RESTATEMENT OF PREVIOUSLY ISSUED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

12 Months Ended

Dec. 31, 2021

RESTATEMENT OF PREVIOUSLY ISSUED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

RESTATEMENT OF PREVIOUSLY ISSUED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 16 – RESTATEMENT OF PREVIOUSLY ISSUED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company identified errors in its previously issued annual and interim financial statements that required restatements, as well as errors that were determined individually, and in the aggregate, quantitatively and qualitatively immaterial that required revisions.  As such the Company has restated and revised its (i) consolidated interim financial statements for the three months ended March 31, 2021, the three and six months ended June 30, 2021, and the three and nine months ended September 30, 2021, as illustrated in this Note 16; collectively referred to as the “Restatement” or “Revision”.

During the three month period ended June 30, 2022, the Company identified areas of restatement errors. Adjustments depicted in the tables below relate to the following:

(a) an error in the accounting treatment regarding the overcapitalization of internally allocated construction related costs related to the development project at 77 Greenwich Street;

(b) a disclosure error in the classification on the balance sheets of our 77 Greenwich property which was classified as real estate under development in real estate and is now classified as residential condominium units for sale;

(c) a disclosure error in the classification on the statements of cash flows of our 77 Greenwich property relating to  additions and sales of condominiums where they were reported in the statement of cash flows under cash flows from investing activities when they should have been reported in cash flows from operations.  

During the three month period ended March 31, 2022, the Company identified one revision error. Adjustments depicted in the tables below relate to the following:

(d) an error in the accounting treatment of a property that, upon emergence from bankruptcy, was classified as real estate under development, but was not subsequently reported as an operating property when circumstances at the property changed.

During the year ended December 31, 2021, the Company identified one revision error. Adjustments depicted in the tables below relate to the following:

(e) an error in the accounting treatment regarding certain advertising and marketing costs which were capitalized to construction costs at the development project at 77 Greenwich Street and should have been expensed as incurred.  

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and share amounts)

	As of March 31, 2021
	As Previously		Restatement
	Reported		Impact		As Restated
ASSETS
Real estate, net	$	289,294	$	(219,941)	$	69,353
Residential condominium units for sale		—		213,223		213,223
Cash and cash equivalents		5,034		—		5,034
Restricted cash		6,694		—		6,694
Prepaid expenses and other assets, net		3,343		—		3,343
Investments in unconsolidated joint ventures		18,814		—		18,814
Receivables		919		—		919
Deferred rents receivable		102		—		102
Right-of-use asset		1,478		—		1,478
Intangible assets, net		8,987		—		8,987
Total assets	$	334,665	$	(6,718)	$	327,947
LIABILITIES
Loans payable, net	$	207,317	$	—	$	207,317
Corporate credit facility, net		32,104		—		32,104
Secured line of credit, net		8,950		—		8,950
Note payable		5,863		—		5,863
Accounts payable and accrued expenses		14,368		—		14,368
Pension liabilities		—		—		—
Lease liability		1,626		—		1,626
Warrant liability		3,196		—		3,196
Total liabilities		273,424		—		273,424
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value; 40,000,000 shares authorized; no shares issued and outstanding		—		—		—
Preferred stock, $0.01 par value; 2 shares authorized, no shares issued and outstanding at March 31, 2021		—		—		—
Special stock, $0.01 par value; 1 share authorized, issued and outstanding at March 31, 2021		—		—		—
Common stock, $0.01 par value; 79,999,997 shares authorized; 38,840,508 shares issued at March 31, 2021; 32,442,633 shares outstanding at March 31, 2021		388		—		388
Additional paid-in capital		136,151		—		136,151
Treasury stock (6,397,875 shares at March 31, 2021)		(57,166)		—		(57,166)
Accumulated other comprehensive loss		(2,040)		—		(2,040)
Accumulated deficit		(16,092)		(6,718)		(22,810)
Total stockholders' equity		61,241		(6,718)		54,523
Total liabilities and stockholders' equity	$	334,665	$	(6,718)	$	327,947

