </td> <td style="width: 1%;"> </td><td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td> <td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;"> <div style="margin-left: -0.7pt;"> <span style="font-weight: bold;">March 31,<br/></span> </div> <div style="margin-left: -0.7pt;"> <span style="font-weight: bold;">2026</span> </div> </td> <td style="border-top: 1.5pt solid black; width: 1%;"> </td> <td style="width: 1%;"> </td><td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;"> </td> <td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center; width: 9%;"><span style="font-weight: 700; letter-spacing: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">March 31,<br/></span> <div style="margin-left: -0.7pt;"> <span style="font-weight: bold;">2025</span></div></td> <td style="width: 1%;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;"> <div style="text-indent: -9pt; padding-left: 8.65pt;"> Company matching contributions </div> </td> <td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 2px solid black;">$</td> <td style="text-align: right; margin-left: -0.7pt; width: 9%; border-bottom: 2px solid black;">40</td> <td style="width: 1%; text-align: left; border-bottom: 2px solid transparent;"> </td> <td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid transparent;"> </td><td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 2px solid black;">$</td> <td style="text-align: right; margin-left: -0.7pt; width: 9%; border-bottom: 2px solid black;">52</td> <td style="width: 1%; text-align: left; border-bottom: 2px solid transparent;"> </td> </tr> <tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> <div style="text-indent: -9pt; padding-left: 8.65pt;"> Employer match % </div> </td> <td style="width: 1%; border-bottom: 4px double transparent;"> </td><td style="width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="text-align: right; margin-left: -0.7pt; width: 9%; border-bottom: 4px double black;">100</td> <td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double transparent;">%</td> <td style="width: 1%; border-bottom: 4px double transparent;"> </td><td style="width: 1%; text-align: left; border-bottom: 4px double black;"> </td> <td style="text-align: right; margin-left: -0.7pt; width: 9%; border-bottom: 4px double black;">100</td> <td style="margin-left: -0.7pt; vertical-align: top; border-spacing: 0px; border-collapse: collapse; width: 1%; text-align: left; border-bottom: 4px double transparent;">%</td> </tr> </table> 40000 52000 1 1 <div style="font-size: 10pt;"> <span style="font-weight: bold;">Note 5 - Income Taxes</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Company and its domestic subsidiaries file a consolidated federal income tax return. The Company recognizes both the current and deferred tax consequences of all transactions that have been recognized in the unaudited condensed consolidated financial statements, calculated based on the provisions of enacted tax laws, including the tax rates in effect for current and future years. Net deferred tax assets are recognized immediately when a more likely than not criterion is met; that is, a greater than 50% probability exists that the tax benefits will actually be realized sometime in the future. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Company has a deferred tax asset arising primarily from NOL carryforwards. The Company has a full valuation allowance on the deferred tax asset amounts, as management has no basis to conclude that realization is more likely than not. Management does not believe that any significant changes in unrecognized income tax benefits are expected to occur over the next year. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Company’s management is continuing to work closely with outside advisors on the Company’s various federal tax return matters for the numerous interrelated tax years. The Company cannot predict whether or not the IRS and/or other tax authorities will review the Company’s tax returns filed, to be filed and/or as filed in prior years. <span style="color: #000000;">There is risk relating to assumptions regarding the outcome of tax matters, </span>based in whole or in part upon consultation with outside advisors; risk relating to potential unfavorable decisions in tax proceedings; and risks regarding changes in, and/or interpretations of federal and state income tax laws. Moreover, applicable provisions of the<span style="color: #000000;"> Code </span>and IRS regulations permit the IRS to challenge Company tax positions and filed returns or seek additional taxes for an extended period of time after such returns are filed. The Company can give no assurances as to the final outcome of any IRS review, if any. </div><div style="text-align: justify; font-size: 10pt;"> The Company was a plaintiff in a legal proceeding seeking recovery of damages from the United States Government for the loss of the Company’s wholly-owned subsidiary, Carteret Savings Bank, F.A. (the “SGW Legal Proceedings”). A settlement agreement in the SGW Legal Proceedings between the Company, the Federal Deposit Insurance Corporation-Receiver (“FDIC-R”) and the Department of Justice (“DOJ”) on behalf of the United States of America (the “United States”), was executed (the “SGW 2012 Settlement Agreement”) which was approved by the United States Court of Federal Claims (the “Court of Federal Claims”) in October 2012. On August 6, 2013, Senior Judge Smith issued an opinion which addressed the relief sought by AmBase. In summary, the court held that the Settlement Agreement is a contract and that it entitles the Company to receive both “(1) the amount of the tax consequences resulting from taxation of the damages award plus (2) the tax consequences of receiving the first component.” But the Court of Federal Claims did not award an additional amount for the second component at that time given the remaining uncertainty surrounding the ultimate tax treatment of the settlement proceeds and the gross-up, as well as uncertainty relating to the Company’s future income. The Court of Federal Claims indicated that either the Company or the government is entitled to seek further relief “if, and when, the facts justify it.” </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) provided an employee retention credit which was a refundable tax credit against certain employment taxes. The Consolidated Appropriations Act (the “Appropriations Act”) extended and expanded the availability of the employee retention credit through December 31, 2021. The Appropriations Act amended the employee retention credit to be equal to 70% of qualified wages paid to employees during the 2021 fiscal year. The Company qualified for the employee retention credit for qualified wages for tax periods ending March 31, 2021, June 30, 2021, and September 30, 2021, and filed a cash refund claim. In April 2025, the Company received the refund claimed and recorded the employee retention credit received as other income in the unaudited condensed consolidated statement of operations for the second quarter six months ended June 30, 2025. </div> 0.50 0.70 <div style="text-align: justify; font-size: 10pt;"> <span style="font-weight: bold;">Note 6 - Legal Proceedings</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> From time to time, the Company and its subsidiaries may be named as a defendant in various lawsuits or proceedings. At the current time except as set forth below, the Company is unaware of any legal proceedings pending against the Company. The Company intends to aggressively contest all litigation and contingencies, as well as pursue all sources for contributions to settlements. However, there can be no assurance that the Company will prevail with respect to any of its claims. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Company is a party to material legal proceedings as follows: </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> <span style="font-style: italic;">AmBase Corp., et al. v. 111 West 57</span><sup style="font-style: italic;">th</sup><span style="font-style: italic;"> Sponsor LLC, et al.</span> In April 2016, AmBase and certain of its subsidiaries and affiliates (collectively, the “Plaintiffs”) initiated a litigation in the New York State Supreme Court for New York County (the “NY Court”), Index No. 652301/2016, (“AmBase v. 111 West 57th Sponsor LLC, et al.”) (the “Sponsor Action”). The defendants in that litigation include 111 West 57th Sponsor LLC (the “Sponsor”), Kevin Maloney, Michael Stern, and various members and affiliates, (collectively, “Defendants”) and nominal defendants 111 West 57th Partners LLC and 111 West 57th Mezz 1 LLC. In the current version of the complaint, AmBase alleges that Defendants violated multiple provisions in the JV Agreement, including by failing to honor the exercise of AmBase’s contractual “equity put right” as set forth in the JV Agreement (the “Equity Put Right”) and by not objecting to the 2017 foreclosure of the junior mezzanine loan on the project. AmBase is seeking compensatory damages, punitive damages, indemnification and equitable relief, including a declaration of the parties’ rights, and an accounting. The Company has also demanded from the Sponsor access to the books and records for the 111 West 57th Property which the Sponsor refused, claiming they have provided all books and records as required. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> <span style="color: #000000;">The Defendants filed a motion to dismiss an earlier complaint, and on January 12, 2018, the NY Court issued an opinion allowing some of AmBase’s claims to go forward and dismissing others (“2018 Order”). Among other claims that the NY Court declined to dismiss was AmBase’s claim that the Defendants violated the implied covenant of good faith and fair dealing by frustrating AmBase’s Equity Put Right. Claims that the NY Court dismissed included AmBase’s claim that the Defendants breached their contract with AmBase by financing capital contributions for the project through funds obtained from third parties. On January 16, 2018, some of the Defendants wrote to the NY Court suggesting that the opinion contained certain clerical errors and was missing a page. On January 18, 2018, the NY Court removed its previous opinion from the docket and on January 29, 2018, posted a revised opinion. On April 13, 2018, AmBase filed a notice of appeal of the 2018 Order to the </span>New York Supreme Court Appellate Division, First Judicial Department <span style="color: #000000;">(the “Appellate Division”). </span>On January 22, 2020, the Company filed a motion with the Appellate Division seeking to enlarge the time to perfect the Company’s appeal of the 2018 Order, in light of an intervening removal to and remand from federal court. On July 2, 2020, the Appellate Division granted AmBase’s motion and enlarged the time to perfect the Company’s appeal to the October 2020 Term of the Appellate Division. On April 29, 2021, the Appellate Division affirmed Justice Bransten’s dismissal of the claims on appeal, while the claims that were not previously dismissed remain pending in the trial court. </div><div style="text-align: justify; font-size: 10pt;"> <span style="color: #000000;">On April 27, 2018, the Company filed a third amended complaint adding federal RICO claims, and new claims for declaratory judgment, breach of contract, fraud, and breach of fiduciary duty, based on information discovered during the course of discovery and events that had transpired since the Company filed its previous complaint in the Sponsor Action. </span>On June 18, 2018, Defendants removed the complaint to the U.S. District Court for the Southern District of New York (the “Federal Court”), where it was docketed as case number 18-cv-5482-AT. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On October 25, 2018, the Federal Court issued an order granting Defendants’ motion to dismiss the Company’s RICO claims and declined to exercise supplemental jurisdiction over the Company’s state-law claims, dismissing the latter claims without prejudice. On August 30, 2019, the U.S. Court of Appeals for the Second Circuit affirmed the Federal Court’s dismissal of the federal RICO claims, vacated the Federal Court’s dismissal of the state-law claims, and remanded with instructions for the Federal Court to remand those claims to the NY Court.<span style="font-weight: bold;"> </span>On September 25, 2019, the Federal Court remanded the case to the NY Court, where it was assigned to the Honorable O. Peter Sherwood. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On June 11, 2020, Defendants filed a motion with the NY Court to dismiss some of the state law claims asserted by the Company in the third amended complaint. On July 28, 2020, Plaintiffs filed a motion for leave to amend the third amended complaint, which Defendants opposed. The proposed complaint added, among other things, claims arising from certain defendants’ role in the 2017 foreclosure of the junior mezzanine loan on the project. On July 22, 2021, the NY Court granted Plaintiffs leave to amend and denied the motion to dismiss without prejudice as moot in light of the Court’s decision granting Plaintiffs leave to amend. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On July 29, 2021, Plaintiffs filed their fourth amended complaint. On September 3, 2021, Defendants submitted a motion to dismiss the fourth amended complaint in part, which Plaintiffs opposed. On May 9, 2022, the NY Court issued a Decision and Order on Defendants’ motion to dismiss, allowing some of AmBase’s claims to go forward and dismissing others (“May 9, 2022 Order”). The NY Court declined to dismiss AmBase’s claims that the Defendants breached their contracts with AmBase by permitting transfers or encumbrances upon 111 West 57th Sponsor LLC’s and 111 West 57th Control LLC’s membership interests in connection with third-party financing without seeking or obtaining prior written approval. The Court also declined to dismiss AmBase’s claim that Defendants breached their obligations under the Development Agreement by, among other things, failing to use “commercially reasonable efforts” to plan, design, develop, construct, and obtain permits for the Property in a timely manner and failing to devote sufficient time and attention to its obligations under the Development Agreement. