Building debt & maturity · 5 source passages
PDF page 7 · financial statements as of 2024-12-31
9,481
Security deposits payable 12,700 11,700
Line of credit payable (Note 6) 493,491 343,491
Mortgage note payable (Note 6) 2,088,253 2,103,626
Total liabilities 2,926,859 2,667,759
Shareholders' equity:
Common stock, no par value; authorized 4,765 shares
issued and outstanding 4,630 shares 225,000 225,000
Treasury stock (Note 11) (85,000) (85,000)
Additional paid-in capital 216,567 216,567
Accumulated deficit (1,876,622) (1,718,131)
Total shareholders' equity (1,520,055) (1,361,564)
Total liabilities and shareholders' equity $1,406,804 $1,306,195
as of December 31, 2024 and 2023
Balance Sheets
________
PDF page 10 · financial statements as of 2024-12-31
(68,423)
Net cash used in investing activities (24,000) (68,423)
CASH FLOWS FROM FINANCING ACTIVITIES:
Decrease in mortgage note payable (24,755) (32,295)
Increase in line of credit 150,000 -
(Decrease) increase in bank overdraft (2,383) 2,383
Net cash provided by (used in) financing activities 122,862 (29,912)
Net increase (decrease) in cash 72,448 (57,328)
Cash, beginning of year 15,610 72,938
Cash, end of year $88,058 $15,610
SUPPLEMENTAL DISCLOSURE FOR STATEMENTS OF CASH FLOWS:
Interest paid $297,533 $232,436
Income taxes paid $1,265 $1,150
for the years ended December 31, 2024 and 2023
Statements of Cash Flows
________
PDF page 13 · financial statements as of 2024-12-31
projects were completed or remain in progress:
2024 2023
Bulkhead - $68,423
Windows $24,000 -
$24,000 $68,423
6. Mortgage Note Payable:
On October 28, 2014, the Corporation amended and restated its mortgage note payable with
New York Community Bank (“NYCB”) for $2,600,000 at a floating interest rate between 3.5%
to 16%. The mortgage note is secured by the land and building, and requires monthly principal
and interest payments of approximately $21,420 . The mortgage matures on November 1, 2026,
at which time the remaining balance will become due.
PDF page 14 · financial statements as of 2024-12-31
A Cooperative Housing Corporation)
Notes to Financial Statements
December 31, 2024 and 2023
_______
11
As of December 31, 2024 and 2023, the mortgage note payable and associated unamortized debt
issuance costs were as follows:
2024 2023
Mortgage note payable $2,105,447 $2,130,202
Less: unamortized debt issuance costs (17,194) (26,576)
Net mortgage note payable $2,088,253 $2,103,626
Principal maturities of the mortgage note payable for each of the years ending December 31 are
as follows:
Year
2025 70,978
2026 2,034,469
$2,105,447
On October 28, 2014, the Corporation also obtained a revolving line of credit from N YCB for
$500,000 at a floating interest rate between 4.50% to 16% . The line of credit will concurrently
mature with the first mor tgage on November 1, 2026. On April 18, 2024, the Corporation
withdrew $150,000 from the credit line. As of December 31, 2024 and 2023 , the outstanding
balance of the credit line amounted to $493,491 and $343,491 respecti
PDF page 19 · financial statements as of 2024-12-31
. Fair Value Measurements:
The Corporation’s financial instruments include cash, accounts receivable, acc ounts payable
and accrued expenses, and mortgage note payable. The carrying values of cash, accounts
receivable, and accounts payable approximate their fair values due to the short -term maturities
of these instruments. The fair value of the mortgage note p ayable approximates its carrying
amount because it bears interest at a prevailing market rate.
Assessments & charge increases · 3 source passages
PDF page 12 · financial statements as of 2024-12-31
p.
(A Cooperative Housing Corporation)
Notes to Financial Statements
December 31, 2024 and 2023
_______
9
The Board of Directors may impose special assessments when additional funds are needed.