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(In thousands, except share amounts)

	For the Three Months Ended March 31, 2021
	As Previously		Revision
	Reported		Impact		As Revised
Revenues
Rental revenues	$	299	$	148	$	447
Other income		46		—		46
Total revenues		345		148		493
Operating Expenses
Property operating expenses		1,655		252		1,907
Real estate taxes		20		59		79
General and administrative		1,203		40		1,243
Pension related costs		163		—		163
Depreciation and amortization		715		285		1,000
Total operating expenses		3,756		636		4,392
Operating loss		(3,411)		(488)		(3,899)
Equity in net loss from unconsolidated joint ventures		(372)		—		(372)
Unrealized loss on warrants		(1,977)		—		(1,977)
Interest expense, net		(601)		(274)		(875)
Interest expense - amortization of deferred finance costs		(193)		(68)		(261)
Loss before taxes		(6,554)		(830)		(7,384)
Tax expense		(35)		—		(35)
Net loss attributable to common stockholders	$	(6,589)	$	(830)	$	(7,419)
Other comprehensive loss:
Unrealized gain on pension liability		119		—		119
Comprehensive loss attributable to common stockholders	$	(6,470)	$	(830)	$	(7,300)
Loss per share - basic and diluted	$	(0.20)	$	(0.03)	$	(0.23)
Weighted average number of common shares - basic and diluted		32,591		32,591		32,591

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

FOR THE THREE MONTHS ENDED MARCH 31, 2021
											Accumulated
				Additional							Other
	Common Stock			Paid-In		Treasury Stock			Accumulated		Comprehensive
	Shares	Amount		Capital		Shares	Amount		Deficit		Loss		Total
As Previously Reported
Balance as of December 31, 2020	38,345	$	383	$	135,978	(6,173)	$	(56,791)	$	(9,503)	$	(2,159)	$	67,908
Net loss attributable to common stockholders	—		—		—	—		—		(6,589)		—		(6,589)
Settlement of stock awards	496		5		—	(225)		(375)		—		—		(370)
Unrealized gain on pension liability	—		—		—	—		—		—		119		119
Stock-based compensation expense	—		—		173	—		—		—		—		173
Balance as of March 31, 2021	38,841	$	388	$	136,151	(6,398)	$	(57,166)	$	(16,092)	$	(2,040)	$	61,241
Revision Impact
Balance as of December 31, 2020	—	$	—	$	—	—	$	—	$	(5,888)	$	—	$	(5,888)
Net loss attributable to common stockholders	—		—		—	—		—		(830)		—		(830)
Settlement of stock awards	—		—		—	—		—		—		—		—
Unrealized gain on pension liability	—		—		—	—		—		—		—		—
Stock-based compensation expense	—		—		—	—		—		—		—		—
Balance as of March 31, 2021	—	$	—	$	—	—	$	—	$	(6,718)	$	—	$	(6,718)
As Revised
Balance as of December 31, 2020	38,345	$	383	$	135,978	(6,173)	$	(56,791)	$	(15,391)	$	(2,159)	$	62,020
Net loss attributable to common stockholders	—		—		—	—		—		(7,419)		—		(7,419)
Settlement of stock awards	496		5		—	(225)		(375)		—		—		(370)
Unrealized gain on pension liability	—		—		—	—		—		—		119		119
Stock-based compensation expense	—		—		173	—		—		—		—		173
Balance as of March 31, 2021	38,841	$	388	$	136,151	(6,398)	$	(57,166)	$	(22,810)	$	(2,040)	$	54,523