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> Claims that the NY Court dismissed included AmBase’s claims that Defendants breached their contract with AmBase by making capital contributions to Sponsor from third parties; consenting to the strict foreclosure without obtaining AmBase’s prior written approval in violation of the “Major Decisions” provision; refusing to cooperate and share information with AmBase’s construction consultant; and engaging in fraud and intentional misconduct in violation of Joint Venture Agreement section 8.5. The NY Court also dismissed AmBase’s claim that Defendants made fraudulent misrepresentations or omissions (as duplicative of the breach of contract claims) and other claims whose dismissal was compelled by a prior decision of the First Department, namely, AmBase’s claims that Sponsor, Stern, and Maloney breached their fiduciary duties of loyalty; to impose a constructive trust on the insurance loss fund; and to impose a constructive trust on Stern’s, Maloney’s, JDS’s, PMG’s, and the construction manager’s construction management fees and Stern’s and Maloney’s equity interest in the Project. Finally, the Court dismissed AmBase’s current allegations that piercing certain of Defendants’ corporate veils is warranted. On January 18, 2023, the Company filed a notice of appeal appealing the May 9, 2022 Order with regard to all defendants in the Sponsor Action and perfected the appeal on July 10, 2023. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On November 28, 2023, the Appellate Division First Department issued its decision modifying the NY Court’s decision in part and affirming the NY Court’s decision in part. The First Department modified the NY Court’s decision by reinstating Plaintiffs’ breach of contract claim based on Defendants’ refusing to cooperate and share information with AmBase’s construction consultant and one part of Plaintiffs’ fraudulent misrepresentation or omission claim asserted against one of the individual defendants. The First Department otherwise affirmed the NY Court’s decision. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> Liberty Mutual Insurance Company and Liberty Mutual Fire Insurance Company (“Liberty Mutual Defendants”) were named as defendants in the fourth amended complaint. On September 30, 2021, the Liberty Mutual Defendants answered the fourth amended complaint and filed a counterclaim against the Company’s subsidiaries for specific performance of a pledge agreement securing certain insurance policies issued for the Project. Plaintiffs replied to those counterclaims on October 20, 2021. On March 14, 2024, the parties filed a Stipulation of Discontinuance Against Liberty Mutual Insurance Company and Liberty Mutual Fire Insurance Company whereby all causes of action, counterclaims, and crossclaims by and against the Liberty Mutual Defendants were discontinued without prejudice. The Court entered the Stipulation on March 15, 2024. </div><div style="text-align: justify; font-size: 10pt;"> Matthew Phillips was also named as an individual defendant in the fourth amended complaint. Following the First Department’s reinstatement of one part of Plaintiffs’ fraudulent misrepresentation or omission claim as asserted against Phillips, on March 26, 2024, the parties filed a Stipulation of Discontinuance Against Matthew Phillips whereby Plaintiffs AmBase Corporation and 111 West 57th Investment LLC discontinued their Fifth Claim for Relief for fraudulent misrepresentation or omission only against Phillips, with prejudice. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On January 30, 2023, Sponsor, Stern, Maloney, and various defendant members and affiliates filed their answer and asserted counterclaims against the Company’s subsidiaries for breach of the Joint Venture Agreement in connection with a proposed refinancing of the Project in 2016. Plaintiffs replied to those counterclaims on February 21, 2023. </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On December 13, 2024, Plaintiffs filed the Note of Issue, certifying that discovery is complete (other than specific outstanding disputes before the Court) and that the case is ready for trial. On February 11, 2025, Plaintiffs and Sponsor Defendants served their respective motions for partial summary judgment and on February 21, 2025, filed the motions with the Court. After briefing was completed, the Court heard oral argument on July 28, 2025. On September 9, 2025, the Court issued a decision granting in part, and denying in part, Sponsor Defendants’ motion, and denying Plaintiffs’ motion. The Court granted Sponsor Defendants’ motion in part, dismissing Plaintiffs’ claims that Sponsor Defendants breached their contracts with Plaintiffs by permitting transfers of 111 West 57th Sponsor LLC’s and 111 West 57th Control LLC’s membership interests and Plaintiffs claim seeking a declaration that Stern, Maloney, and Sponsor were responsible for Plaintiffs’ losses, on a joint and several basis, under their agreements with Plaintiff. The Court otherwise denied Sponsor Defendants’ motion. The Court held a pre-trial conference on September 30, 2025, and subsequently scheduled a bench trial to begin on November 30, 2026. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On October 20, 2025, Plaintiffs filed a motion to reargue the equity put right portion of the Court’s September 9, 2025, decision on the motions for summary judgment. On November 18, 2025, Defendants filed their opposition brief. On November 24, 2025, Plaintiffs filed their reply brief. On March 24, 2026, the Court issued a decision denying the Company’s motion to reargue. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On October 20, 2025, Plaintiffs filed notices of appeal appealing the portion of the Court’s September 9, 2025, decision on the motions for summary judgment pertaining to Plaintiffs’ indemnification claims. On October 30, 2025, Defendants filed a notice of cross-appeal. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On April 23, 2026, the Appellate Division First Department issued its decision modifying the Court’s September 9, 2025, decision in part and affirming it in part. The First Department modified the Court’s decision by vacating the Court’s declaration as to paragraph (i) of the limited joinders to 111 West 57th Partners LLC’s joint venture agreement and denying Sponsor Defendants’ motion for summary judgment as to that provision. The First Department determined that Plaintiffs’ interpretation of paragraph (i) (that it applies to first-party claims) and Sponsor Defendants’ interpretation (that it applies only to third-party claims) were both reasonable and concluded that neither side was entitled to summary judgment on Plaintiffs’ Seventh Cause of Action as it pertained to paragraph (i) of the limited joinders. The First Department otherwise affirmed the Court’s decision. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On February 20, 2025, Sponsor Defendants filed a motion for sanctions against Plaintiffs seeking monetary sanctions, negative inferences, the preclusion of Plaintiffs being able to use certain deposition testimony, and fees and costs. On April 2, 2025, Plaintiffs filed their opposition to Sponsor Defendants’ motion. On April 24, 2025, Sponsor Defendants filed their reply. After briefing was completed, the Court heard oral argument on May 21, 2025. On July 16, 2025, the Court issued a decision granting in part, and denying in part, the motion. The Court granted the motion in part, finding that there was spoliation, but deferred any remedy or sanction until trial when the Court could determine whether and to what extent the gaps in the record prejudice Defendants’ ability to prosecute their counterclaim or defend against Plaintiffs’ claims. The Court also denied the motion in part, determining that Plaintiffs’ counsel’s conduct concerning a fact witness, Matthew Phillips, did not violate Rule 4.2 of the Rules of Professional Conduct or improperly reveal jointly privileged information, and declined to preclude Phillips’ testimony. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> For additional information with regard to the Company’s investment in the 111 West 57^th Property, including the foreclosure, see <span style="font-style: italic;">Note 3</span>. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> <span style="font-style: italic;">AmBase Corp., et al. v. Spruce Capital Partners, et al. </span>In July 2017, the Company initiated a second litigation in the NY Court, Index No. 655031/2017, (the “Lender Action”). The defendants in the Lender Action were 111 W57 Mezz Investor, LLC (“Spruce”), Spruce Capital Partners LLC, 111 West 57th Sponsor LLC, Michael Z. Stern, and Kevin P. Maloney and nominal defendants 111 West 57th Partners LLC and 111 West 57^th Mezz 1 LLC. The Company has since voluntarily discontinued its claims against Sponsor, Stern, and Maloney, without prejudice to reinstating them in the Lender Action or any other action. </div><div style="text-align: justify; font-size: 10pt;"> Spruce had given notice to the junior mezzanine borrower that it proposed to accept the pledged collateral (including the joint venture members’ collective interest in the property) in full satisfaction of the joint venture’s indebtedness under the Junior Mezzanine Loan (i.e., a “Strict Foreclosure”). After the Sponsor refused to object to Spruce’s proposal on behalf of the junior mezzanine borrower, and Spruce refused to commit to honor Investment LLC’s objection on its own behalf, the Company initiated the Lender Action to obtain injunctive relief halting the Strict Foreclosure. For additional information on the events leading to this litigation see <span style="font-style: italic;">Note 3</span>. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On July 26, 2017, the NY Court issued a temporary restraining order barring Spruce from accepting the collateral, pending a preliminary injunction hearing scheduled for August 14, 2017. Spruce and the Sponsor subsequently filed papers in opposition to the request for a preliminary injunction and cross-motions to dismiss and quash subpoenas. On August 14, 2017, the NY Court postponed the hearing until August 28, 2017, keeping the temporary restraining order preventing a Strict Foreclosure in effect until the August 28, 2017 hearing. Subsequently, the Company filed a response brief in support of their request for injunctive relief halting the Strict Foreclosure process and in opposition to the motions to quash the subpoenas. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On August 28, 2017, the NY Court held a preliminary injunction hearing, lifted the temporary restraining order, denied Plaintiffs’ request for a preliminary injunction, and granted Defendants’ cross-motions. In order to prevent the Strict Foreclosure process from going forward, the Company immediately obtained an interim stay from the New York Supreme Court Appellate Division, First Judicial Department (“Appellate Division”). That stay remained in place until August 29, 2017, permitting the Company to obtain an appealable order, notice an appeal, and move for a longer-term stay or injunctive relief pending appeal. The Appellate Division held a hearing on August 29, 2017, to consider the Company’s motion for an interim stay or injunctive relief pending appeal, both of which it denied, thus allowing the purported Strict Foreclosure to move forward. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> In January 2019, the Appellate Division issued a decision that resolved the Company’s appeal from the order denying a preliminary injunction and dismissing its claims. The Appellate Division affirmed the decision below in part and otherwise dismissed the appeal. It noted that the Company should be allowed to move for leave to amend to state claims for damages and/or the imposition of a constructive trust, as the dismissal of the Company’s claims was without prejudice. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On May 3, 2019, the Company’s subsidiary, Investment LLC, entered into a stipulation with Spruce to amend the complaint in the Lender Action to state claims against Spruce for breaches of the Uniform Commercial Code and Pledge Agreement and various torts. The amended complaint sought the entry of a declaratory judgment, the impression of a constructive trust, permanent injunctive relief restraining Spruce from disposing of or encumbering the 111 West 57^th Property, and damages, including punitive damages. The amended complaint did not name the Company as a plaintiff or Spruce Capital Partners as a defendant. On May 31, 2019, Spruce filed a motion to dismiss the amended complaint. On January 29, 2020, the Court entered a decision and order granting in part and denying in part Spruce’s motion to dismiss the amended complaint. On February 26, 2020, Spruce filed a notice of appeal to the Appellate Division seeking the appeal of the January 29, 2020 order. On March 4, 2020, Investment LLC filed a notice of cross-appeal to the Appellate Division, seeking to appeal the January 29, 2020 order to the extent the NY Court dismissed some of Investment LLC’s claims. On March 30, 2021, the Appellate Division issued a decision and order revising the January 29, 2020, order by reinstating Investment LLC’s derivative claim for breach of the covenant of good faith and fair dealing and dismissing the remaining claims. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> While the appeal was pending, the parties to the Lender Action conducted discovery. On April 13, 2021, Investment LLC moved for leave to file a Second Amended Complaint to (1) bolster its factual allegations against the existing Defendant, (2) add claims against Spruce Capital Partners, Joshua Crane, and Robert Schwartz (“Spruce Defendants”), Arthur Becker and his affiliates (“Atlantic Defendants”), Apollo and its affiliates (“Apollo Defendants”), and AIG and its affiliates (“AIG Defendants”). On September 30, 2021, the Court granted the motion, and Investment LLC filed its Second Amended Complaint on the same day. On November 22, 2021, the various defendants filed separate motions to dismiss the claims against them. On December 13, 2021, Investment LLC filed a combined opposition to the motions. The defendants filed their replies on January 7, 2022. </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On May 17, 2022, Plaintiff in the Lender Action filed a motion requesting that the court hold oral argument on the pending motions to dismiss. The court granted the motion and heard argument on July 22, 2022. During argument, counsel for Plaintiff made an oral motion to amend the complaint to add an express allegation that Defendants committed the tort of interference with contractual relations by procuring Sponsor’s breach of the implied covenant of good faith and fair dealing in the JV Agreement. The court called for supplemental briefs on the issue, which were filed on August 5, 2022. </div><div style="text-align: justify; font-size: 10pt;"> On December 15, 2022, the NY Court issued a decision and order granting in part and denying in part the motions to dismiss (“December 15, 2022 Order”). Specifically, the NY Court declined to dismiss Plaintiff’s claims against ACREFI Mortgage Lending, LLC, Apollo Credit Opportunity Fund III AIV I LP, and AGRE Debt 1 – 111 W 57, LLC (“Apollo Lenders”) for breach of the Pledge Agreement in connection with the strict foreclosure. The NY Court dismissed Plaintiff’s claims for tortious interference with contract against the Spruce Defendants, AIG Defendants, and Apollo Defendants, and Plaintiff’s claim for unjust enrichment against the Atlantic Defendants. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On January 3, 2023, the Apollo Lenders filed a notice of appeal to the Appellate Division seeking review of the December 15, 2022 Order. On January 18, 2023, Plaintiff filed notices of appeal and cross-appeal appealing the December 15, 2022, Order with regard to all Defendants. On August 9, 2023, pursuant to mutual agreement with Plaintiff and the AIG Defendants, Plaintiff filed a stipulation to withdraw its appeal against the AIG Defendants. Following briefing and oral argument, the Appellate Division First Department issued its decision on October 5, 2023. The First Department modified the NY Court’s decision to dismiss Plaintiff’s claim against the Apollo Lenders for breach of the Pledge Agreement in connection with the strict foreclosure and otherwise affirmed the NY Court’s decision. On November 3, 2023, Plaintiff filed motions for leave to appeal the First Department’s decision to the Court of Appeals in both the First Department and the Court of Appeals. On December 19, 2023, the First Department denied Plaintiff’s motion for leave to appeal to the Court of Appeals, which concerned Plaintiff’s claim against the Apollo Lenders for breach of the Pledge Agreement in connection with the strict foreclosure and Plaintiff’s claims against the Spruce Defendants and Apollo Lenders for tortious interference with contract. On April 23, 2024, the Court of Appeals denied Plaintiff’s motion for leave to appeal to the Court of Appeals, which concerned Plaintiff’s claims against Apollo Commercial Real Estate Finance, Inc. and Apollo Global Management, Inc. for tortious interference with contract. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On January 13, 2023, the Apollo Lenders filed their answer and affirmative defenses to the Company’s Second Amended Complaint together with crossclaims against 111 W57th Mezz Investor LLC, Spruce Capital Partners LLC, Joshua Crane, Robert Schwartz, Michael Stern, Kevin Maloney, 111 West 57th Sponsor LLC, 111 West 57th Control LLC, and 111 West 57th Manager LLC (the “Crossclaim Defendants”). The crossclaims were for (1) contribution against all Crossclaim Defendants; (2) indemnification against 111 W57th Mezz Investor LLC, Spruce Capital, Crane, and Schwartz; and (3) a declaratory judgment that 111 W57th Mezz Investor LLC, through Spruce Capital, Crane, and Schwartz, has indemnified the Apollo Lenders against any and all loss that the Apollo Lenders have incurred or may incur in defending against this case. On January 23, 2023, the Apollo Lenders filed a notice of voluntary discontinuance without prejudice, voluntarily discontinuing their first crossclaim for contribution only as it was brought against Stern, Maloney, Sponsor, 111 West 57th Control LLC, and 111 West 57th Manager LLC. On April 30, 2024, the Apollo Lenders filed a motion for an order of discontinuance of their crossclaims, which the Court granted on June 7, 2024, and which was entered on June 12, 2024. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On July 12, 2024, Plaintiff served a motion for leave to appeal to the Court of Appeals the judgment, to the extent it was final, against Apollo Lenders, Spruce Capital Partners LLC, Joshua Crane, and Robert Schwartz. Also on July 12, 2024, Plaintiff filed a notice of appeal to the First Department of the trial court’s order granting Apollo Lenders’ motion for an order of discontinuance of their crossclaims. On September 26, 2024, Plaintiff voluntarily withdrew its unperfected appeal to the First Department by filing a letter application to the court under 22 N.Y.C.R.R. § 1250.2(b)(1). On February 18, 2025, the Court of Appeals granted Plaintiff’s motion for leave to appeal to the Court of Appeals. On February 28, 2025, Plaintiff filed the Preliminary Appeal Statement with the Court of Appeals. On May 27, 2025, Plaintiff filed the opening brief and record with the Court of Appeals and on August 5, 2025, Defendants filed their response briefs. On August 26, 2025, Plaintiff filed their reply brief with the Court of Appeals. The appeal is fully briefed and remains pending before the Court of Appeals. The Court of Appeals held oral argument on April 14, 2026. The appeal remains pending before the Court of Appeals. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On January 30, 2023, Defendant 111 W57 Mezz Investor LLC filed its answer to Plaintiff’s Second Amended Complaint. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On November 15, 2024, Plaintiff filed the Note of Issue, certifying that discovery is complete and that the case is ready for trial. On February 14, 2025, Plaintiff and 111 W57 Mezz Investor LLC served their respective motions for partial summary judgment (Plaintiff) and summary judgment (111 W57 Mezz Investor LLC) and on February 21, 2025, filed the motions with the Court. After briefing was completed, the Court heard oral argument on July 28, 2025. On September 9, 2025, the Court issued a decision denying both motions. The Court held a pre-trial conference on September 30, 2025, and subsequently scheduled a bench trial to begin on November 30, 2026. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> On October 21, 2025, 111 W57 Mezz Investor LLC filed a notice of appeal of the Court’s September 9, 2025, decision on the motions for summary judgment. On October 31, 2025, Plaintiff filed a notice of cross-appeal. On April 20, 2026, 111 W57 Mezz Investor LLC requested, and the Appellate Division, First Department granted, a 60-day extension of time to serve and file its appellate brief and record in the appeal, which are now due on June 20, 2026. </div><div style="text-align: justify; font-size: 10pt;"> Since the Company is not a party to the Loan Agreements, it does not have access to communications with the lenders, except for those individual communications that the Sponsor has elected to share or that have been produced in the ongoing litigation. The Company has continued to demand access to such information, including access to the books and records for the 111 West 57^th Property both under the JV Agreement and as part of the Sponsor Action and the Lender Action. For additional information with regard to the Company’s investment in the 111 West 57^th Property and the Company’s recording of an impairment of its equity investment in the 111 West 57^th Property in 2017, see <span style="font-style: italic;">Note 3.</span>  </div> <div style="text-align: center; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> <span style="font-style: italic;">111 West 57th Investment LLC, et al. v. Kasowitz Benson Torres LLP, et al.</span>, No. 151139/2024 (N.Y. Sup. Ct.). On June 27, 2024, 111 West 57th Investment LLC, derivatively on behalf of 111 West 57th Partners LLC and 111 West 57th Mezz 1 LLC, and 111 West 57th Manager Funding LLC, derivatively on behalf of 111 West 57th Manager LLC (collectively, “Plaintiffs”), filed a Complaint against Kasowitz Benson Torres LLP and Douglas B. Heitner (collectively, “Defendants”) in the Supreme Court of the State of New York, County of New York. Plaintiffs’ claims arise out of Defendants’ representation of 111 West 57th Partners LLC, 111 West 57th Mezz 1 LLC, and 111 West 57th Manager LLC in connection with the real estate development project of 111 West 57th Street (the “Project”) and related financing and other transactions, while simultaneously representing persons and entities with interests adverse to and in conflict with 111 West 57th Partners LLC’s, 111 West 57th Mezz 1 LLC’s, and 111 West 57th Manager LLC’s interests (and the interests of other members of these represented entities), including but not limited to: Michael Stern, Kevin Maloney, and various entities owned and/or controlled by them. Specifically, in representing 111 West 57th Partners LLC, 111 West 57th Mezz 1 LLC, and 111 West 57th Manager LLC throughout the restructuring of the financing and the raising of capital for the Project, including, without limitation, the New York Uniform Commercial Code “strict foreclosure” in 2017 on the Project, Defendants acted to the detriment of these clients to benefit their other, longtime clients, resulting in 111 West 57th Partners LLC losing an extremely valuable asset in the strict foreclosure. Plaintiffs asserted claims for breach of fiduciary duty and legal malpractice. Plaintiffs sought to recover money damages, improperly paid legal fees, costs, attorneys’ fees, and such other relief as is just and proper (together with interest thereon). On July 2, 2024, Plaintiff voluntarily discontinued their claims, without prejudice and without costs, as against Defendant Douglas B. Heitner. On August 16, 2024, Defendant Kasowitz Benson Torres LLP filed a motion to dismiss the Complaint. On August 30, 2024, the parties filed a Stipulation of Discontinuance Without Prejudice, whereby (1) Plaintiffs agreed to discontinue the action without prejudice and without costs to the parties, (2) the parties agreed that all statutes of limitations, laches, or other time-related doctrines were tolled, and (3) the parties agreed that Plaintiffs could recommence the action at any time and without prejudice by refiling a new summons and complaint. On September 3, 2024, in light of the stipulation of discontinuance, the court denied the motion to dismiss as moot. For additional information with regard to the Company’s investment in the 111 West 57th Property, see <span style="font-style: italic;">Note 3</span>. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> <span style="font-style: italic;">AmBase Corp. et al. v. 111 West 57th Sponsor LLC et al.</span>, No. 651782/2024 (N.Y. Sup. Ct.). On April 4, 2024, AmBase Corporation, 111 West 57th Manager Funding LLC, and 111 West 57th Investment LLC, on behalf of itself and derivatively on behalf of 111 West 57th Partners LLC and 111 West 57th Mezz 1 LLC (collectively, “Plaintiffs”), filed a Summons with Notice against 111 West 57th Sponsor LLC, 111 West 57th Control LLC, 111 West 57th Developer LLC, Kevin Maloney, Michael Stern, JDS Construction Group LLC, JDS Development LLC, PMG Construction Group LLC, Property Markets Group, Inc., 111 Construction Manager LLC, Manager Member 111W57 LLC, and John and Jane Does 1–10 (collectively, “Defendants”) in the Supreme Court of the State of New York, County of New York. Plaintiffs’ claims arise out of alleged fraudulent transfers by, between, and/or to Defendants before and during the pendency of the underlying litigation <span style="font-style: italic;">AmBase Corp. et al. v. 111 West 57th Sponsor LLC et al.</span>, Index No. 652301/2016. Specifically, despite knowing of contractual agreements, obligations, and/or claims between Plaintiffs and the Defendants, following the commencement of the suit by Plaintiffs, Defendants allegedly continued to make transfers and/or incur obligations in violation of the law, for no consideration or equivalent value, which rendered the transferor(s) insolvent (or when they were already insolvent), and rendering the transferor(s) unable to meet debts as they become due, unable to pay actual or future creditors, unable to meet business/transaction obligations as they arise, and/or with the actual intent to hinder, delay, and/or defraud Plaintiffs and other creditors. The Summons with Notice further stated that, upon information and belief, the scheme included the transfer to one or more insider(s) and or their affiliates, principals, and/or agents. The scheme was allegedly concealed from Plaintiffs, who were not given the opportunity to consent or to dissent. Plaintiffs alleged that they have suffered damages and demanded relief of no less than $100 million plus Plaintiffs’ own attorneys’ fees and costs, as well as restitution, constructive trust, the voiding of the fraudulent conveyances, statutory remedies, and such other and further relief as the Court deems proper. On August 16, 2024, Defendants filed a Demand for Complaint, requesting that Plaintiffs serve the Complaint in the action upon Defendants. On September 13, 2024, the parties filed a Stipulation of Discontinuance Without Prejudice, whereby (1) Plaintiffs agreed to discontinue the action without prejudice and without costs to the parties, (2) the parties agreed that all statutes of limitations, laches, or other statutory time-related periods or doctrines were tolled, and (3) the parties agreed that Plaintiffs could recommence the action at any time and without prejudice by filing a summons and complaint, which could be served on Defendants and Nominal Defendants by email. For additional information with regard to the Company’s investment in the 111 West 57th Property, see <span style="font-style: italic;">Note 3</span>. </div><div style="text-align: justify; font-size: 10pt;"> <span style="font-style: italic;">AmBase Corp., et al. v. ACREFI Mortgage Lending LLC, et al.