These assessments are recognized as revenue when the funds are expended for their designated
purposes. Any unexpend ed balance of special assessments will be recognized as a contract
liability and reported as deferred income.
Effective June 1, 2024 and March 1, 2023, the Corporation increased maintenance charges by
5%.
Additional Paid in Capital:
Amortization of mortgage principal is recorded as an increase in additional paid-in capital and
reduction of maintenance charges paid by shareholders.
Disaggregated Revenues:
The Corporation derives its revenue from various activities and sources, each having different
qualitative factors that may affect the amount, timing, or uncertainty of revenue and cash flows.
These disaggregated revenues are disclosed in Note 17.
Con
PDF page 17 · financial statements as of 2024-12-31
2023
_______
14
When funds are needed for major repairs and rep lacements, the Corporation has the right to
increase maintenance charges, levy special assessments, or delay major repairs and
replacements until funds are available. Key components of the property, including the building
structure and systems, have long l ives approximately 30 years based on industry practices.
Management intends to continue assessing repair needs annually . As of December 31, 2024 and
2023, the effect on future assessments has not been determined.
16. Lease Rent Income:
The Corporation leased Unit 2G for $1,950 per month. For each of the years ended December
31, 2024 and 2023, such lease rent income amounted to $23,400.
The Corporation has an agreement with Verizon Wireless (the “Tenant”) to install antenna for
five years with a monthly rent of $2, 000 with an annual increase of 15% in every five -year on
the preceding five-year term. This agreement will automatically renew for
PDF page 19 · financial statements as of 2024-12-31
of the years ended December 31, 2024 and 2023, the sponsor owned 754 shares
representing approximately 16% of total shares. Maintenance cha rges and special assessments
billed to the sponsor amounted to $115,414 and $105,762 in 2024 and 2023, respectively. As of
December 31, 2024 and 2023 , the sponsor had outstanding receivables of $2,080 and $8,190,
respectively.
21. Impairment:
In accordance with FASB ASC 360, long -lived assets, including property and equi pment, are
assessed for impairment whenever events or changes in circumstances suggest that the carrying
amount may not be recoverable through future discounted cash flows. If an asset is determined
to be impaired, it is written down to its fair value, which is measured based on discounted future
cash flows. Management has evaluated the assets and determined that no impairment occurred
in 2024 and 2023.
22. Fair Value Measurements:
The Corporation’s financial instruments include cash, accounts receivable, acc
Resale fees & restrictions · 2 source passages
PDF page 8 · financial statements as of 2024-12-31
Note 16) 93,329 93,329
Late fees and other charges 3,837 5,400
Interest income 111 84
Sublet fees 928 1,361
Other 6,050 6,450
Total revenues 815,800 756,058
EXPENSES:
Wages and related expenses 55,246 55,254
Real estate taxes 194,634 175,908
Interest expenses 306,797 245,551
Electric, gas and oil 42,795 47,041
Repair, maintenance, and supplies (Note 9) 82,080 69,420
Insurance 87,333 69,951
Professional fees 17,257 24,316
Water and sewer 73,027 80,239
Management fees (Note 8) 31,200 28,000
Income taxes (Note 12) 1,150 1,323
Office expenses 1,234 2,503
Permits and fees 1,480 615
Telephone 2,929 477
Other 232 979
PDF page 18 · financial statements as of 2024-12-31
60,000
Recognized revenue subject to ASC Topic 842:
Lease rent income 93,329 93,329
Not subject to ASC Topic 606:
Sublet fees 928 1,361
Interest, late fees and other income 9,998 11,934
815,800 756,058
Other:
Not subject to ASC Topic 606:
Insurance claim 37,926 -
$853,726 $756,058
The following table presents information about accounts recei vable, contract assets, and
contract liabilities reported as deferred income in the balance sheet:
2024 2023
Accounts receivable:
Beginning balance $74,548 $78,819
Ending balance 121,197 74,548
Contract assets:
There were no beginning or ending balances for - -
the years
Contract liabilities:
Deferred income - beginning balance 9,481 3,841
Deferred income - ending balance 21,141 9,481
18. Accounts