4.	Estimated Liquidation and Operating Costs Net of Estimated Receipts

The liquidation basis of accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the plan of liquidation. The Company currently estimates that it will incur liquidation and operating costs net of estimated receipts during the liquidation period, excluding the net proceeds from the real estate sales. These amounts can vary significantly due to, among other things, land entitlement costs, the timing and estimates for executing and renewing leases, capital expenditures to maintain the real estate at its current estimated realizable value and estimates of tenant improvement costs, the timing of property sales and any direct/indirect costs incurred that are related to the sales (e.g., retention bonuses on the sale of the Cortlandt Manor and Flowerfield properties, costs to address buy side due diligence inclusive of administrative fees, legal fees and property costs to address items arising from such due diligence and

not

previously known), the timing and amounts associated with discharging known and contingent liabilities and the costs associated with the winding up of operations. These costs are estimated and are anticipated to be paid during the liquidation period.

The change in the liability for estimated costs in excess of estimated receipts during liquidation from

January 1, 2020

through

December 31, 2020

is as follows:

	January 1, 2020			Expenditures/ (Receipts)			Remeasurement of Assets and Liabilities			December 31, 2020
Assets:
Estimated rents and reimbursements	$	4,309,328		$	(2,432,540	)	$	3,049,860		$	4,926,648
Liabilities:
Property operating costs		(2,594,954	)		1,506,037			(1,972,487	)		(3,061,404	)
Capital expenditures		(474,133	)		13,495			-			(460,638	)
Land entitlement costs		(1,847,127	)		1,013,966			(657,538	)		(1,490,699	)*
Corporate expenditures		(6,196,551	)		2,139,978			(2,287,769	)		(6,344,342	)
Selling costs on real estate assets**		(3,497,200	)		-			439,203			(3,057,997	)
Retention bonus payments to directors, officers and employees**		(4,680,518	)		-			1,767,038			(2,913,480	)
Less prepaid expenses and other assets		603,679			245,293			-			848,972
Liability for estimated liquidation and operating costs net of estimated receipts	$	(14,377,476	)	$	2,486,229		$	338,307		$	(11,552,940	)

*The Company reached agreements with certain service vendors to defer payment of approximately

$321,000

of the

$1.5

million until the closing of the

first

property lot sale that is the subject of either the Flowerfield or Cortlandt Manor subdivision, respectively.

**The amounts reported are based on the provisions of the retention bonus plan and the reported amount of the real estate assets estimated net realizable value. Based on the estimated real estate value of the Cortlandt property, aggregate proceeds from the sale of the

two

Cortlandt lots would

not

exceed the adjusted floor under the retention bonus plan and therefore the above table only reflects the projected bonus from the sale of the Flowerfield property.

The change in the liability for estimated costs in excess of estimated receipts during liquidation from

January 1, 2019

through

December 31, 2019

is as follows:

	January 1, 2019			Expenditures/ (Receipts)			Remeasurement of Assets and Liabilities			December 31, 2019
Assets:
Estimated rents and reimbursements	$	3,418,285		$	(2,600,047	)	$	3,491,090		$	4,309,328
Liabilities:
Property operating costs		(2,084,955	)		1,536,010			(2,046,009	)		(2,594,954	)
Capital expenditures		(1,130,844	)		616,230			40,481			(474,133	)
Land entitlement costs		(1,468,474	)		1,422,192			(1,800,845	)		(1,847,127	)
Corporate expenditures		(4,904,367	)		2,167,814			(3,459,998	)		(6,196,551	)
Selling costs on real estate assets*		(2,437,076	)		-			(1,060,124	)		(3,497,200	)
Retention bonus payments to directors, officers and employees*		(1,984,733	)		14,573			(2,710,358	)		(4,680,518	)
Less prepaid expenses and other assets		397,854			205,825			-			603,679
Liability for estimated liquidation and operating costs net of estimated receipts	$	(10,194,310	)	$	3,362,597		$	(7,545,763	)	$	(14,377,476	)

*The amounts reported are based on the provisions of the retention bonus plan and the reported amount of the real estate assets estimated net realizable value.