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Three Months Ended March 31, 2021
	As Previously		Restatement
	Reported		Impact		As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss attributable to common stockholders	$	(6,589)	$	(830)	$	(7,419)
Adjustments to reconcile net loss attributable to common stockholders to net cash used in operating activities:
Depreciation and amortization and amortization of deferred finance costs		908		353		1,261
Stock-based compensation expense		133		—		133
Deferred rents receivable		(12)		—		(12)
Other non-cash adjustments - pension expense		119		—		119
Unrealized loss on warrants		1,977		—		1,977
Equity in net loss from unconsolidated joint ventures		372		—		372
Distributions from unconsolidated joint ventures		194		—		194
(Increase) decrease in operating assets:
Residential condominium units for sale		—		(11,672)		(11,672)
Receivables		47		—		47
Prepaid expenses and other assets, net		(371)		—		(371)
Increase in operating liabilities:
Accounts payable and accrued expenses		1,294		—		1,294
Net cash used in operating activities		(1,928)		(12,149)		(14,077)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to real estate		(12,202)		12,149		(53)
Net cash used in investing activities		(12,202)		12,149		(53)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loans and corporate credit facility		8,980		—		8,980
Proceeds from secured line of credit		1,200		—		1,200
Payment of finance costs		(21)		—		(21)
Settlement of stock awards		(370)		—		(370)
Net cash provided by financing activities		9,789		—		9,789
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(4,341)		—		(4,341)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD		16,069		—		16,069
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	11,728	$	—	$	11,728
CASH AND CASH EQUIVALENTS, BEGINNING PERIOD	$	6,515	$	—	$	6,515
RESTRICTED CASH, BEGINNING OF PERIOD		9,554		—		9,554
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD	$	16,069	$	—	$	16,069
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	5,034	$	—	$	5,034
RESTRICTED CASH, END OF PERIOD		6,694		—		6,694
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	11,728	$	—	$	11,728
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for: Interest	$	4,130	$	—	$	4,130
Cash paid during the period for: Taxes	$	46	$	—	$	46
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued development costs included in accounts payable and accrued expenses	$	7,496	$	(7,496)	$	—
Capitalized amortization of deferred financing costs and warrants	$	760	$	(68)	$	692
Capitalized stock-based compensation expense	$	39	$	(2)	$	37

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and share amounts)

	As of June 30, 2021
	As Previously		Restatement
	Reported		Impact		As Restated
ASSETS
Real estate, net	$	299,814	$	(231,151)	$	68,663
Residential condominium units for sale		—		222,713		222,713
Cash and cash equivalents		2,169		—		2,169
Restricted cash		7,626		—		7,626
Prepaid expenses and other assets, net		2,934		—		2,934
Investments in unconsolidated joint ventures		18,318		—		18,318
Receivables		146		—		146
Deferred rents receivable		106		—		106
Right-of-use asset		1,389		—		1,389
Intangible assets, net		8,802		—		8,802
Total assets	$	341,304	$	(8,438)	$	332,866
LIABILITIES
Loans payable, net	$	215,193	$	—	$	215,193
Corporate credit facility, net		32,351		—		32,351
Secured line of credit, net		8,950		—		8,950
Note payable		5,863		—		5,863
Accounts payable and accrued expenses		17,458		—		17,458
Lease liability		1,536		—		1,536
Warrant liability		3,129		—		3,129
Total liabilities		284,480		—		284,480
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value; 40,000,000 shares authorized; no shares issued and outstanding		—		—		—
Preferred stock, $0.01 par value; 2 shares authorized, no shares issued and outstanding at June 30, 2021		—		—		—
Special stock, $0.01 par value; 1 share authorized, issued and outstanding at June 30, 2021		—		—		—
Common stock, $0.01 par value; 79,999,997 shares authorized; 38,853,433 shares issued at June 30, 2021; 32,455,568 shares outstanding at June 30, 2021		389		—		389
Additional paid-in capital		136,329		—		136,329
Treasury stock (6,397,875 shares at June 30, 2021)		(57,166)		—		(57,166)
Accumulated other comprehensive loss		(1,922)		—		(1,922)
Accumulated deficit		(20,806)		(8,438)		(29,244)
Total stockholders' equity		56,824		(8,438)		48,386
Total liabilities and stockholders' equity	$	341,304	$	(8,438)	$	332,866

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(In thousands, except share amounts)

