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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

6 Months Ended

Jun. 30, 2012

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

NOTE 14. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

Since November 2001, the Partnership has invested in nine limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three partnerships investing in commercial property. The Partnership has between a 40%-50% ownership interests in each investment. The other investors are Harold Brown, the President of the Management Company and five other employees of the Management Company. Harold Brown’s ownership interest is between 43.2% and 57%, with the balance owned by the others. A description of each investment is as follows:

On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, referred to as Dexter Park, is a 409 unit residential complex. The purchase price was $129,500,000. The total mortgage is $89,914,000 with an interest rate of 5.57% and it matures in 2019. The mortgage calls for interest only payments for the first two years of the loan and amortized over 30 years thereafter. The balance of this mortgage is approximately $89,167,000 at June 30, 2012. In order to fund this investment, the Partnership used approximately $8,757,000 of its cash reserves and borrowed approximately $7,168,000 with an interest rate of 6% from HBC Holdings, LLC, an entity owned by Harold Brown and his affiliates (“HBC”). The term of the loan is four years with a provision requiring payment in whole or in part upon demand by HBC with six months notice. On August 17, 2010, HBC gave six months written notice to the Partnership requesting a principal pay down of $2,500,000. During the fourth quarter of 2010, the Partnership paid HBC $2,500,000 as requested. During 2011, the Partnership elected to make principal payments of $1,000,000 on August 1, 2011, $1,000,000 on October 1, 2011, and an additional $1,000,000 on December 15, 2011 reducing the loan balance to $1,668,600 at December 31, 2011. In February 2012, the Partnership elected to make an additional principal payment of $750,000 to HBC Holdings and the balance of $918,600 was paid in April 2012. The interest paid during the six months ended June 30, 2012 and 2011 was approximately $18,960 and $141,000, respectively. A majority of the apartments were leased at the time of the acquisition. As a result, the Partnership amortized the intangible assets associated with the “in place” leases over a 12 month period which began in November 2009. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On October 3, 2005, the Partnership invested $2,500,000 for a 50% ownership interest in a 168-unit apartment complex in Quincy, Massachusetts. The purchase price was $30,875,000. The Partnership plans to sell the majority of units as condominium and retain 48 units for long-term investment. Gains from the sales of units were taxed at ordinary income rates. In February 2007, the Partnership refinanced the 48 units which will be retained with a new mortgage in the amount of $4,750,000 with an interest rate of 5.57%, interest only for five years. This investment is referred to as Hamilton Bay Apartments, LLC. The loan will be amortized over 30 years thereafter and matures in March 2017. In April 2008, the Partnership refinanced an additional 20 units and obtained a new mortgage in the amount of $2,368,000 with interest at 5.75%, interest only, which matures in 2013. As of August 1, 2012, 105 units have been sold, the proceeds of which went to pay down the mortgage on the property. The balance on the new mortgage is approximately $1,668,000 at June 30, 2012. This investment is referred to as Hamilton Bay, LLC.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 49 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Partnership plans to operate the building and initiate development of the parking lot. In June 2007, the Partnership separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Partnership restructured the mortgages on both parcels at Essex 81 and transferred the residential apartments to Hamilton Essex 81, LLC. The mortgage on Hamilton Essex 81, LLC is $8,406,631 with interest only at 5.79% due in August 2016. The mortgage on Essex Development, LLC, or the parking lot is $2,118,990 with a variable interest rate of 2.25% over the daily Libor rate (0.25% at June 30, 2012). This loan was extended to August 2013 with the same conditions except for the addition of fixed principal payments in the amount of $4,301 per month. The cost associated with the extension was approximately $6, 000. Harold Brown has issued a personal guaranty up to $1,000,000 of this mortgage. In the event that he is obligated to make payments to the lender as a result of this guaranty, the Partnership and other investors have, in turn, agreed to indemnify him for their proportionate share of any such payments. The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC.

On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000. The Partnership sold 127 of the units as condominiums and retained 49 units for long-term investment. The Partnership obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Partnership. The interest on the new loan is 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. This investment is referred to as Hamilton 1025, LLC.