</span><span style="font-weight: bold;"> </span>In June 2018, the Company initiated another litigation in the NY Court, Index No. 655031/2017, (the “Apollo Action”). The defendants in the Apollo Action were ACREFI Mortgage Lending, LLC, Apollo Credit Opportunity Fund III AIV I LP, AGRE Debt 1 – 111 W 57, LLC, and Apollo Commercial Real Estate Finance, Inc. (collectively, the “Apollo Defendants”). In the Apollo Action, the Company alleged that the Apollo Defendants aided and abetted the Sponsor, Stern, and Maloney in breaching their fiduciary duties to the Company in connection with the 111 West 57th Property and tortiously interfered with the JV Agreement. The Company was seeking damages as well as punitive damages for tortious interference with the JV Agreement and aiding and abetting the Sponsor’s breaches of their fiduciary duties to the joint venture. The Apollo Defendants filed a motion to dismiss on August 17, 2018. On October 22, 2019, the NY Court entered an order dismissing the Company’s complaint in the Apollo Action in its entirety. On November 8, 2019, the NY Court entered judgment (the “Apollo Dismissal”) dismissing the Apollo Action in favor of the Apollo Defendants. On December 10, 2019, the Company filed a notice of appeal seeking the appeal of the Apollo Dismissal. On August 7, 2020, the Company perfected its appeal of the Apollo Dismissal. After Investment LLC filed its motion to amend the complaint in the Lender Action to add claims against Apollo, the parties to the Apollo Action filed a stipulation to withdraw the appeal in the Apollo Action. For additional information with regard to the Company’s investment in the 111 West 57th Property, see <span style="font-style: italic;">Note 3.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> <span style="font-style: italic;">AmBase Corp., et al. v. Custom House Risk Advisors, Inc., et al.</span><span style="font-weight: bold;"> </span>On April 2, 2020, the Company initiated litigation in the United States District Court for the Southern District of New York, Case No. 1:20-cv-02763-VSB (the “Custom House Action”). The defendants in the Custom House Action were Custom House Risk Advisors, Inc. and Elizabeth Lowe (collectively, the “Custom House Defendants”). In the Custom House Action, the Company alleged that the Custom House Defendants (a) aided and abetted Sponsor, Stern, and Maloney in breaching their fiduciary duties to the Company by structuring an insurance policy to the personal benefit of Sponsor, Stern and Maloney and the detriment of the 111 West 57th Project and concealing the structure and ownership of the insurance policy from the Company and (b) committed fraud by making material misrepresentations about the terms of the policy to the Company, inducing the Company to contribute additional capital to the 111 West 57th Project to cover the costs of the insurance policy. The Company sought damages as well as disgorgement of profits the Custom House Defendants earned from their wrongful conduct. On April 10, 2020, the Custom House Defendants waived service of process. In an agreement dated July 31, 2020, the Company and the Custom House Defendants agreed to certain terms for a settlement and entered into a settlement agreement which requires that the Custom House Defendants satisfy certain conditions prior to any dismissal of the Custom House Action. On December 6, 2021, the Court approved a stipulation dismissing the Company’s claims and agreed to retain jurisdiction to enforce the settlement agreement.  For additional information with regard to the Company’s investment in the 111 West 57^th Property, see <span style="font-style: italic;">Note 3.</span> </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> With respect to its disputes and litigation relating to its interest in the 111 West 57th Property, the Company is pursuing, and will continue to pursue, other options to realize the Company’s investment value, various legal courses of action to protect its legal rights, recovery of its asset value from various sources of recovery, as well as considering other possible economic strategies, including the possible sale of the Company’s interest in and/or rights with respect to the 111 West 57^th Property; however, there can be no assurance that the Company will prevail with respect to any of its claims. </div> <div style="text-align: justify; font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> The Company can give no assurances regarding the outcome of the matters described herein, including as to the effect of Spruce’s actions described herein, whether the Sponsor will perform their contractual commitments to the Company under the JV Agreement, as to what further action, if any, the lenders may take with respect to the project, as to the ultimate resolution of the ongoing litigation proceedings relating to the Company’s investment interest in the 111 West 57^th Property, as to the ultimate effect of the Sponsor’s, the Company’s or the lenders’ actions on the project, as to the completion or ultimate success of the project, or as to the value or ultimate realization of any portion of the Company’s equity investment in the 111 West 57^th Property. For additional information with regard to the Company’s investment in the 111 West 57^th Property, see <span style="font-style: italic;">Note 3.</span> </div> <div style="font-size: 10pt;">  </div> <div style="text-align: justify; font-size: 10pt;"> While the Company’s management is evaluating future courses of action to protect and/or recover the value of the Company’s equity investment in the 111 West 57^th Property, the adverse developments make it uncertain as to whether any such courses of action will be successful. Any such efforts are likely to require sustained effort over a period of time and substantial additional financial capital. Inability to recover all or most of such value would, in all likelihood, have a material adverse effect on the Company’s financial condition and future prospects. The Company can give no assurances with regard to if it will prevail with respect to any of its claims. </div> 100000000 <div> <span style="font-weight: bold;">Note 7 – Litigation Funding Agreement - 2017</span> </div><div style="text-align: justify;">  </div><div style="text-align: justify;"> In 2017, the Company entered into a Litigation Funding Agreement (the “2017 LFA”) with Mr. R.A. Bianco, to provide litigation funding to the Company for litigation costs in connection with the Company’s legal proceedings relating to the Company’s equity investment in the 111 West 57^th Property. </div><div style="text-align: justify;">  </div><div style="text-align: justify; font-size: 10pt;"> In 2019, after receiving approval from the Special Committee, the Company and Mr. R.A. Bianco entered into an amendment to the 2017 LFA (the “2019 LFA Amendment”). In summary the 2019 LFA Amendment provided for the release of Mr. R.A. Bianco from all further funding obligations under the 2017 LFA and that, in the event the Company receives any litigation proceeds from the 111 West 57^th Litigation, such litigation proceeds shall be distributed as follows: </div><div style="text-align: justify;"> </div><div style="text-indent: -27pt; padding-left: 36pt;"> <div style="float: left; width: 27.0pt; white-space: nowrap;"> (i) </div> <div> first, 100% to the Company in an amount equal $7,500,000; and </div> </div><div style="text-indent: -36pt; padding-left: 45pt;">  </div><div style="text-indent: -27pt; text-align: justify; padding-left: 36pt;"> <div style="float: left; width: 27.0pt; white-space: nowrap;"> (ii) </div> <div> thereafter, any additional amounts shall be distributed (a) 75% to the Company and (b) 25% to Mr. R.A. Bianco. </div> </div> 1 7500000 0.75 0.25 <div> <span style="font-weight: bold;">Note 8 – Loan(s) Payable – Related Party – BARC Investments LLC</span> </div><div>  </div><div style="text-align: justify;"> The Company and BARC Investments, LLC, (“BARC”) an affiliate of the Company owned and controlled by two of the Company’s directors and their sibling, entered into an agreement(s) for BARC to provide senior loan(s) to the Company for working capital. The loan(s) are due on the earlier of the date the Company receives funds from any source, (excluding funds received by the Company by any litigation funding entity to fund any of the 111 West 57^th legal proceedings), sufficient to pay all amounts due under the loan(s), including all accrued interest thereon, including without limitation, from a settlement of the 111 West 57^th legal proceedings or (b) the date(s) indicated herein. </div><div style="text-align: justify;">  </div><div style="text-align: justify;"> The Company and BARC further agreed that amounts due pursuant to the loan(s) plus interest can be converted by BARC, at its option, into a litigation funding agreement pari-pasu with any litigation funding agreement entered into by the Company with a litigation funding entity. </div><div style="text-align: justify;">  </div><div style="text-align: justify;"> Information regarding the loan(s) payable – related party - BARC, outstanding as of December 31, 2025, and subsequently converted into the litigation funding agreement as further discussed in <span style="font-style: italic;">Note 10</span>, is as follows: <span style="font-style: italic;">($ in thousands)</span> </div><div style="text-align: center;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="100%"> <tr style="height: 0px; font-size: 0px;"><td style="width: 59%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td></td><td></td><td style="width: 1%;"></td><td> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Date of loan(s)</span></b></div> </td> <td style="text-align: center; width: 1%;" valign="bottom"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center; width: 1%;" valign="bottom"> </td><td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; width: 9%;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Rate</span></b></div> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center; width: 1%;" valign="bottom"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;" valign="bottom"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Due Date</span></b></div> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td style="text-align: center;" valign="top"> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;" valign="top"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">December 31, </span></b></div> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">2025</span></b></div> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">August 2024</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin: 0in; width: 1%;" valign="top"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; padding-left: 10px;" valign="top">6.50</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin: 0in; width: 1%;" valign="top">%</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin: 0in;" valign="top"> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: center;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">August 31, 2027</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); border-image: initial; text-align: left; margin: 0in; width: 1%;" valign="top">$</td><td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); border-image: initial; text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; padding-left: 10px;" valign="top">2,000</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:2;mso-yfti-lastrow:yes"> <td style="padding-left: 10px;" valign="top"> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right; width: 9%; padding-left: 10px;" valign="top"> </td><td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td> <td style="padding-left: 10px;" valign="top"> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 2px solid black;" valign="top">$</td><td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; padding-left: 10px; border-bottom: 2px solid black;" valign="top">2,000</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 2px solid transparent;" valign="top"> </td> </tr> </table><div> </div><div style="text-align: justify;"> Information regarding accrued interest expense on the loan(s) payable – related party – BARC, outstanding prior to the litigation funding agreement(s), is as follows: </div><div style="text-align: justify;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="100%"> <tr style="height: 0px; font-size: 0px;"><td style="width: 88%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="bottom"> <div style="margin: 0in;"><i style="mso-bidi-font-style: normal">(in thousands)</i></div> </td> <td style="text-align: center; padding-left: 10px;" valign="top"> </td> <td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;" valign="top"><div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">December 31,</span></b></div> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">2025</span></b></div> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode:line">Accrued interest expense</span></div> </td> <td style="text-align: right; padding-left: 10px;" valign="top"> </td> <td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; border-collapse: collapse; border-spacing: 0px; width: 1%; border-bottom: 4px double black;" valign="top">$</td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; border-bottom: 4px double black;" valign="top">178</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 4px double transparent;" valign="top"> </td> </tr> </table><div> </div><div style="text-align: justify;"> For additional information regarding the Company’s litigation funding efforts, see<span style="font-style: italic;"> Note 1. </span>For additional information regarding the Company’s legal proceedings relating to the 111 West 57^th Property, including the Company’s challenge to the Strict Foreclosure, see<span style="font-style: italic;"> Note 3</span> and <span style="font-style: italic;">Note 6. </span>For additional information regarding the March 2026 loan(s) payable conversion into a litigation funding agreement and the related accrued interest payable conversion to a note payable see<span style="font-style: italic;"> Note 10.