EX-99.1 5 ex_416540.htm EXHIBIT 99.1 ex_416540.htm

Exhibit 99.1

 

SB PARTNERS

(a New York limited partnership)

PRO FORMA BALANCE SHEET

As of June 30, 2022

(Unaudited)

 

   

As

    

Pro Forma

    

Pro Forma

  
   

originally

    

Adjustments

    

Balance

  
   

reported

    

(See Note 2)

    

Sheet

  

Assets:

                        

Investments -

                        

Real estate held for sale

   $ 3,856,778     $ (3,856,778 )   $ -  
                         

Investment in Sentinel Omaha, LLC net

     3,354,346       -       3,354,346  
      7,211,124       (3,856,778 )     3,354,346  

Other Assets -

                        

Cash and cash equivalents

     2,809,150       12,453,687       15,262,837  

Other assets

     1,471       -       1,471  

Other asset in discontinued operations

     48,424       (48,424 )     -  
                         

Total assets

   $ 10,070,169     $ 8,548,485     $ 18,618,654  
                         

Liabilities:

                        

Accounts payable

   $ 30,405     $ -     $ 30,405  

Other liabilities in discontinued operations

     709       (709 )     -  
                         

Total liabilities

     31,114       (709 )     30,405  
                         

Partners' Capital:

                        

Limited partner - 7,753 units

     10,056,196       8,548,091       18,604,287  

General partner - 1 unit

     (17,141 )     1,103       (16,038 )
                         

Total partners' capital

     10,039,055       8,549,194       18,588,249  
                         

Total liabilities and partners' capital

   $ 10,070,169     $ 8,548,485     $ 18,618,654  

 

See notes to pro forma consolidated financial statements

 

 
2

 

SB PARTNERS

(a New York limited partnership)

PRO FORMA STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2022

(Unaudited)

 

   

As

    

Pro Forma

    

Pro Forma

  
   

originally

    

Adjustments

    

Income

  
   

reported

    

(See Note 2)

    

Statement

  
                         

Equity in net (loss) of investment

   $ (32,223 )   $ -     $ (32,223 )
                         

Partnership income and expenses:

                        

Interest income

     13,331       -       13,331  

Partnership expenses

     (332,627 )     33,724       (298,903 )
                         

Net (loss) from continuing operations

     (351,519 )     33,724       (317,795 )
                         

Income from discontinued operation

     315,218       (315,218 )     -  
                         

Net loss

     (36,301 )     (281,494 )     (317,795 )
                         

Loss allocated to general partner

     (5 )     (36 )     (41 )
                         

Loss allocated to limited partners

   $ (36,296 )   $ (281,458 )   $ (317,754 )
                         

Earnings per unit of limited partnership interest (basic and diluted):

                        

Continuing operations

   $ (45.34 )   $ -     $ (45.34 )

Discontinued operation

   $ 40.66     $ (40.66 )   $ -  

Net Loss per unit of Limited Partnership Interest

   $ (4.68 )   $ (40.66 )   $ (45.34 )
                         

Weighted Average Number of Units of Limited Partnership Interest Outstanding

     7,753       7,753       7,753  

 

See notes to pro forma consolidated financial statements

 

 
3

 

SB PARTNERS

(a New York limited partnership)

PRO FORMA STATEMENT OF OPERATIONS

For the Year Ended December 31, 2021

(Unaudited)

 

   

As

    

Pro Forma

    

Pro Forma

  
   

originally

    

Adjustments

    

Income

  
   

reported

    

(See Note 2)

    

Statement

  

Revenues:

                        

Rental income

   $ 1,209,178     $ (1,209,178 )   $ -  

Interest on short-term investments and other

     12,385       -       12,385  
                         

Total revenues

     1,221,563       (1,209,178 )     12,385  
                         

Expenses:

                        

Real estate operating expenses

     328,407       (173,245 )     155,162  

Depreciation

     164,491       (164,491 )     -  

Real estate taxes

     146,833       (146,833 )     -  

Management fees

     996,741       (67,447 )     929,294  

Other

     145,845       -       145,845  
                         

Total expenses

     1,782,317       (552,016 )     1,230,301  
                         

Loss from operations

     (560,754 )     (657,162 )     (1,217,916 )

Equity in net income of investment

     19,251,430       -       19,251,430  

Decrease in reserve for value of investment

     11,923,033       -       11,923,033  
                         

Net income

     30,613,709       (657,162 )     29,956,547  
                         

Income allocated to general partner

     3,949       (85 )     3,864  

Income allocated to limited partners

   $ 30,609,760     $ (657,077 )   $ 29,952,683  
                         

Earnings per unit of limited partnership interest (basic and diluted):

                        

Net income per unit of Limited Partnership Interest

   $ 3,948.63     $ (84.76 )   $ 3,863.87  
                         

Weighted Average Number of Units of Limited Partnership Interest Outstanding

     7,753       7,753       7,753  

 

See notes to pro forma consolidated financial statements

 

 
4

 

SB PARTNERS

(a New York limited partnership)

 

NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

(1)

Accounting and Financial Reporting

 

The consolidated financial statements included herein are unaudited; however, the information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary to a fair presentation of the financial position and results of operations for the year presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Registrant believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the Registrant's latest annual report on Form 10-K, filed March 31, 2022 and Form 10-Q filed August 15, 2022.

 

(2)

Pro Forma Adjustments

 

The consolidated balance sheet as of the last filing date, June 30, 2022, has been restated to reflect the sale of Eagle IV as if the transaction had occurred on such date. Accordingly, the assets and liabilities of Eagle IV have been removed from the historical balance sheet to reflect the sale of the property. Assets removed included real estate held for sale of $3,856,778 and other assets in discontinued operation totaling $48,424. Liabilities removed include other liabilities in discontinued operation totaling $709. In addition, the balance of cash has been increased by $12,453,687 to reflect the net proceeds from the sale of Eagle IV retained.

 

The accompanying pro forma consolidated statement of operations for the six months ended June 30, 2022 has been adjusted to reflect the results of operations of the Registrant as if the sale of Eagle IV had been consummated at the beginning of the period.

 

The income from discontinuing operation of Eagle IV has been removed from the consolidated statement of operations for the six months ended June 30, 2022. In accordance with the rules and regulations regarding the filing of Form 8-K, no gain from the sale of the investment in real estate property is reflected in the pro forma statement of operations.

 

The accompanying pro forma consolidated statement of operations for the year ended December 31, 2021 has been adjusted to reflect the results of operations of the Registrant as if the sale of Eagle IV had been consummated at the beginning of the period.

 

The income and expenses of Eagle IV has been removed from the consolidated statement of operations for the year ended December 31, 2021. In accordance with the rules and regulations regarding the filing of Form 8-K, no gain from the sale of the investment in real estate property is reflected in the pro forma statement of operations.