In September 2004, the Partnership invested approximately $5,075,000 for a 50% ownership interest in a 42-unit apartment complex located in Lexington, Massachusetts. The purchase price was $10,100,000. In October 2004, the Partnership obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Partnership obtained a new 10-year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan is 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. At June 30, 2012, the balance of this mortgage is approximately $5,466,000. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. As of May 2008, the Partnership sold 137 units as condominiums. Gains from these sales were taxed as ordinary income. The majority of the sales proceeds were applied to reduce the mortgage with the final payment made during the second quarter of 2007. With the sale of the units and the payments of the liabilities, the assets were combined with Hamilton on Main Apartments, LLC. An entity partially owned by the majority shareholder of the General Partner and the President of the management company, 31% and 5%, respectively, was the sales agent and received a variable commission on each sale of 3% to 5%. Hamilton on Main, LLC is known as Hamilton Place.

In 2005, Hamilton on Main Apartments, LLC obtained a ten year mortgage on the three buildings to be retained. The mortgage is $16,825,000, with interest only of 5.18% for three years and amortizing on a 30 year schedule for the remaining seven years when the balance is due. The net proceeds after funding escrow accounts and closing costs on the mortgage were approximately $16,700,000, which were used to reduce the existing mortgage. Hamilton on Main LLC paid a fee of approximately $400,000 in connection with this early extinguishment of debt. At June 30, 2012, the remaining balance on the mortgage is approximately $15,749,000.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. This property has a 12-year mortgage, with a remaining balance at June 30, 2012 of approximately $6,936,000 at 6.9% which is amortized on a 30-year schedule, with a final payment of approximately $6,000,000 in 2014. This investment is referred to as 345 Franklin, LLC.

As required by the lender, the Treasurer of the General Partner has provided a limited repayment guaranty equal to fifty percent (50%) of the outstanding balance for the loan on the for sale units at Hamilton Bay and a limited guaranty of $1,000,000 for the loan on Hamilton Essex Development. In the event that he is obligated to make payments to the lenders as a result of these guaranties, the Partnership and other investors have, in turn, agreed to indemnify him for their proportionate share of any such payments.

Summary financial information as of June 30, 2012

	Hamilton Essex 81	Hamilton Essex Development	345 Franklin	Hamilton 1025	Hamilton Bay Sales	Hamilton Bay Apts	Hamilton Minuteman	Hamilton on Main Apts	Dexter Park	Total

ASSETS
Rental Properties	9,261,771	2,611,819	8,049,593	5,744,197	1,882,240	7,118,237	7,152,206	21,534,347	110,257,477	173,611,888
Cash & Cash Equivalents	58,404	24,262	26,170	296	24,634	17,487	18,057	51,045	577,044	797,399
Rent Receivable	70,337	—	9,048	12,082	2,563	5,692	4,380	10,138	132,465	246,705
Real Estate Tax Escrow	49,442	—	21,015	69,257	—	93,063	42,103	107,470	483,938	866,288
Prepaid Expenses & Other Assets	85,426	1,110	91,415	97,825	161,820	104,087	76,573	273,435	1,306,813	2,198,503
Financing & Leasing Fees	65,493	1,747	12,247	22,159	4,037	29,424	17,934	18,012	429,336	600,388
Total Assets	9,590,873	2,638,938	8,209,487	5,945,816	2,075,295	7,367,990	7,311,253	21,994,446	113,187,073	178,321,171
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	8,406,631	2,118,990	6,936,102	4,964,768	1,668,000	4,730,815	5,466,352	15,748,668	89,166,547	139,206,873
Accounts Payable & Accrued Expense	61,165	5,811	118,416	49,520	18,661	54,146	85,621	211,249	884,807	1,489,395
Advance Rental Pmts & Security Dep	187,355	—	147,570	85,841	24,499	87,189	68,827	262,993	1,919,814	2,784,087
Total Liabilities	8,655,151	2,124,801	7,202,087	5,100,129	1,711,161	4,872,149	5,620,800	16,222,911	91,971,168	143,480,356
Partners’ Capital	935,722	514,137	1,007,400	845,687	364,134	2,495,641	1,690,453	5,771,535	21,215,906	34,840,816
Total Liabilities & Capital	9,590,873	2,638,938	8,209,487	5,945,816	2,075,295	7,367,990	7,311,253	21,994,446	113,187,073	178,321,171
Partners’ Capital — NERA 50%	467,861	257,068	503,700	422,844	182,067	1,247,920	845,227	2,885,768
NERA 40%									8,486,362	8,486,362
										15,298,817
Total units/ condominiums
Apartments	48	—	40	175	120	48	42	148	409	1,030
Commercial	1	1	—	1	—	—	—	—	—	3
Total	49	1	40	176	120	48	42	148	409	1,033
Units to be retained	49	1	40	49	—	48	42	148	409	786
Units to be sold	—	—	—	127	120	—	—	—	—	247
Units sold through August 1, 2012	—	—	—	127	105	—	—	—	—	232
Unsold units	—	—	—	—	15	—	—	—	—	15
Unsold units with deposits for future sale as of August 1, 2012	—	—	—	—	—	—	—	—	—	—