</span> </div><div style="text-align: justify; font-size: 10pt;"> The accrued interest expense outstanding which was converted into a loan(s) payable - related party – BARC, in March 2026, in connection with the litigation funding agreement as further discussed in <span style="font-style: italic;">Note 10</span> below, is as follows: <span style="font-style: italic;">($ in thousands)</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 59%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td style="width: 1%;"></td><td> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td style="width: 1%;"> </td><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Date of loan(s)</span> </td> <td> </td><td style="border-width: medium; border-style: none; border-color: currentcolor;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Rate</span> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Due Date</span> </td> <td style="width: 1%;"> </td><td> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;"> <span style="font-weight: bold;">March 31,<br/> 2026</span> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom; text-align: left;">March 2026</td> <td> </td><td> </td> <td style="text-align: right; vertical-align: bottom;">6.50</td><td style="vertical-align: bottom;">%</td><td> </td> <td style="vertical-align: bottom; white-space: nowrap; text-align: center;">March 31, 2029</td> <td style="border-bottom: 2px solid transparent; width: 1%;"> </td><td style="border-bottom: 2px solid transparent;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; width: 1%;">$</td> <td style="text-align: right; font-weight: bold; border-bottom: 2px solid black; vertical-align: bottom; width: 9%;"><span style="font-weight: normal;">200</span></td><td style="text-align: left; font-weight: bold; border-bottom: 2px solid transparent; width: 1%;"> </td> </tr><tr style="vertical-align: top; height: 1pt;"> <td> </td> <td> </td><td> </td> <td> </td><td> </td><td> </td> <td> </td> <td style="width: 1%; border-bottom: 2px solid transparent;"> </td><td style="border-bottom: 2px solid transparent;"> </td><td style="text-align: left; width: 1%; border-bottom: 2px solid black;">$</td> <td style="text-align: right; font-weight: bold; width: 9%; vertical-align: bottom; border-bottom: 2px solid black;">200</td><td style="text-align: left; font-weight: bold; width: 1%; border-bottom: 2px solid transparent;"> </td> </tr> </table><div style="font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> Information regarding accrued interest expense on the loan(s) payable – related party - BARC is as follows: </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 88%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td></td><td></td><td></td><td></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> <span style="font-style: italic;">(in thousands)</span> </div> </td> <td> </td> <td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;">  <span style="font-weight: bold;">March 31,<br/> 2026</span> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="text-align: justify;"> Accrued interest expense </td> <td> </td> <td style="text-align: left; vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid black;">$</td> <td style="text-align: right; width: 9%; border-bottom: 2px solid black;">1</td><td style="text-align: left; width: 1%; border-bottom: 2px solid transparent;"> </td> </tr> </table> 2 <div style="text-align: justify;"> Information regarding the loan(s) payable – related party - BARC, outstanding as of December 31, 2025, and subsequently converted into the litigation funding agreement as further discussed in <span style="font-style: italic;">Note 10</span>, is as follows: <span style="font-style: italic;">($ in thousands)</span> </div><div style="text-align: center;"> </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="100%"> <tr style="height: 0px; font-size: 0px;"><td style="width: 59%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td></td><td></td><td style="width: 1%;"></td><td> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Date of loan(s)</span></b></div> </td> <td style="text-align: center; width: 1%;" valign="bottom"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center; width: 1%;" valign="bottom"> </td><td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; width: 9%;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Rate</span></b></div> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center; width: 1%;" valign="bottom"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;" valign="bottom"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Due Date</span></b></div> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td style="text-align: center;" valign="top"> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;" valign="top"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">December 31, </span></b></div> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">2025</span></b></div> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">August 2024</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin: 0in; width: 1%;" valign="top"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; padding-left: 10px;" valign="top">6.50</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin: 0in; width: 1%;" valign="top">%</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin: 0in;" valign="top"> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: center;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">August 31, 2027</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); border-image: initial; text-align: left; margin: 0in; width: 1%;" valign="top">$</td><td style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); border-image: initial; text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; padding-left: 10px;" valign="top">2,000</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:2;mso-yfti-lastrow:yes"> <td style="padding-left: 10px;" valign="top"> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right; width: 9%; padding-left: 10px;" valign="top"> </td><td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td> <td style="padding-left: 10px;" valign="top"> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 2px solid black;" valign="top">$</td><td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; padding-left: 10px; border-bottom: 2px solid black;" valign="top">2,000</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 2px solid transparent;" valign="top"> </td> </tr> </table> 0.065 2027-08-31 2000000 2000000 <div style="text-align: justify;"> Information regarding accrued interest expense on the loan(s) payable – related party – BARC, outstanding prior to the litigation funding agreement(s), is as follows: </div><div style="text-align: justify;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="100%"> <tr style="height: 0px; font-size: 0px;"><td style="width: 88%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="bottom"> <div style="margin: 0in;"><i style="mso-bidi-font-style: normal">(in thousands)</i></div> </td> <td style="text-align: center; padding-left: 10px;" valign="top"> </td> <td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;" valign="top"><div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">December 31,</span></b></div> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">2025</span></b></div> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode:line">Accrued interest expense</span></div> </td> <td style="text-align: right; padding-left: 10px;" valign="top"> </td> <td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; border-collapse: collapse; border-spacing: 0px; width: 1%; border-bottom: 4px double black;" valign="top">$</td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; border-bottom: 4px double black;" valign="top">178</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 4px double transparent;" valign="top"> </td> </tr> </table> 178000 <div style="text-align: justify; font-size: 10pt;"> The accrued interest expense outstanding which was converted into a loan(s) payable - related party – BARC, in March 2026, in connection with the litigation funding agreement as further discussed in <span style="font-style: italic;">Note 10</span> below, is as follows: <span style="font-style: italic;">($ in thousands)</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 59%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td style="width: 1%;"></td><td> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td style="width: 1%;"> </td><td> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Date of loan(s)</span> </td> <td> </td><td style="border-width: medium; border-style: none; border-color: currentcolor;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Rate</span> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Due Date</span> </td> <td style="width: 1%;"> </td><td> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;"> <span style="font-weight: bold;">March 31,<br/> 2026</span> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center; width: 1%;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom; text-align: left;">March 2026</td> <td> </td><td> </td> <td style="text-align: right; vertical-align: bottom;">6.50</td><td style="vertical-align: bottom;">%</td><td> </td> <td style="vertical-align: bottom; white-space: nowrap; text-align: center;">March 31, 2029</td> <td style="border-bottom: 2px solid transparent; width: 1%;"> </td><td style="border-bottom: 2px solid transparent;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; width: 1%;">$</td> <td style="text-align: right; font-weight: bold; border-bottom: 2px solid black; vertical-align: bottom; width: 9%;"><span style="font-weight: normal;">200</span></td><td style="text-align: left; font-weight: bold; border-bottom: 2px solid transparent; width: 1%;"> </td> </tr><tr style="vertical-align: top; height: 1pt;"> <td> </td> <td> </td><td> </td> <td> </td><td> </td><td> </td> <td> </td> <td style="width: 1%; border-bottom: 2px solid transparent;"> </td><td style="border-bottom: 2px solid transparent;"> </td><td style="text-align: left; width: 1%; border-bottom: 2px solid black;">$</td> <td style="text-align: right; font-weight: bold; width: 9%; vertical-align: bottom; border-bottom: 2px solid black;">200</td><td style="text-align: left; font-weight: bold; width: 1%; border-bottom: 2px solid transparent;"> </td> </tr> </table> 0.065 2029-03-31 200000 200000 <div style="text-align: justify; font-size: 10pt;"> Information regarding accrued interest expense on the loan(s) payable – related party - BARC is as follows: </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 88%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td></td><td></td><td></td><td></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> <span style="font-style: italic;">(in thousands)</span> </div> </td> <td> </td> <td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;">  <span style="font-weight: bold;">March 31,<br/> 2026</span> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="text-align: justify;"> Accrued interest expense </td> <td> </td> <td style="text-align: left; vertical-align: top; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; border-bottom: 2px solid black;">$</td> <td style="text-align: right; width: 9%; border-bottom: 2px solid black;">1</td><td style="text-align: left; width: 1%; border-bottom: 2px solid transparent;"> </td> </tr> </table> 1000 <div style="font-size: 10pt;"> <span style="font-weight: bold;">Note 9 – Loan(s) Payable – Related Party – Mr. R.A. Bianco</span> </div><div style="font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> The Company and Mr. R.A. Bianco entered into an agreement(s) for Mr. R.A. Bianco to provide senior loan(s) to the Company for working capital. The loan(s) are due on the earlier of the date the Company receives funds from any source, (excluding funds received by the Company by any litigation funding entity to fund any of the 111 West 57^th legal proceedings), sufficient to pay all amounts due under the loan(s), including all accrued interest thereon, including without limitation, from a settlement of the 111 West 57^th legal proceedings or (b) the date(s) indicated herein. </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> The Company and Mr. R.A. Bianco further agreed that amounts due pursuant to the loan(s) plus interest can be converted by Mr. R.A. Bianco, at his option, into a litigation funding agreement pari-passu with any litigation funding agreement entered into by the Company with a litigation funding entity. </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> Information regarding the loan(s) payable - related party – Mr. R.A. Bianco, outstanding as of December 31, 2025, and subsequently converted into the litigation funding agreement as further discussed in <span style="font-style: italic;">Note 10</span>, is as follows: <span style="font-style: italic;">($ in thousands)</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-width: medium; border-style: none; border-color: currentcolor; border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; border-spacing: 0px;" width="100%"> <tr style="height: 0px; font-size: 0px;"><td style="width: 