	For the Three Months Ended June 30, 2021						For the Six Months Ended June 30, 2021
	As Previously		Restatement				As Previously		Restatement
	Reported		Impact		As Restated		Reported		Impact		As Restated
Revenues
Rental revenues	$	425	$	152	$	577	$	724	$	300	$	1,024
Other income		256		—		256		302		—		302
Total revenues		681		152		833		1,026		300		1,326
Operating Expenses
Property operating expenses		1,463		425		1,888		3,118		677		3,795
Real estate taxes		20		59		79		40		118		158
General and administrative		1,235		152		1,387		2,438		192		2,630
Pension related costs		162		—		162		325		—		325
Depreciation and amortization		715		285		1,000		1,430		570		2,000
Total operating expenses		3,595		921		4,516		7,351		1,557		8,908
Operating loss		(2,914)		(769)		(3,683)		(6,325)		(1,257)		(7,582)
Equity in net loss from unconsolidated joint ventures		(264)		—		(264)		(636)		—		(636)
Unrealized gain (loss) on warrants		67		—		67		(1,910)		—		(1,910)
Interest expense, net		(881)		(891)		(1,772)		(1,482)		(1,165)		(2,647)
Interest expense - amortization of deferred finance costs		(623)		(60)		(683)		(816)		(128)		(944)
Loss before taxes		(4,615)		(1,720)		(6,335)		(11,169)		(2,550)		(13,719)
Tax expense		(99)		—		(99)		(134)		—		(134)
Net loss attributable to common stockholders	$	(4,714)	$	(1,720)	$	(6,434)	$	(11,303)	$	(2,550)	$	(13,853)
Other comprehensive loss:
Unrealized gain on pension liability		118		—		118		237		—		237
Comprehensive loss attributable to common stockholders	$	(4,596)	$	(1,720)	$	(6,316)	$	(11,066)	$	(2,550)	$	(13,616)
Loss per share - basic and diluted	$	(0.14)	$	(0.05)	$	(0.20)	$	(0.35)	$	(0.08)	$	(0.42)
Weighted average number of common shares - basic and diluted		32,694		32,694		32,694		32,643		32,643		32,643

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

FOR THE THREE MONTHS ENDED JUNE 30, 2021
											Accumulated
				Additional							Other
	Common Stock			Paid-In		Treasury Stock			Accumulated		Comprehensive
	Shares	Amount		Capital		Shares	Amount		Deficit		Loss		Total
As Previously Reported
Balance as of March 31, 2021	38,841	$	388	$	136,151	(6,398)	$	(57,166)	$	(16,092)	$	(2,040)	$	61,241
Net loss attributable to common stockholders	—		—		—	—		—		(4,714)		—		(4,714)
Settlement of stock awards	12		1		—	—		—		—		—		1
Unrealized gain on pension liability	—		—		—	—		—		—		118		118
Stock-based compensation expense	—		—		178	—		—		—		—		178
Balance as of June 30, 2021	38,853	$	389	$	136,329	(6,398)	$	(57,166)	$	(20,806)	$	(1,922)	$	56,824
Restatement Impact
Balance as of March 31, 2021	—	$	—	$	—	—	$	—	$	(6,718)	$	—	$	(6,718)
Net loss attributable to common stockholders	—		—		—	—		—		(1,720)		—		(1,720)
Settlement of stock awards	—		—		—	—		—		—		—		—
Unrealized gain on pension liability	—		—		—	—		—		—		—		—
Stock-based compensation expense	—		—		—	—		—		—		—		—
Balance as of June 30, 2021	—	$	—	$	—	—	$	—	$	(8,438)	$	—	$	(8,438)
As Restated
Balance as of March 31, 2021	38,841	$	388	$	136,151	(6,398)	$	(57,166)	$	(22,810)	$	(2,040)	$	54,523
Net loss attributable to common stockholders	—		—		—	—		—		(6,434)		—		(6,434)
Settlement of stock awards	12		1		—	—		—		—		—		1
Unrealized gain on pension liability	—		—		—	—		—		—		118		118
Stock-based compensation expense	—		—		178	—		—		—		—		178
Balance as of June 30, 2021	38,853	$	389	$	136,329	(6,398)	$	(57,166)	$	(29,244)	$	(1,922)	$	48,386