Summary financial information for the six months ended June 30, 2012

	Hamilton Essex 81		Hamilton Essex Development		345 Franklin		Hamilton 1025		Hamilton Bay Sales		Hamilton Bay Apts		Hamilton Minuteman		Hamilton on Main Apts		Dexter Park		Total
Revenues
Rental Income	626,002		144,092		578,703		421,727		111,192		436,161		398,676		1,297,371		6,062,838		10,076,761
Laundry and Sundry Income	7,073		—		1,188		—		—		—		491		9,980		43,855		62,587
	633,075		144,092		579,891		421,727		111,192		436,161		399,167		1,307,350		6,106,693		10,139,348
Expenses
Administrative	7,606		1,114		15,366		2,480		4,103		23,711		2,931		26,098		109,434		192,842
Depreciation and Amortization	206,865		6,485		222,140		126,593		39,472		149,087		158,546		476,667		2,870,999		4,256,855
Management Fees	27,026		5,764		24,116		16,885		4,587		16,992		16,016		52,207		129,568		293,161
Operating	53,132		—		29,481		635		927		905		37,721		178,324		547,102		848,227
Renting	2,090		—		141		2,328		1,450		3,271		1,993		6,580		41,798		59,652
Repairs and Maintenance	54,878		4,525		44,319		146,192		32,177		133,219		29,497		197,892		429,952		1,072,650
Taxes and Insurance	100,878		25,186		50,561		73,592		23,560		81,677		50,868		168,309		744,643		1,319,275
	452,475		43,074		386,125		368,706		106,276		408,862		297,573		1,106,077		4,873,495		8,042,662
Income Before Other Income	180,601		101,018		193,766		53,021		4,916		27,299		101,594		201,274		1,233,197		2,096,686
Other Income (Loss)
Interest Expense	(248,551	)	(30,327	)	(245,913	)	(143,846	)	(48,871	)	(135,267	)	(158,370	)	(418,707	)	(2,540,630	)	(3,970,481	)
Interest Income	—		—		24		41		114		—		—		—		—		178
Interest Income from Note	—		—		—		—		3,442		—		—		—		—		3,442
	(248,551	)	(30,327	)	(245,889	)	(143,805	)	(45,315	)	(135,267	)	(158,370	)	(418,707	)	(2,540,630	)	(3,966,860	)
Net Income (loss)	(67,950	)	70,691		(52,123	)	(90,784	)	(40,398	)	(107,968	)	(56,776	)	(217,433	)	(1,307,433	)	(1,870,174	)
Net Income (loss) - NERA 50%	(33,975	)	35,345		(26,061	)	(45,392	)	(20,199	)	(53,984	)	(28,388	)	(108,717	)			(281,371	)
NERA 40%																	(522,973	)	(522,973	)
																			(804,344	)

