| ASSETS | |
| CURRENT ASSETS | |
| Cash and Cash Equivalents: | |
| Operating account | 27,792 | 
| Money Market accounts | 189,540 | 
| 217,332 | |
| Shareholders’ arrears | 3,584 | 
| Prepaid Expenses: | |
| Insurance | 18,835 | 
| Real estate taxes | 61,830 | 
| New York State and City Corporate taxes | -0- | 
| TOTAL CURRENT ASSETS | 301,581 | 
| RESERVE FUNDS | |
| Charles Schwab | |
| Cash | 7 | 
| Merrill Lynch | |
| Cash | 400,000 | 
| Certificates of Deposit | -0- | 
| TOTAL RESERVE FUNDS | 400,007 | 
| PROPERTY AND EQUIPMENT | |
| Land | 550,000 | 
| Building | 987,237 | 
| Building improvements | 1,014,745 | 
| Exterior renovation | 667,762 | 
| Maintenance equipment | 14,192 | 
| Storage units | 3,826 | 
| Boiler replacement | 125,030 | 
| Courtyard restoration | 38,624 | 
| Sidewalk | 16,790 | 
| Less: Accumulated depreciation | (2,129,027) | 
| NET PROPERTY AND EQUIPMENT | 1,289,179 | 
| OTHER ASSET | |
| Security deposit | 2,300 | 
| TOTAL ASSETS | 1,993,067 | 
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| CURRENT LIABILITIES | |
| Accounts payable and accrued expenses - Schedule 1 | 63,012 | 
| Accrued mortgage interest | 3,654 | 
| Prepaid maintenance charges | 12,755 | 
| Real estate tax abatements and exemptions payable | 107,610 | 
| Move in/out deposits payable | 500 | 
| TOTAL CURRENT LIABILITIES | 187,531 | 
| LONG TERM AND OTHER LIABILITIES | |
| Mortgage payable - (Note 4) | 1,240,000 | 
| Less: Unamortized debt issuance costs - (Note 2) | (23,892) | 
| Security deposit payable | 2,300 | 
| TOTAL LONG TERM AND OTHER LIABILITIES | 1,218,408 | 
| TOTAL LIABILITIES | 1,405,939 | 
| STOCKHOLDERS’ EQUITY | |
| Capital Stock - Common - Authorized and Issued 29,855 shares at $1 par value of which 335 shares are held as Treasury Stock - (Note 5) | 29,855 | 
| Paid-in Capital in excess of par value | 626,391 | 
| Paid-in Capital - Treasury Stock | 425,913 | 
| Accumulated Deficit | (484,036) | 
| Less: Treasury Stock at cost | (10,995) | 
| TOTAL STOCKHOLDERS’ EQUITY | 587,128 | 
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 1,993,067 | 
| INCOME | |
| Income from Shareholders | |
| Maintenance charges - Apartments | 1,528,546 | 
| Less: Vacancy loss - (Note 5) | (17,123) | 
| Operating assessment - (Note 7) | 120,146 | 
| Transfer fees - (Note 8) | 34,722 | 
| Late charges | 1,350 | 
| Sublet fees | 4,418 | 
| Storage | 6,921 | 
| Miscellaneous | -0- | 
| Total Income from Shareholders | 1,678,980 | 
| Other Income | |
| Rental - (Note 5) | 27,600 | 
| Laundry | 3,600 | 
| Interest | 1,287 | 
| Real estate tax refund | 12,122 | 
| Total Other Income | 44,609 | 
| TOTAL INCOME | 1,723,589 | 
| COST OF OPERATIONS | |
| Administrative expenses Schedule 2 | 123,992 | 
| Operating expenses Schedule 3 | 666,132 | 
| Maintenance expenses Schedule 4 | 103,022 | 
| Taxes Schedule 5 | 722,176 | 
| Financial expenses Schedule 6 | 48,235 | 
| TOTAL COST OF OPERATIONS | 1,663,557 | 
| INCOME (LOSS) FROM OPERATIONS BEFORE DEPRECIATION | 60,032 | 
| Depreciation Schedule 7 | (62,107) | 
| NET LOSS | (2,075) | 
| Beginning Accumulated Deficit | (481,961) | 
| Ending Accumulated Deficit | (484,036) |