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

FOR THE SIX MONTHS ENDED JUNE 30, 2021
											Accumulated
				Additional							Other
	Common Stock			Paid-In		Treasury Stock			Accumulated		Comprehensive
	Shares	Amount		Capital		Shares	Amount		Deficit		Loss		Total
As Previously Reported
Balance as of December 31, 2020	38,345	$	383	$	135,978	(6,173)	$	(56,791)	$	(9,503)	$	(2,159)	$	67,908
Net loss attributable to common stockholders	—		—		—	—		—		(11,303)		—		(11,303)
Settlement of stock awards	508		6		—	(225)		(375)		—		—		(369)
Unrealized gain on pension liability	—		—		—	—		—		—		237		237
Stock-based compensation expense	—		—		351	—		—		—		—		351
Balance as of June 30, 2021	38,853	$	389	$	136,329	(6,398)	$	(57,166)	$	(20,806)	$	(1,922)	$	56,824
Restatement Impact
Balance as of December 31, 2020	—	$	—	$	—	—	$	—	$	(5,888)	$	—	$	(5,888)
Net loss attributable to common stockholders	—		—		—	—		—		(2,550)		—		(2,550)
Settlement of stock awards	—		—		—	—		—		—		—		—
Unrealized gain on pension liability	—		—		—	—		—		—		—		—
Stock-based compensation expense	—		—		—	—		—		—		—		—
Balance as of June 30, 2021	—	$	—	$	—	—	$	—	$	(8,438)	$	—	$	(8,438)
As Restated
Balance as of December 31, 2020	38,345	$	383	$	135,978	(6,173)	$	(56,791)	$	(15,391)	$	(2,159)	$	62,020
Net loss attributable to common stockholders	—		—		—	—		—		(13,853)		—		(13,853)
Settlement of stock awards	508		6		—	(225)		(375)		—		—		(369)
Unrealized gain on pension liability	—		—		—	—		—		—		237		237
Stock-based compensation expense	—		—		351	—		—		—		—		351
Balance as of June 30, 2021	38,853	$	389	$	136,329	(6,398)	$	(57,166)	$	(29,244)	$	(1,922)	$	48,386

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Six Months Ended June 30, 2021
	As Previously		Restatement
	Reported		Impact			As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss attributable to common stockholders	$	(11,303)	$	(2,550)	$	(13,853)
Adjustments to reconcile net loss attributable to common stockholders to net cash used in operating activities:
Depreciation and amortization and amortization of deferred finance costs		2,246		698		2,944
Stock-based compensation expense		265		—		265
Deferred rents receivable		(16)		—		(16)
Other non-cash adjustments - pension expense		238		—		238
Unrealized loss on warrants		1,910		—		1,910
Equity in net loss from unconsolidated joint ventures		636		—		636
Distributions from unconsolidated joint ventures		425		—		425
Loan forgiveness		(243)		—		(243)
(Increase) decrease in operating assets:
Residential condominium units for sale		—		(19,479)		(19,479)
Receivables		820		—		820
Prepaid expenses and other assets, net		(97)		—		(97)
Increase in operating liabilities:
Accounts payable and accrued expenses		3,559		—		3,559
Net cash used in operating activities		(1,560)		(21,331)		(22,891)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to real estate		(21,387)		21,331		(56)
Net cash used in investing activities		(21,387)		21,331		(56)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loans and corporate credit facility		74,486		—		74,486
Proceeds from secured line of credit		1,200		—		1,200
Payment of finance costs		(2,231)		—		(2,231)
Repayment of loans		(56,413)		—		(56,413)
Settlement of stock awards		(369)		—		(369)
Net cash provided by financing activities		16,673		—		16,673
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(6,274)		—		(6,274)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD		16,069		—		16,069
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	9,795	$	—	$	9,795
CASH AND CASH EQUIVALENTS, BEGINNING PERIOD	$	6,515	$	—	$	6,515
RESTRICTED CASH, BEGINNING OF PERIOD		9,554		—		9,554
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD	$	16,069	$	—	$	16,069
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	2,169	$	—	$	2,169
RESTRICTED CASH, END OF PERIOD		7,626		—		7,626
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	9,795	$	—	$	9,795
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for: Interest	$	8,564	$	—	$	8,564
Cash paid during the period for: Taxes	$	49	$	—	$	49
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued development costs included in accounts payable and accrued expenses	$	8,321	$	(8,321)	$	—
Capitalized amortization of deferred financing costs and warrants	$	1,629	$	(128)	$	1,501
Capitalized stock-based compensation expense	$	85	$	(15)	$	70

