What changed in this filing

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Item 7. Management’s Discussion and Analysis

2024-03-27 compared with 2023-03-28 · 50 added, 43 removed, 71 unchanged (57% of the section changed)

12 unchanged sentences

of Directors is considering strategic uses for its funds to develop or acquire interests in one or more operating businesses.

the Company has focused its development or acquisition efforts on sectors in which our management has expertise, the Company does not

the Company has focused its development or acquisition efforts on sectors in which its management has expertise, the Company does not

wish to limit itself to, or to foreclose any opportunities in, any particular industry or sector.

Prior to this use, the Company’

anticipate will continue to be, invested in high-grade, short-term investments (such as cash and cash equivalents and U.S.

anticipate will continue to be, invested in high-grade, short-term investments (such as cash and cash equivalents, U.S.

Treasury Bills,

consistent with the preservation of principal, maintenance of liquidity and avoidance of speculation, until such time as we need to utilize

such funds, or any portion thereof, for the purposes described above.

The directors will also consider alternatives for distributing

some or all of its cash and cash equivalents to stockholders (see Note 1 to the Consolidated Financial Statements).

and mutual funds) consistent with the preservation of principal, maintenance of liquidity and avoidance of speculation, until such time

as the Company needs to utilize such funds, or any portion thereof, for the purposes described above.

The directors will also consider

alternatives for distributing some or all of its cash and cash equivalents, and investments to stockholders (see Note 1 to the Consolidated

Financial Statements).

Investment in undeveloped properties.

19 unchanged sentences

degrees of judgment than others in their application.

These include stock-based compensation and accounting for income taxes which

are summarized below.

Stock-based compensation

Stock-based compensation cost for employees is

measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite

service period, which is generally the vesting period.

Stock-based compensation cost for consultants is initially measured at the grant

date based on the fair value of the award, remeasured each reporting date until the instrument vests, at which time the cost is established.

The cost is recognized as an expense on a straight-line basis, as adjusted each reporting period, over the requisite service period, which

is generally the vesting period.

See Note 8 to the Consolidated Financial Statements for further information regarding the Company’s

stock-based compensation assumptions and expense.

These include accounting for income taxes and fair value measurements of investments

which are summarized below.

Deferred tax assets and

14 unchanged sentences

for further information regarding the Company’s income taxes.

Fair value measurements

value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal

or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.

A three-level fair value hierarchy is required to prioritize the inputs used to measure fair value.

The three levels of the fair value

hierarchy are described as follows:

1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

2 – Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available.

inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data

obtained from sources independent of the Company.

3 – Unobservable inputs.

Unobservable inputs reflect the assumptions that the Company develops based on available information about

what market participants would use in valuing the asset or liability.

Results of Operations

4 unchanged sentences

the year ended December 31, 2022.

The increased loss of $91,000 was primarily the

result of an increase in Other operating expenses of $49,000, increase in Compensation and benefits of $10,000, and a decrease in Interest

and other income of $32,000.

The decreased loss of $201,000 was primarily the

result of a decrease in Other operating expenses of $54,000 and an increase in Interest and other income of $145,000.

Other operating expenses

1 unchanged sentence

expenses were $714,000 as compared to $768,000 for the year ended December 31, 2022.

The increased operating expenses of $49,000 were

primarily the result of increased professional fees of $42,000 and increased other expenses of $27,000, offset by decreased insurance

expense of $8,000 and decreased equity-based compensation expense of $12,000.

The decreased operating expenses of $54,000

was primarily the result of decreased directors’ fees of $85,000, decreased professional fees of $6,000, and decreased other expenses

of $6,000, offset by increased expenses related to the repair and maintenance and legal fees incurred in relation to the Company owned

dam properties of $43,000.

The properties were fully impaired as of December 31, 2018.

Interest and other income

1 unchanged sentence

and other income was $166,000 as compared to $21,000 for the year ended December 31, 2022.

The decreased interest and other income of $32,000

was primarily the result of increased interest income of $ 21,000, offset by decreased gain on extinguishment of debt of $53,000.

For the years ended December 31, 2022 and 2021,

the income tax expense of zero and approximately $2,000, respectively, substantially represents accruals related to state minimum income

The Company recorded a full valuation allowance

against its net deferred tax assets as of December 31, 2022 and 2021.

Due to a full valuation allowance to offset deferred tax assets

related to net operating loss carryforwards attributable to the loss, no tax benefit has been recorded in relation to the pre-tax loss

The increased interest and other income,

including net realized gains and losses on U.S.

Treasury bills, of $145,000 was primarily the result of the higher yields related to the

investments in U.S.

Treasury securities and mutual funds, and related interest income of $161,000 during the year ended December 31, 2023.

For the years ended December

31, 2023 and 2022, the Company recorded no income tax expense.

The Company recorded

a full valuation allowance against its net deferred tax assets as of December 31, 2023 and 2022.

Due to a full valuation allowance on

the deferred tax assets related to net operating loss carryforwards, no tax benefit has been recorded in relation to the pre-tax loss

for the years ended December 31, 2023 and 2022.

Financial condition, liquidity, and capital

Financial condition, liquidity, and capital resources

Liquidity and Capital Resources

At December 31, 2023, the Company had cash and

cash equivalents totaling $90,000 and short-term U.S.

Treasury Bills totaling $4,130,000 which it intends to use to acquire interests

in one or more operating businesses and to fund the Company’s general and administrative expenses.

The directors will also consider

alternatives for distributing some or all of its cash and cash equivalents and investments to stockholders.

The Company believes

that its working capital is sufficient to support its operating requirements through March 31, 2024.

The decrease in cash and cash equivalents of $5,306,000

for the year ended December 31, 2022 was primarily the result of $1,160,000 used in operating activities, investment in U.S.

Bills of $4,098,000, and the repurchase of Treasury stock for $48,000.

cash equivalents totaling $125,000 and short-term investments in U.S.

Treasury Bills, and mutual funds totaling $3,144,000 which it intends

to use to acquire interests in one or more operating businesses and to fund the Company’s general and administrative expenses.

directors will also consider alternatives for distributing some or all of its cash and cash equivalents and investments to stockholders.

The Company believes that its working capital is sufficient to support its operating requirements through March 31, 2025.

The increase in cash and cash equivalents of $35,000

for the year ended December 31, 2023 was primarily the result of $965,000 used in operating activities and proceeds from redemptions of

investments in U.S.

Treasury Bills of $1,735,000, offset by the purchase of mutual funds of $735,000.

Quantitative and Qualitative

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis