Note 10 – COMMITMENTS AND CONTINGENCIES

Foreclosure proceeding. A notice of foreclosure sale covering the commercial condominium unit at 3628 Georgia Avenue, NW was executed on June 11, 2026, scheduling a sale for July 16, 2026. The Company’s subsidiary, the noteholder and a third party have entered into an agreement under which the third party purchases the note, the sale is postponed, and the amount required to pay the loan in full is limited. The Company disputes the amounts asserted above the contractual balance of the note, which include trustee, advertising and attorneys’ fees, and is pursuing its remedies with respect to those amounts and to the conduct of the foreclosure. No liability has been recorded for the disputed amounts because a loss is not considered probable and the amount is not reasonably estimable.

Construction commitments. The Company holds escrow holdbacks of $1,842,939 at June 30, 2026, established at the closings of its property financings and designated for rehabilitation, interest, insurance and real estate taxes. Draws are made against the construction holdback as work is completed.

Redevelopment obligations. The Memorial Hospital redevelopment is expected to require substantial additional capital and ongoing carrying costs, including planning, property maintenance, taxes, insurance, professional fees, debt service, and any required regulatory or municipal approvals.

Guarantees. The Company is among the guarantors of the Bogdan Capital LLC loan to Memorial Real Estate Group LLC, the principal of which was increased to $2,250,000 in June 2026.