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and share amounts)

	As of September 30, 2021
	As Previously		Restatement
	Reported		Impact		As Restated
ASSETS
Real estate, net	$	307,112	$	(239,116)	$	67,996
Residential condominium units for sale		—		228,102		228,102
Cash and cash equivalents		917		—		917
Restricted cash		11,732		—		11,732
Prepaid expenses and other assets, net		3,555		—		3,555
Investments in unconsolidated joint ventures		18,056		—		18,056
Receivables		79		—		79
Deferred rents receivable		110		—		110
Right-of-use asset		1,374		—		1,374
Intangible assets, net		8,617		—		8,617
Total assets	$	351,552	$	(11,014)	$	340,538
LIABILITIES
Loans payable, net	$	223,503	$	—	$	223,503
Corporate credit facility, net		32,597		—		32,597
Secured line of credit, net		11,950		—		11,950
Note payable		5,863		—		5,863
Accounts payable and accrued expenses		18,457		—		18,457
Lease liability		1,516		—		1,516
Warrant liability		1,411		—		1,411
Total liabilities		295,297		—		295,297
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value; 40,000,000 shares authorized; no shares issued and outstanding		—		—		—
Preferred stock, $0.01 par value; 2 shares authorized, no shares issued and outstanding at September 30, 2021		—		—		—
Special stock, $0.01 par value; 1 share authorized, issued and outstanding at September 30, 2021		—		—		—
Common stock, $0.01 par value; 79,999,997 shares authorized; 39,016,012 shares issued at September 30, 2021; 32,618,137 shares outstanding at September 30, 2021		390		—		390
Additional paid-in capital		136,672		—		136,672
Treasury stock (6,397,875 shares at September 30, 2021)		(57,166)		—		(57,166)
Accumulated other comprehensive loss		(1,803)		—		(1,803)
Accumulated deficit		(21,838)		(11,014)		(32,852)
Total stockholders' equity		56,255		(11,014)		45,241
Total liabilities and stockholders' equity	$	351,552	$	(11,014)	$	340,538

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(In thousands, except share amounts)

	For the Three Months Ended September 30, 2021						For the Nine Months Ended September 30, 2021
	As Previously		Restatement				As Previously		Restatement
	Reported		Impact		As Restated		Reported		Impact		As Restated
Revenues
Rental revenues	$	803	$	164	$	967	$	1,527	$	464	$	1,991
Other income		30		—		30		332		—		332
Sale of residential condominium units		1,450		(22)		1,428		1,450		(22)		1,428
Total revenues		2,283		142		2,425		3,309		442		3,751
Operating Expenses
Property operating expenses		705		192		897		3,823		869		4,692
Real estate taxes		17		254		271		57		372		429
General and administrative		1,217		223		1,440		3,655		415		4,070
Pension related costs		158		—		158		483		—		483
Cost of sale - residential condominium units		1,417		(22)		1,395		1,417		(22)		1,395
Depreciation and amortization		716		285		1,001		2,146		855		3,001
Total operating expenses		4,230		932		5,162		11,581		2,489		14,070
Operating loss		(1,947)		(790)		(2,737)		(8,272)		(2,047)		(10,319)
Equity in net loss from unconsolidated joint ventures		—		—		—		(636)		—		(636)
Unrealized gain (loss) on warrants		1,718		—		1,718		(192)		—		(192)
Interest expense, net		(690)		(1,677)		(2,367)		(2,172)		(2,842)		(5,014)
Interest expense - amortization of deferred finance costs		(160)		(109)		(269)		(976)		(237)		(1,213)
Loss before taxes		(1,079)		(2,576)		(3,655)		(12,248)		(5,126)		(17,374)
Tax benefit (expense)		47		—		47		(87)		—		(87)
Net loss attributable to common stockholders	$	(1,032)	$	(2,576)	$	(3,608)	$	(12,335)	$	(5,126)	$	(17,461)
Other comprehensive loss:
Unrealized gain on pension liability		119		—		119		356		—		356
Comprehensive loss attributable to common stockholders	$	(913)	$	(2,576)	$	(3,489)	$	(11,979)	$	(5,126)	$	(17,105)
Loss per share - basic and diluted	$	(0.03)	$	(0.08)	$	(0.11)	$	(0.38)	$	(0.16)	$	(0.53)
Weighted average number of common shares - basic and diluted		32,756		32,756		32,756		32,681		32,681		32,681