Summary financial information for the three months ended June 30, 2012

	Hamilton Essex 81		Hamilton Essex Development		345 Franklin		Hamilton 1025		Hamilton Bay Sales		Hamilton Bay Apts		Hamilton Minuteman		Hamilton on Main Apts		Dexter Park		Total
Revenues
Rental Income	333,509		72,046		287,052		211,699		59,714		216,498		201,973		649,487		3,051,260		5,083,238
Laundry and Sundry Income	3,540		—		600		—		—		—		83		4,617		21,355		30,195
	337,049		72,046		287,652		211,699		59,714		216,498		202,056		654,104		3,072,615		5,113,433
Expenses
Administrative	4,330		547		8,864		2,189		1,895		15,351		1,982		12,303		66,572		114,031
Depreciation and Amortization	103,742		3,243		112,159		63,477		19,736		74,723		79,613		240,010		1,438,955		2,135,656
Management Fees	14,208		2,882		12,115		8,333		2,537		8,599		7,978		26,698		66,306		149,656
Operating	22,810		—		14,338		570		256		217		13,014		73,937		243,755		368,896
Renting	150		—		—		659		535		2,377		1,083		4,556		10,807		20,169
Repairs and Maintenance	32,326		4,150		28,474		76,398		15,410		68,837		17,521		103,533		285,183		631,833
Taxes and Insurance	50,693		12,844		25,296		36,671		11,918		40,902		25,458		83,186		364,513		651,482
	228,259		23,666		201,245		188,296		52,287		211,006		146,648		544,223		2,476,092		4,071,723
Income Before Other Income	108,790		48,380		86,406		23,403		7,426		5,492		55,408		109,881		596,522		1,041,709

Other Income (Loss)
Interest expense	(124,068	)	(15,034	)	(121,314	)	(71,826	)	(24,445	)	(67,577	)	(79,013	)	(208,988	)	(1,267,892	)	(1,980,156	)
Interest income	—		—		12		21		53		—		—		—		—		86
Interest income from Note	—		—		—		—		1,635		—		—		—		—		1,635
	(124,068	)	(15,034	)	(121,302	)	(71,805	)	(22,757	)	(67,577	)	(79,013	)	(208,988	)	(1,267,892	)	(1,978,435	)

Net Income (Loss)	(15,278	)	33,346		(34,895	)	(48,402	)	(15,331	)	(62,085	)	(23,605	)	(99,107	)	(671,370	)	(936,726	)

Net Loss - NERA 50%	(7,639	)	16,673		(17,448	)	(24,201	)	(7,665	)	(31,043	)	(11,802	)	(49,553	)			(132,678	)
NERA 40%																	(268,548	)	(268,548	)
																			(401,226	)

Future annual mortgage maturities at June 30, 2012 are as follows:

	Hamilton Essex 81	Hamilton Essex Development	345 Franklin	Hamilton 1025	Hamilton Bay Sales	Hamilton Bay	Hamilton Minuteman	Hamilton on Main Apts	Dexter Park
Period End	March 2005	March 2005	November 2001	March 2005	October 2005	October 2005	August 2004	August 2004	October 2009	Total
June 30, 2013	132,241	2,118,990	174,853	63,301	1,668,000	65,832	69,329	285,577	1,283,176	5,861,300
June 30, 2014	129,342		6,761,248	67,037		68,027	73,421	301,117	1,311,782	8,711,975
June 30, 2015	137,033			70,994		71,915	77,755	15,161,974	1,386,742	16,906,414
June 30, 2016	8,008,015			74,427		76,024	81,510		1,465,987	9,705,962
June 30, 2017				4,689,009		4,449,016	5,164,336		1,549,759	15,852,121
Thereafter									82,169,101	82,169,101
	8,406,631	2,118,990	6,936,102	4,964,766	1,668,000	4,730,815	5,466,352	15,748,668	89,166,547	139,206,873

Summary financial information as of June 30, 2011

	Hamilton Essex 81	Hamilton Essex Development	345 Franklin	Hamilton 1025	Hamilton Bay Sales	Hamilton Bay Apts	Hamilton Minuteman	Hamilton on Main Apts	Dexter Park	Total

