RESULTS OF OPERATIONS The Company reported net income of approximately $225,000 ($0.22 per share) for the three months ended September 30, 2021 and a net loss of $412,000 ($0.41 per share) for the nine months ended September 30, 2021. For the three and nine months ended September 30, 2020, the Company reported a net loss of approximately $71,000 ($0.07 per share) and a net loss of $910,000 ($0.90 per share), respectively.

REVENUES

Rentals and related revenues for the three and nine months ended September 30, 2021 were approximately $20,000 and $61,000, respectively and primarily consists of rent from the Advisor to CII for its corporate office. Rentals and related revenues for the three and nine months ended September 30, 2020 were approximately $20,000 and $59,000, respectively

Net realized and unrealized gain (loss) from investments in marketable securities: Net realized and unrealized gain from investments in marketable securities for the three and nine months ended September 30, 2021 was approximately $89,000 and $280,000, respectively. For the three and nine months ended September 30, 2020, net realized and unrealized gain (loss) from marketable securities was approximately $119,000 and ($266,000), respectively. Our marketable securities have recovered in line with the overall U.S. stock market recovery as a result of business re-openings after closures from the COVID-19 pandemic. For further details, refer to Note 6 to the Condensed Consolidated Financial Statements (unaudited).

Investment gains and losses on marketable securities may fluctuate significantly from period to period in the future and could have a significant impact on the Company's net earnings. However, the amount of investment gains or losses on marketable securities for any given period has no predictive value and variations in amount from period to period have no practical analytical value.

Equity income (loss) from operations of residential real estate partnership: Equity income (loss) from operations of residential real estate partnership for the three and nine months ended September 30, 2021 was approximately $19,000 and ($282,000), respectively. For further details, refer to Note 4 to the Condensed Consolidated Financial Statements (unaudited).

Income from other investments: Income from other investments for the three and nine months ended September 30, 2021 was approximately $374,000 and $507,000, respectively. Income from other investments for the three and nine months ended September 30, 2020 was approximately $68,000 and $240,000, respectively. For further details, refer to Note 7 to the Condensed Consolidated Financial Statements (unaudited).

Other than temporary impairment losses from other investments ("OTTI"): There were no OTTI valuation adjustments for the three and nine months ended September 30, 2021. OTTI valuation adjustments for three and nine months ended September 30, 2021, were zero and $315,000, respectively. This was the result of one investment written down in the first and second quarters of 2020. For further details, refer to Note 7 to the Condensed Consolidated Financial Statements (unaudited).

EXPENSES

Operating expenses from rental and other properties for the nine months ended September 30, 2021, as compared with the same period in 2020 increased by approximately $58,000 (or 95%). This was primarily due to a loss on the sale of land held for development located in Hopkinton, Rhode Island. The property had a carrying value of $209,000 and was sold for $200,000. After commissions, legal and closing costs the loss was approximately $29,000. The Company had attempted to develop this property for several years and was unsuccessful. We also incurred approximately $23,000 in pre-construction costs not previously billed relating to our property in Montpelier, Vermont.

General and administrative expenses for the nine months ended September 30, 2021, as compared with the same period in 2020 increased by approximately $20,000 (or 14%). This was primarily due to increased corporate insurance costs of approximately $6,000, increased dues and subscriptions of $9,000 and $5,000 in placement fees relating to other investments.

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Professional fees and expenses for the nine months ended September 30, 2021, as compared with the same period in 2020 increased by approximately $74,000 (or 16%). This was primarily due to increased accounting and legal fees.

EFFECT OF INFLATION: Inflation affects the costs of holding the Company's investments. Increased inflation would decrease the purchasing power of our mainly liquid investments.

LIQUIDITY, CAPITAL EXPENDITURE REQUIREMENTS AND CAPITAL RESOURCES The Company's material commitments primarily consist of a note payable to the Company's 49% owned affiliate, T.G.I.F. Texas, Inc. ("TGIF") of $400,000 due on demand and contributions committed to other investments of approximately $1.0 million due upon demand. The funds necessary to meet these obligations are expected from the proceeds from the sales of investments, distributions from investments and available cash.

MATERIAL COMPONENTS OF CASH FLOWS For the nine months ended September 30, 2021, net cash used in operating activities was approximately $910,000, primarily consisting of operating expenses.

For the nine months ended September 30, 2021, net cash provided by investing activities was approximately $1.38 million. This consisted primarily of net proceeds from sales and redemptions of marketable securities of $1.73 million, distributions from other investments of $1.03 million, distribution from affiliate of $138,000 and proceeds from the sale of the land in Hopkinton, Rhode Island of $130,000 (we took back a first mortgage of $50,000 on the sale). These sources of funds were partially offset by uses of cash consisting primarily of $890,000 in purchases of marketable securities, $504,000 of contributions to other investments, $204,000 of improvements to our Montpelier, Vermont property and $122,000 of loans to one of the partners in the Vermont property.

For the nine months ended September 30, 2021, net cash used in financing activities was approximately $624,000, consisting of $504,000 dividend paid and $250,000 principal payment on note due to affiliate, partially offset by proceeds from the exercise of stock options of $130,000.

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