59%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Date of loan(s)</span></b></div> </td> <td style="text-align: center;" valign="bottom"> </td><td style="text-align: center; padding-left: 10px;" valign="bottom"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Rate</span></b></div> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;" valign="bottom"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;" valign="bottom"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Due Date</span></b></div> </td> <td style="text-align: center;" valign="bottom"> </td><td style="text-align: center;" valign="bottom"> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;" valign="bottom"><div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">December 31,</span></b></div> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">2025</span></b></div> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">September 2024</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: center;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">September 30, 2027</span></div> </td> <td style="text-align: right;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top">$</td> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: right; width: 9%;" valign="top">1,000</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:2"> <td valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">December 2024</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">December 31, 2027</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">500</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode:line">March 2025</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk199939707"><span style="layout-grid-mode:line">March 31, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">100</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:4"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk199939707"><span style="layout-grid-mode:line">March 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk199939707"><span style="layout-grid-mode:line">March 31, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">400</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode:line">May 2025</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">May 31, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">100</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:6"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">June 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">June 30, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">500</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">July 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">July 31, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">250</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:8"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">September 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">September 30, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">100</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">September 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">September 30, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">250</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:10"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">November 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">November 30, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">100</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">December 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">December 31, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">300</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:12;mso-yfti-lastrow:yes"> <td style="padding-left: 10px;" valign="top"> </td> <td style="text-align: right;" valign="top"> </td><td style="text-align: right; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; padding-left: 10px;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: right;" valign="top"> </td> <td style="padding-left: 10px;" valign="top"> </td> <td style="text-align: right; width: 1%; border-bottom: 2px solid transparent;" valign="top"> </td><td style="text-align: right; border-bottom: 2px solid transparent;" valign="top"> </td><td style="text-align: left; width: 1%; font-weight: bold; border-bottom: 2px solid black;" valign="top">$</td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; font-weight: bold; border-bottom: 2px solid black;" valign="top">3,600</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 2px solid transparent;" valign="top"> </td> </tr> </table><div style="font-size: 10pt;"> </div><div style="text-align: justify; font-size: 10pt;"> Information regarding the loan(s) payable - related party – Mr. R.A. Bianco, entered into after December 31, 2025, and subsequently converted into the litigation funding agreement as further discussed in <span style="font-style: italic;">Note 10</span>, is as follows: <span style="font-style: italic;">($ in thousands)</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 59%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Date of loan(s)</span> </td> <td> </td><td style="border-width: medium; border-style: none; border-color: currentcolor;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Rate</span> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Due Date</span> </td> <td> </td><td> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;"> <span style="font-weight: bold;">February 28, <br/>2026</span> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;">January 2026</td> <td> </td><td style="text-align: left; vertical-align: bottom;"> </td> <td style="text-align: right; vertical-align: bottom;">6.50</td><td style="text-align: left; vertical-align: bottom;">%</td><td style="text-align: left; vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: center;">January 31, 2029</td> <td style="border-bottom: 4px double transparent;"> </td><td style="border-bottom: 4px double transparent;"> </td><td style="text-align: left; vertical-align: bottom; border-width: medium; border-style: none; border-color: currentcolor;">$</td> <td style="text-align: right; vertical-align: bottom; border-width: medium; border-style: none; border-color: currentcolor;">100</td><td style="text-align: left; vertical-align: bottom; border-bottom: 4px double transparent;"> </td> </tr><tr style="vertical-align: top; height: 1pt;"> <td style="vertical-align: bottom;"> <div> February 2026 </div> </td> <td style="width: 1%;"> </td><td style="width: 1%; text-align: left; vertical-align: bottom;"> </td> <td style="text-align: right; width: 9%; vertical-align: bottom;">6.50</td><td style="text-align: left; width: 1%; vertical-align: bottom;">%</td><td style="text-align: left; vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: center;"> <div> February 28, 2029 </div> </td> <td style="width: 1%; border-bottom: 4px double transparent;"> </td><td style="border-bottom: 4px double transparent;"> </td><td style="width: 1%; text-align: left; vertical-align: bottom; border-bottom: 4px double black;"> </td> <td style="text-align: right; width: 9%; vertical-align: bottom; border-bottom: 4px double black;">300</td><td style="text-align: left; width: 1%; vertical-align: bottom; border-bottom: 4px double transparent;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td><td> </td> <td> </td><td> </td><td> </td> <td> </td> <td style="width: 1%; border-bottom: 2px solid transparent;"> </td><td style="border-bottom: 2px solid transparent;"> </td><td style="width: 1%; text-align: left; vertical-align: bottom; border-bottom: 2px solid black;">$</td> <td style="text-align: right; font-weight: bold; width: 9%; vertical-align: bottom; border-bottom: 2px solid black;">400</td><td style="text-align: left; font-weight: bold; width: 1%; vertical-align: bottom; border-bottom: 2px solid transparent;"> </td> </tr> </table><div style="text-align: justify; font-size: 10pt;"> Information regarding accrued interest expense on the loan(s) payable – related party – Mr. R.A. Bianco, outstanding prior to the litigation funding agreement(s), is as follows: </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; margin-left: 0px; margin-right: 0px; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="100%"> <tr style="height: 0px; font-size: 0px;"><td style="width: 88%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td></td><td></td><td></td><td></td></tr><tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="bottom"> <div style="margin: 0in;"><i style="mso-bidi-font-style: normal">(in thousands)</i></div> </td> <td style="text-align: center;" valign="top"> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;" valign="top"><div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">December 31,</span></b></div> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">2025</span></b></div> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode:line">Accrued interest expense</span></div> </td> <td style="text-align: right; width: 1%; border-bottom: 4px double transparent;" valign="top"> </td><td style="width: 1%; text-align: left; border-bottom: 4px double black;" valign="top">$</td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; padding-left: 10px; border-bottom: 4px double black;" valign="top">179</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 4px double transparent;" valign="top"> </td> </tr> </table><div style="text-align: justify; font-size: 10pt;"> </div><div style="text-align: justify; font-size: 10pt;"> For additional information regarding the Company’s litigation funding effort, see<span style="font-style: italic;"> Note 1. </span>For additional information regarding the Company’s legal proceedings relating to the 111 West 57^th Property, including the Company’s challenge to the Strict Foreclosure, see<span style="font-style: italic;"> Note 3</span> and <span style="font-style: italic;">Note 6. </span>For additional information regarding the March 2026 note(s) payable conversion into a litigation funding agreement and the related accrued interest payable conversion to a loan payable see<span style="font-style: italic;"> Note 10.</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> The accrued interest expense outstanding which was converted into a loan(s) payable - related party – Mr. R.A. Bianco, in March 2026, in connection with the litigation funding agreement as further discussed in <span style="font-style: italic;">Note 10</span> below, is as follows: <span style="font-style: italic;">($ in thousands)</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 59%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 15%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Date of loan(s)</span> </td> <td> </td><td style="border-width: medium; border-style: none; border-color: currentcolor;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Rate</span> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Due Date</span> </td> <td> </td><td> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;"><span style="font-weight: bold;">March 31, <br/> 2026</span> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;">March 2026</td> <td style="vertical-align: bottom;"> </td><td style="vertical-align: bottom;"> </td> <td style="text-align: right; vertical-align: bottom;">6.50</td><td style="vertical-align: bottom;">%</td><td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: center;">March 31, 2029</td> <td style="border-bottom: 2px solid transparent; vertical-align: bottom;"> </td><td style="border-bottom: 2px solid transparent; vertical-align: bottom;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom;">$</td> <td style="text-align: right; font-weight: bold; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom;"><span style="font-weight: normal;">219</span></td><td style="text-align: left; font-weight: bold; border-bottom: 2px solid transparent; vertical-align: bottom;"> </td> </tr><tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td><td style="vertical-align: bottom;"> </td> <td style="text-align: right; vertical-align: bottom;"> </td><td style="vertical-align: bottom;"> </td><td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="border-bottom: 2px solid transparent; vertical-align: bottom;"> </td><td style="border-bottom: 2px solid transparent; vertical-align: bottom;"> </td><td style="text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom;"><b>$</b></td> <td style="text-align: right; font-weight: bold; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom;">219</td><td style="text-align: left; font-weight: bold; border-bottom: 2px solid transparent; vertical-align: bottom;"> </td> </tr> </table><div style="font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> Information regarding accrued interest expense on the loan(s) payable- related party – Mr. R.A. Bianco is as follows: </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 88%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td></td><td></td><td></td><td></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> <span style="font-style: italic;">(in thousands)</span> </div> </td> <td> </td> <td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;"> <span style="font-weight: bold;">March 31,<br/></span>   <span style="font-weight: bold;">2026</span> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="text-align: justify; vertical-align: bottom;"> Accrued interest expense </td> <td> </td> <td style="text-align: left; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; vertical-align: bottom; border-bottom: 2px solid black;">$</td> <td style="text-align: right; width: 9%; vertical-align: bottom; border-bottom: 2px solid black;">1</td><td style="text-align: left; width: 1%; vertical-align: bottom; border-bottom: 2px solid transparent;"> </td> </tr> </table> <div style="text-align: justify; font-size: 10pt;"> Information regarding the loan(s) payable - related party – Mr. R.A. Bianco, outstanding as of December 31, 2025, and subsequently converted into the litigation funding agreement as further discussed in <span style="font-style: italic;">Note 10</span>, is as