ASSETS
Rental Properties	9,643,573	2,596,416	8,437,172	5,966,525	1,968,516	7,425,418	7,464,615	22,387,877	115,685,885	181,575,997
Cash & Cash Equivalents	27,239	41,041	58,927	473	33,372	10,741	39,368	17,165	810,444	1,038,770
Rent Receivable	19,130	3,050	8,086	11,165	539	5,972	5,591	12,813	249,184	315,528
Real Estate Tax Escrow	88,832		18,847	56,360	—	83,396	43,720	99,613	604,893	995,661
Prepaid Expenses & Other Assets	88,029	1,085	80,137	83,316	199,773	89,568	77,126	494,172	1,179,042	2,292,248
Financing & Leasing Fees	84,509	1,048	20,413	27,185	9,102	35,786	21,903	24,873	488,737	713,555
Total Assets	9,951,313	2,642,641	8,623,582	6,145,023	2,211,300	7,650,881	7,652,322	23,036,512	119,018,186	186,931,759
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	8,513,163	2,162,000	7,099,329	5,000,000	1,668,000	4,750,000	5,500,000	16,017,627	89,914,000	140,624,120
Accounts Payable & Accrued Expense	67,948	5,495	50,219	48,582	16,738	10,972	80,605	225,151	778,220	1,283,930
Advance Rental Pmts & Security Dep	183,278		128,680	69,315	20,231	84,842	73,317	258,529	1,819,871	2,638,062
Total Liabilities	8,764,390	2,167,495	7,278,229	5,117,897	1,704,969	4,845,814	5,653,922	16,501,306	92,512,091	144,546,112
Partners’ Capital	1,186,923	475,146	1,345,353	1,027,126	506,331	2,805,067	1,998,400	6,535,206	26,506,095	42,385,648
Total Liabilities & Capital	9,951,313	2,642,641	8,623,582	6,145,023	2,211,300	7,650,881	7,652,322	23,036,512	119,018,186	186,931,759
Partners’ Capital — NERA 50%	593,462	237,573	672,677	513,563	253,166	1,402,534	999,200	3,267,603		7,939,776
NERA 40%									10,602,438	10,602,438
										18,542,214

Total units/ condominiums
Apartments	48	—	40	175	120	48	42	148	409	1,030
Commercial	1	1	—	1	—	—	—	—	—	3
Total	49	1	40	176	120	48	42	148	409	1,033
Units to be retained	49	1	40	49	—	48	42	148	409	786
Units to be sold	—	—	—	127	120	—	—	—	—	247
Units sold through July 25, 2011	—	—	—	127	105	—	—	—	0	232
Unsold units	—	—	—	—	15	—	—	—	—	15
Unsold units with deposits for future sale as of July 25 , 2011	—	—	—	—	0	—	—	—	—	—

Summary financial information for the six months ended June 30, 2011

	Hamilton Essex 81		Hamilton Essex Development		345 Franklin		Hamilton 1025		Hamilton Bay Sales		Hamilton Bay Apts		Hamilton Minuteman		Hamilton on Main Apts		Dexter Park		Total
Revenues
Rental Income	566,447		141,050		560,462		401,308		119,139		426,205		393,025		1,230,819		5,739,961		9,578,416
Laundry and Sundry Income	7,202		—		1,228		—								10,788		49,813		69,031
	573,649		141,050		561,690		401,308		119,139		426,205		393,025		1,241,608		5,789,775		9,647,447
Expenses
Administrative	11,270		829		8,981		4,878		1,801		7,584		8,045		15,685		66,499		125,571
Depreciation and Amortization	211,570		3,127		221,293		129,404		44,832		157,214		162,659		481,690		2,847,426		4,259,214
Management Fees	25,101		5,520		22,640		15,907		4,903		16,752		15,904		50,522		123,272		280,521
Operating	65,071				36,031		868		95		219		20,571		210,067		494,144		827,066
Renting	7,180				10,407		7,128		1,075		4,589		1,777		7,051		98,387		137,595
Repairs and Maintenance	55,879		3,050		36,138		149,527		37,908		155,110		44,073		167,241		444,075		1,093,000
Taxes and Insurance	94,238		23,818		47,268		73,559		22,779		78,513		43,552		160,236		606,241		1,150,205
	470,308		36,344		382,758		381,271		113,394		419,981		296,581		1,092,492		4,680,044		7,873,173
Income Before Other Income	103,341		104,706		178,932		20,036		5,744		6,224		96,444		149,116		1,109,730		1,774,274