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021
												Accumulated
				Additional							Other
	Common Stock			Paid-In		Treasury Stock			Accumulated		Comprehensive
	Shares	Amount		Capital		Shares	Amount		Deficit		Loss		Total
As Previously Reported
Balance as of June 30, 2021	38,853	$	389	$	136,329	(6,398)	$	(57,166)	$	(20,806)	$	(1,922)	$	56,824
Net loss attributable to common stockholders	—		—		—	—		—		(1,032)		—		(1,032)
Settlement of stock awards	13		—		—	—		—		—		—		—
Unrealized gain on pension liability	—		—		—	—		—		—		119		119
Sale of common stock	150		1		165	—		—		—		—		166
Stock-based compensation expense	—		—		178	—		—		—		—		178
Balance as of September 30, 2021	39,016	$	390	$	136,672	(6,398)	$	(57,166)	$	(21,838)	$	(1,803)	$	56,255
Restatement Impact
Balance as of June 30, 2021	—	$	—	$	—	—	$	—	$	(8,438)	$	—	$	(8,438)
Net loss attributable to common stockholders	—		—		—	—		—		(2,576)		—		(2,576)
Settlement of stock awards	—		—		—	—		—		—		—		—
Unrealized gain on pension liability	—		—		—	—		—		—		—		—
Sale of common stock	—		—		—	—		—		—		—		—
Stock-based compensation expense	—		—		—	—		—		—		—		—
Balance as of September 30, 2021	—	$	—	$	—	—	$	—	$	(11,014)	$	—	$	(11,014)
As Restated
Balance as of June 30, 2021	38,853	$	389	$	136,329	(6,398)	$	(57,166)	$	(29,244)	$	(1,922)	$	48,386
Net loss attributable to common stockholders	—		—		—	—		—		(3,608)		—		(3,608)
Settlement of stock awards	13		—		—	—		—		—		—		—
Unrealized gain on pension liability	—		—		—	—		—		—		119		119
Sale of common stock	150		1		165	—		—		—		—		166
Stock-based compensation expense	—		—		178	—		—		—		—		178
Balance as of September 30, 2021	39,016	$	390	$	136,672	(6,398)	$	(57,166)	$	(32,852)	$	(1,803)	$	45,241