follows: <span style="font-style: italic;">($ in thousands)</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-width: medium; border-style: none; border-color: currentcolor; border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; border-spacing: 0px;" width="100%"> <tr style="height: 0px; font-size: 0px;"><td style="width: 59%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Date of loan(s)</span></b></div> </td> <td style="text-align: center;" valign="bottom"> </td><td style="text-align: center; padding-left: 10px;" valign="bottom"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Rate</span></b></div> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;" valign="bottom"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;" valign="bottom"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center;" valign="bottom"> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">Due Date</span></b></div> </td> <td style="text-align: center;" valign="bottom"> </td><td style="text-align: center;" valign="bottom"> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;" valign="bottom"><div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">December 31,</span></b></div> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">2025</span></b></div> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;" valign="bottom"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">September 2024</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: center;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">September 30, 2027</span></div> </td> <td style="text-align: right;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top">$</td> <td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: right; width: 9%;" valign="top">1,000</td><td style="border-width: medium; border-style: none; border-color: currentcolor; border-image: initial; text-align: left; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:2"> <td valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">December 2024</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode: line">December 31, 2027</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">500</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode:line">March 2025</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk199939707"><span style="layout-grid-mode:line">March 31, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">100</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:4"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk199939707"><span style="layout-grid-mode:line">March 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk199939707"><span style="layout-grid-mode:line">March 31, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">400</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode:line">May 2025</span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">May 31, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">100</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:6"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">June 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">June 30, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">500</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">July 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">July 31, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">250</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:8"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">September 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">September 30, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">100</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">September 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">September 30, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">250</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:10"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">November 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">November 30, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">100</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">December 2025</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: left; width: 1%;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%;" valign="top">6.50</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 1%;" valign="top">%</td><td style="text-align: left; margin-top: 0in; margin-right: 0in; margin-bottom: 0in;" valign="top"> </td> <td style="text-align: center;" valign="top"> <div style="margin: 0in;"><span style="mso-bookmark: _Hlk206071019"><span style="layout-grid-mode:line">December 31, 2028</span></span></div> </td> <td style="text-align: right; width: 1%;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: left; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); padding-left: 10px;" valign="top"> </td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">300</td><td style="text-align: left; margin: 0in; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:12;mso-yfti-lastrow:yes"> <td style="padding-left: 10px;" valign="top"> </td> <td style="text-align: right;" valign="top"> </td><td style="text-align: right; padding-left: 10px;" valign="top"> </td> <td style="text-align: right; padding-left: 10px;" valign="top"> </td><td style="text-align: right;" valign="top"> </td><td style="text-align: right;" valign="top"> </td> <td style="padding-left: 10px;" valign="top"> </td> <td style="text-align: right; width: 1%; border-bottom: 2px solid transparent;" valign="top"> </td><td style="text-align: right; border-bottom: 2px solid transparent;" valign="top"> </td><td style="text-align: left; width: 1%; font-weight: bold; border-bottom: 2px solid black;" valign="top">$</td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; font-weight: bold; border-bottom: 2px solid black;" valign="top">3,600</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 2px solid transparent;" valign="top"> </td> </tr> </table> 0.065 2027-09-30 1000000 0.065 2027-12-31 500000 0.065 2028-03-31 100000 0.065 2028-03-31 400000 0.065 2028-05-31 100000 0.065 2028-06-30 500000 0.065 2028-07-31 250000 0.065 2028-09-30 100000 0.065 2028-09-30 250000 0.065 2028-11-30 100000 0.065 2028-12-31 300000 3600000 <div style="text-align: justify; font-size: 10pt;"> Information regarding the loan(s) payable - related party – Mr. R.A. Bianco, entered into after December 31, 2025, and subsequently converted into the litigation funding agreement as further discussed in <span style="font-style: italic;">Note 10</span>, is as follows: <span style="font-style: italic;">($ in thousands)</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 59%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td><td style="width: 1%;"> </td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Date of loan(s)</span> </td> <td> </td><td style="border-width: medium; border-style: none; border-color: currentcolor;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Rate</span> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Due Date</span> </td> <td> </td><td> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;"> <span style="font-weight: bold;">February 28, <br/>2026</span> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;">January 2026</td> <td> </td><td style="text-align: left; vertical-align: bottom;"> </td> <td style="text-align: right; vertical-align: bottom;">6.50</td><td style="text-align: left; vertical-align: bottom;">%</td><td style="text-align: left; vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: center;">January 31, 2029</td> <td style="border-bottom: 4px double transparent;"> </td><td style="border-bottom: 4px double transparent;"> </td><td style="text-align: left; vertical-align: bottom; border-width: medium; border-style: none; border-color: currentcolor;">$</td> <td style="text-align: right; vertical-align: bottom; border-width: medium; border-style: none; border-color: currentcolor;">100</td><td style="text-align: left; vertical-align: bottom; border-bottom: 4px double transparent;"> </td> </tr><tr style="vertical-align: top; height: 1pt;"> <td style="vertical-align: bottom;"> <div> February 2026 </div> </td> <td style="width: 1%;"> </td><td style="width: 1%; text-align: left; vertical-align: bottom;"> </td> <td style="text-align: right; width: 9%; vertical-align: bottom;">6.50</td><td style="text-align: left; width: 1%; vertical-align: bottom;">%</td><td style="text-align: left; vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: center;"> <div> February 28, 2029 </div> </td> <td style="width: 1%; border-bottom: 4px double transparent;"> </td><td style="border-bottom: 4px double transparent;"> </td><td style="width: 1%; text-align: left; vertical-align: bottom; border-bottom: 4px double black;"> </td> <td style="text-align: right; width: 9%; vertical-align: bottom; border-bottom: 4px double black;">300</td><td style="text-align: left; width: 1%; vertical-align: bottom; border-bottom: 4px double transparent;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td><td> </td> <td> </td><td> </td><td> </td> <td> </td> <td style="width: 1%; border-bottom: 2px solid transparent;"> </td><td style="border-bottom: 2px solid transparent;"> </td><td style="width: 1%; text-align: left; vertical-align: bottom; border-bottom: 2px solid black;">$</td> <td style="text-align: right; font-weight: bold; width: 9%; vertical-align: bottom; border-bottom: 2px solid black;">400</td><td style="text-align: left; font-weight: bold; width: 1%; vertical-align: bottom; border-bottom: 2px solid transparent;"> </td> </tr> </table><div style="text-align: justify; font-size: 10pt;"> The accrued interest expense outstanding which was converted into a loan(s) payable - related party – Mr. R.A. Bianco, in March 2026, in connection with the litigation funding agreement as further discussed in <span style="font-style: italic;">Note 10</span> below, is as follows: <span style="font-style: italic;">($ in thousands)</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 59%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 15%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Date of loan(s)</span> </td> <td> </td><td style="border-width: medium; border-style: none; border-color: currentcolor;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Rate</span> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td><td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> <td style="border-width: 2px medium; border-style: solid none; border-color: rgb(0, 0, 0) currentcolor; text-align: center; vertical-align: bottom;"> <span style="font-weight: bold;">Due Date</span> </td> <td> </td><td> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;"><span style="font-weight: bold;">March 31, <br/> 2026</span> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> </tr> <tr style="vertical-align: top; background-color: rgb(204, 238, 255);"> <td style="vertical-align: bottom;">March 2026</td> <td style="vertical-align: bottom;"> </td><td style="vertical-align: bottom;"> </td> <td style="text-align: right; vertical-align: bottom;">6.50</td><td style="vertical-align: bottom;">%</td><td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom; text-align: center;">March 31, 2029</td> <td style="border-bottom: 2px solid transparent; vertical-align: bottom;"> </td><td style="border-bottom: 2px solid transparent; vertical-align: bottom;"> </td><td style="text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom;">$</td> <td style="text-align: right; font-weight: bold; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom;"><span style="font-weight: normal;">219</span></td><td style="text-align: left; font-weight: bold; border-bottom: 2px solid transparent; vertical-align: bottom;"> </td> </tr><tr style="vertical-align: top;"> <td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td><td style="vertical-align: bottom;"> </td> <td style="text-align: right; vertical-align: bottom;"> </td><td style="vertical-align: bottom;"> </td><td style="vertical-align: bottom;"> </td> <td style="vertical-align: bottom;"> </td> <td style="border-bottom: 2px solid transparent; vertical-align: bottom;"> </td><td style="border-bottom: 2px solid transparent; vertical-align: bottom;"> </td><td style="text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom;"><b>$</b></td> <td style="text-align: right; font-weight: bold; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom;">219</td><td style="text-align: left; font-weight: bold; border-bottom: 2px solid transparent; vertical-align: bottom;"> </td> </tr> </table> 0.065 2029-01-31 100000 0.065 2029-02-28 300000 400000 <div style="text-align: justify; font-size: 10pt;"> Information regarding accrued interest expense on the loan(s) payable – related party – Mr. R.A. Bianco, outstanding prior to the litigation funding agreement(s), is as follows: </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; margin-left: 0px; margin-right: 0px; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;" width="100%"> <tr style="height: 0px; font-size: 0px;"><td style="width: 88%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td></td><td></td><td></td><td></td></tr><tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes"> <td valign="bottom"> <div style="margin: 0in;"><i style="mso-bidi-font-style: normal">(in thousands)</i></div> </td> <td style="text-align: center;" valign="top"> </td><td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;" valign="top"><div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">December 31,</span></b></div> <div style="margin: 0in;"><b style="mso-bidi-font-weight:normal"><span style="layout-grid-mode:line">2025</span></b></div> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top"> <div style="margin: 0in;"><span style="layout-grid-mode:line">Accrued interest expense</span></div> </td> <td style="text-align: right; width: 1%; border-bottom: 4px double transparent;" valign="top"> </td><td style="width: 1%; text-align: left; border-bottom: 4px double black;" valign="top">$</td> <td style="text-align: right; margin-top: 0in; margin-right: 0in; margin-bottom: 0in; width: 