Other Income (Loss)
Interest Income					25		45		269								3,219		3,558
Interest Expense	(250,249	)	(30,688	)	(248,522	)	(143,397	)	(48,582	)	(134,521	)	(157,575	)	(422,124	)	(2,536,073	)	(3,971,730	)
Interest income from Note									4,781										4,781
	(250,249	)	(30,688	)	(248,497	)	(143,352	)	(43,532	)	(134,520	)	(157,575	)	(422,124	)	(2,532,854	)	(3,963,391	)

Net Income (Loss)	(146,907	)	74,018		(69,565	)	(123,316	)	(37,788	)	(128,296	)	(61,030	)	(273,008	)	(1,423,124	)	(2,189,117	)

Net Loss - NERA 50%	(73,454	)	37,009		(34,783	)	(61,658	)	(18,894	)	(64,148	)	(30,515	)	(136,504	)			(382,997	)
NERA 40%																	(569,250	)	(569,250	)
																			(952,246	)

Summary financial information for the three months ended June 30, 2011

	Hamilton Essex 81		Hamilton Essex Parking		345 Franklin		Hamilton 1025		Hamilton Bay Sales		Hamilton Bay Apts		Hamilton Minuteman		Hamilton on MainApts		Dexter Park		Total
Revenues
Rental Income	277,595		72,050		278,692		203,017		61,849		211,266		200,020		617,257		2,847,881		4,769,626
Laundry and Sundry Income	3,264				600										4,698		24,223		32,785
	280,859		72,050		279,292		203,017		61,849		211,266		200,020		621,955		2,872,104		4,802,410
Expenses
Administrative	6,472		448		4,608		2,837		893		4,512		1,522		4,979		34,143		60,413
Depreciation and Amortization	105,872		1,563		110,706		65,193		22,416		79,079		82,205		241,739		1,424,349		2,133,121
Management Fees	12,603		2,760		11,541		8,028		2,471		8,507		8,009		24,965		60,459		139,344
Operating	26,655				12,955		250		51		169		(1,904	)	85,909		210,837		334,922
Renting	2,080				4,407		3,669		1,075		3,663		524		3,833		43,661		62,913
Repairs and Maintenance	29,217		3,050		22,350		72,274		23,078		91,589		23,074		95,414		279,864		639,909
Taxes and Insurance	47,052		11,910		23,609		36,963		11,414		39,411		21,718		79,355		319,801		591,233
	229,952		19,731		190,176		189,214		61,398		226,930		135,147		536,193		2,373,114		3,961,855
Income Before Other Income	50,907		52,319		89,115		13,803		451		(15,664	)	64,873		85,762		498,990		840,556

Other Income (Loss)
Interest Income					13		23		128										164
Interest Expense	(125,645	)	(15,242	)	(123,947	)	(72,124	)	(24,432	)	(67,642	)	(79,285	)	(211,960	)	(1,274,191	)	(1,994,467	)
Interest income from Note									2,310										2,310
	(125,645	)	(15,242	)	(123,934	)	(72,101	)	(21,994	)	(67,642	)	(79,285	)	(211,960	)	(1,274,191	)	(1,991,994	)

Net Income (Loss)	(74,738	)	37,077		(34,819	)	(58,298	)	(21,543	)	(83,306	)	(14,412	)	(126,198	)	(775,201	)	(1,151,438	)

Net Loss - NERA 50%	(37,369	)	18,538		(17,409	)	(29,149	)	(10,772	)	(41,653	)	(7,206	)	(63,099	)			(188,119	)
NERA 40%																	(310,080	)	(310,080	)
																			(498,199	)

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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