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021
											Accumulated
				Additional							Other
	Common Stock			Paid-In		Treasury Stock			Accumulated		Comprehensive
	Shares	Amount		Capital		Shares	Amount		Deficit		Loss		Total
As Previously Reported
Balance as of December 31, 2020	38,345	$	383	$	135,978	(6,173)	$	(56,791)	$	(9,503)	$	(2,159)	$	67,908
Net loss attributable to common stockholders	—		—		—	—		—		(12,335)		—		(12,335)
Settlement of stock awards	521		5		—	(225)		(375)		—		—		(370)
Unrealized gain on pension liability	—		—		—	—		—		—		356		356
Sale of common stock	150		2		165	—		—		—		—		167
Stock-based compensation expense	—		—		529	—		—		—		—		529
Balance as of September 30, 2021	39,016	$	390	$	136,672	(6,398)	$	(57,166)	$	(21,838)	$	(1,803)	$	56,255
Restatement Impact
Balance as of December 31, 2020	—	$	—	$	—	—	$	—	$	(5,888)	$	—	$	(5,888)
Net loss attributable to common stockholders	—		—		—	—		—		(5,126)		—		(5,126)
Settlement of stock awards	—		—		—	—		—		—		—		—
Unrealized gain on pension liability	—		—		—	—		—		—		—		—
Sale of common stock	—		—		—	—		—		—		—		—
Stock-based compensation expense	—		—		—	—		—		—		—		—
Balance as of September 30, 2021	—	$	—	$	—	—	$	—	$	(11,014)	$	—	$	(11,014)
As Restated
Balance as of December 31, 2020	38,345	$	383	$	135,978	(6,173)	$	(56,791)	$	(15,391)	$	(2,159)	$	62,020
Net loss attributable to common stockholders	—		—		—	—		—		(17,461)		—		(17,461)
Settlement of stock awards	521		5		—	(225)		(375)		—		—		(370)
Unrealized gain on pension liability	—		—		—	—		—		—		356		356
Sale of common stock	150		2		165	—		—		—		—		167
Stock-based compensation expense	—		—		529	—		—		—		—		529
Balance as of September 30, 2021	39,016	$	390	$	136,672	(6,398)	$	(57,166)	$	(32,852)	$	(1,803)	$	45,241

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Nine Months Ended September 30, 2021
	As Previously		Restatement
	Reported		Impact		As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss attributable to common stockholders	$	(12,335)	$	(5,126)	$	(17,461)
Adjustments to reconcile net loss attributable to common stockholders to net cash used in operating activities:
Depreciation and amortization and amortization of deferred finance costs		3,122		1,092		4,214
Stock-based compensation expense		399		—		399
Deferred rents receivable		(20)		—		(20)
Other non-cash adjustments - pension expense		356		—		356
Unrealized loss on warrants		192		—		192
Equity in net loss from unconsolidated joint ventures		636		—		636
Distributions from unconsolidated joint ventures		686		—		686
Loan forgiveness		(243)		—		(243)
(Increase) decrease in operating assets:
Residential condominium units for sale		(33)		(25,338)		(25,371)
Receivables		887		—		887
Prepaid expenses and other assets, net		(846)		—		(846)
Increase in operating liabilities:
Accounts payable and accrued expenses		5,775		—		5,775
Net cash used in operating activities		(1,424)		(29,372)		(30,796)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to real estate		(30,784)		30,700		(84)
Net proceeds from the sale of residential condominium units		1,328		(1,328)		—
Net cash used in investing activities		(29,456)		29,372		(84)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loans and corporate credit facility		82,318		—		82,318
Proceeds from secured line of credit		4,200		—		4,200
Payment of finance costs		(2,442)		—		(2,442)
Repayment of loans		(56,413)		—		(56,413)
Settlement of stock awards		(370)		—		(370)
Sale of common stock, net		167		—		167
Net cash provided by financing activities		27,460		—		27,460
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(3,420)		—		(3,420)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD		16,069		—		16,069
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	12,649	$	—	$	12,649
CASH AND CASH EQUIVALENTS, BEGINNING PERIOD	$	6,515	$	—	$	6,515
RESTRICTED CASH, BEGINNING OF PERIOD		9,554		—		9,554
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD	$	16,069	$	—	$	16,069
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	917	$	—	$	917
RESTRICTED CASH, END OF PERIOD		11,732		—		11,732
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	12,649	$	—	$	12,649
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for: Interest	$	13,329	$	—	$	13,329
Cash paid during the period for: Taxes	$	189	$	—	$	189
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued development costs included in accounts payable and accrued expenses	$	7,101	$	(7,101)	$	—
Capitalized amortization of deferred financing costs and warrants	$	2,406	$	(237)	$	2,169
Capitalized stock-based compensation expense	$	130	$	(33)	$	97