9%; padding-left: 10px; border-bottom: 4px double black;" valign="top">179</td><td style="text-align: left; margin: 0in; width: 1%; border-bottom: 4px double transparent;" valign="top"> </td> </tr> </table> 179000 0.065 2029-03-31 219000 219000 <div style="text-align: justify; font-size: 10pt;"> Information regarding accrued interest expense on the loan(s) payable- related party – Mr. R.A. Bianco is as follows: </div><div style="text-align: justify; font-size: 10pt;">  </div><table cellpadding="0" style="border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 88%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 9%;"></td><td style="width: 1%;"></td></tr><tr style="height: 0px; font-size: 0px;"><td></td><td></td><td></td><td></td><td></td></tr><tr style="height: 0px; font-size: 0px;"><td> </td><td> </td><td> </td><td> </td><td> </td></tr><tr style="vertical-align: top; height: 1.0pt;"> <td style="vertical-align: bottom;"> <div> <span style="font-style: italic;">(in thousands)</span> </div> </td> <td> </td> <td colspan="2" style="text-align: center; border-color: rgb(0, 0, 0) currentcolor; white-space: nowrap; border-width: 2px medium; border-style: solid none;"> <span style="font-weight: bold;">March 31,<br/></span>   <span style="font-weight: bold;">2026</span> </td> <td style="border-width: medium; border-style: none; border-color: currentcolor; text-align: center;"> </td> </tr> <tr style="vertical-align: top; height: 1pt; background-color: rgb(204, 238, 255);"> <td style="text-align: justify; vertical-align: bottom;"> Accrued interest expense </td> <td> </td> <td style="text-align: left; height: 1pt; border-spacing: 0px; border-collapse: collapse; width: 1%; vertical-align: bottom; border-bottom: 2px solid black;">$</td> <td style="text-align: right; width: 9%; vertical-align: bottom; border-bottom: 2px solid black;">1</td><td style="text-align: left; width: 1%; vertical-align: bottom; border-bottom: 2px solid transparent;"> </td> </tr> </table> 1000 <div style="text-align: justify; font-size: 10pt;"> <span style="font-weight: bold;">Note 10 – Litigation Funding Agreement(s) - 2026</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> The Company had been considering and evaluating various strategic funding and financing alternatives in order to raise capital. Possible funding alternatives considered have included a variety of sources, including but not limited to litigation funding agreements, offerings of equity or debt securities, loans, or any combination thereof with third parties, existing shareholders of the Company and/or Company management. </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> </div><div style="margin: 0in; text-align: justify;">In order to provide the necessary cash resources to continue operations and continue the litigation related to the 111 West 57th Property, and pay amounts currently owed, on March 2, 2026, <span style="layout-grid-mode:line">the Company and RAB entered into a litigation funding agreement (the “RAB 2026 LFA”), pursuant to which </span>the Company and RAB agreed that RAB will provide up to an aggregate initial amount of $6,000,000 (plus such additional amounts as may be necessary from time to time and as agreed to by the Company and RAB at such time), (the “Litigation Fund Amount”). Pursuant to the RAB 2026 LFA the promissory notes between RAB and the Company outstanding as of March 2, 2026, in the aggregate principal amount of $4,000,000 (the “RAB Promissory Notes”), are deemed converted to the RAB 2026 LFA.<span style="mso-spacerun:yes">  </span>The accrued but unpaid interest on the RAB Promissory Notes stayed outstanding and will continue to accrue interest on the same terms as the RAB Promissory Notes as further detailed in <i>Note 9</i>, herein. Additionally, (i) in March 2026, RAB paid the Company $1,000,000 to be used to pay a portion of<span style="mso-spacerun:yes">  </span>outstanding litigation related expenses and (ii) in March 2026, RAB paid the Company an additional $500,000, and per the RAB 2026 LFA, RAB is committed to paying the Company an additional $500,000, as needed, to be retained and used by the Company for working capital needs and certain other litigation related expenses, including expert witness fees, consulting fees and disbursements incurred by the Company or reasonably anticipated to be incurred by the Company. The date that the entire initial litigation funding amount is received by the Company shall be deemed to be the “<span style="mso-bidi-font-weight: bold">Funding Date</span>”. </div><div style="text-align: justify; font-size: 10pt;"> </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> In consideration for RAB’s commitment to provide the Litigation Fund Amount, the Company shall distribute any and all consideration it actually receives in connection with the 111 West 57^th litigations, including an amount in cash equal to the fair market value of any non-cash consideration received, whether by judgment, award, order, settlement or otherwise, including, without limitation, any damages (punitive or otherwise), penalties, or interest (such amounts, collectively, the “<span style="font-weight: bold;">Litigation Proceeds</span>”) as follows: </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-indent: -18pt; text-align: justify; padding-left: 45pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-size: 10pt;"> <span style="font-family: Symbol;">–</span> </div> <div style="font-size: 10pt;"> Twenty-five percent (25%) of all Litigation Proceeds that are in excess of $7,500,000 (the “<span style="font-weight: bold;">Preliminary Company Preference Amount</span>”) to RAB, pursuant to the 2019 LFA Amendment. </div> </div><div style="text-align: justify; margin-left: 45pt; font-size: 10pt;">  </div><div style="text-indent: -18pt; text-align: justify; padding-left: 45pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-size: 10pt;"> <span style="font-family: Symbol;">–</span> </div> <div style="font-size: 10pt;"> The remaining seventy-five percent (75%) of all Litigation Proceeds that are in excess of the Preliminary Company Preference Amount, <span style="font-weight: bold; font-style: italic; text-decoration: underline;">plus</span> the Preliminary Company Preference Amount, to RAB and the Company as follows: </div> </div><div style="text-align: justify; margin-left: 45pt; font-size: 10pt;">  </div><div style="text-indent: -18pt; text-align: justify; padding-left: 63pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-size: 10pt;"> ● </div> <div style="font-size: 10pt;"> If and to the extent the Litigation Proceeds are received after the Funding Date but on or before September 30, 2026: (x) first, to RAB until the aggregate amount received by RAB hereunder equals the sum of the Litigation Fund Amount plus an amount equal to fifty percent (50%) of the aggregate Litigation Fund Amount, and (y) then, the remaining Litigation Proceeds, if any, to the Company; and </div> </div><div style="text-align: justify; margin-left: 63pt; font-size: 10pt;">  </div><div style="text-indent: -18pt; text-align: justify; padding-left: 63pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-size: 10pt;"> ● </div> <div style="font-size: 10pt;"> If and to the extent the Litigation Proceeds are received after September 30, 2026 but on or before the twelve (12) month anniversary of the Funding Date: (x) first, to RAB until the aggregate amount received by RAB hereunder equals the sum of the Litigation Fund Amount plus one (1) times the aggregate Litigation Fund Amount, and (y) then, the remaining Litigation Proceeds, if any, to the Company. </div> </div><div style="text-align: justify; margin-left: 63pt; font-size: 10pt;">  </div><div style="text-indent: -18pt; text-align: justify; padding-left: 63pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-size: 10pt;"> ● </div> <div style="font-size: 10pt;"> If and to the extent the Litigation Proceeds are received after the twelve (12) month anniversary of the Funding Date but on or before the twenty four (24) month anniversary of the Funding Date: (x) first, to RAB until the aggregate amount received by RAB hereunder equals the sum of the Litigation Fund Amount plus one and one-half (1.5) times the aggregate Litigation Fund Amount, and (y) then, the remaining Litigation Proceeds, if any, to the Company. </div> </div><div style="text-align: justify; margin-left: 63pt; font-size: 10pt;">  </div><div style="text-indent: -18pt; text-align: justify; padding-left: 63pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-size: 10pt;"> ● </div> <div style="font-size: 10pt;"> If and to the extent the Litigation Proceeds are received after the twenty-four (24) month anniversary of the Funding Date: (x) first, to RAB until the aggregate amount received by RAB hereunder equals the sum of the Litigation Fund Amount plus one and eight tenths (1.8) times the aggregate Litigation Fund Amount, and (y) then, the remaining Litigation Proceeds, if any, to the Company. </div> </div><div style="text-align: justify; font-size: 10pt;"> The Company also had a note payable to BARC Investments LLC (“BARC”) of $2,000,000 plus accrued interest (the “2024 BARC Note”). Pursuant to the 2024 BARC Note, the amounts due BARC, at its option, could be converted into a litigation funding agreement pari-passu with other litigation funding entity(ies). In order to allow the Company to use its existing working capital and the proceeds of the Litigation Fund Amount (as defined in the LFA agreements) to be provided by other Funders to finance the Company’s continued expenses with respect to the Future Recovery Litigation, rather than be required to apply or reserve such working capital and proceeds for repayment of the 2024 BARC Note, in March 2026, BARC exercised its option under the 2024 BARC Note and the Company and BARC have entered into an agreement (the “BARC 2026 LFA”) pursuant to which BARC converted the $2,000,000 principal amount of the 2024 BARC Note, (plus such additional amounts as may be necessary from time to time and as agreed to by the Company and BARC at such time), into a right to receive Litigation Proceeds on terms pari-passu with those provided under the RAB 2026 LFA. The accrued but unpaid interest on the 2024 BARC Note stayed outstanding and will continue to accrue interest on the same terms as the 2024 BARC Note as further detailed in <span style="font-style: italic;">Note 8</span>, herein. </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> As part of the RAB 2026 LFA and the BARC 2026 LFA, the Company shall distribute any consideration it actually receives in connection with the 111 West 57^th Litigations in accordance with the terms of the RAB 2026 LFA and BARC 2026 LFA. The terms of the RAB 2026 LFA and BARC 2026 LFA will therefore further reduce the Company’s share of any future litigation proceeds. </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> The RAB 2026 LFA and the BARC 2026 LFA also contain customary representations and warranties and agreements of the parties and customary indemnification rights and obligations of the parties. The foregoing description(s) of the RAB 2026 LFA and the BARC 2026 LFA are qualified entirely by reference to the agreements, a copy of the RAB 2026 LFA and the BARC 2026 LFA were filed as an exhibit to the Company’s previously filed reports with the Securities and Exchange Commission and are incorporated herein by reference. </div> 6000000 4000000 1000000 500000 500000 0.25 7500000 0.75 0.50 1.5 1.8 2000000 2000000 <div style="text-align: justify; font-size: 10pt;"> <span style="font-weight: bold;">Note 11 – Segment Reporting</span> </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> The Company manages the Company’s business activities on a consolidated basis and operates as a <span style="-sec-ix-hidden: hidden-fact-6">single</span> operating segment. The Company currently has no operations, does not generate operating revenues and the Company’s assets consist of cash and cash equivalents. The Company is engaged in the management of its assets and liabilities. The Company is principally involved with disputes and litigation relating to its interest in the 111 West 57th Property, and is pursuing, and will continue to pursue, options to realize the Company’s investment value, and to protect its legal rights, and recovery of its asset value from various sources of recovery. </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> The accounting policies of the Company as a <span style="-sec-ix-hidden: hidden-fact-7">single</span> segment are the same as those described in Note 2. The chief operating decision maker (“CODM”) evaluates the Company’s financial needs and legal proceeding results based on the progress of the current legal proceedings in consultation with the Company’s legal counsel to determine how to allocate resources of the Company as a whole, including continuing to pursue recovery in the Company’s legal proceedings. The Company does not have any revenue; therefore, such information is not presented. </div><div style="text-align: justify; font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> Please refer to the Company’s condensed consolidated balance sheets and statements of operations for the total assets and operating financial results for the Company, including the listing of significant segment expenses regularly provided to the CODM, which are the same for the Company on a consolidated basis. </div> <div style="font-size: 10pt;"> <span style="font-weight: bold;">Note 12 – Subsequent Events</span> </div><div style="font-size: 10pt;">  </div><div style="text-align: justify; font-size: 10pt;"> The Company has performed a review of events subsequent to the balance sheet dated March 31, 2026, through the filing of these interim financial statements. Other than as discussed herein, the Company has no events, subsequent to March 31, 2026, and through the date these unaudited condensed consolidated financial statements were issued. </div> false false false false FL Yes Yes 0.5 1 1 0000020639 false Q1 --12-31