2375 OCEAN AVENUE

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as $5,702 and $5,141, respectively. As of December 31, 2023, there were no arrears on these apar tments. The Sponsor is also the holder of all three mortgage notes discussed in Note 4. (12) SUBSEQUENT EVENTS Management has evaluated subsequent events throug h January 28, 2025, the date at which the financial state ments became available for issuan ce. No events have occurred that would require adjustments to, or disclosure in, the financial statements.

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, 2017 – September 30, 2022). The terms of the first and second mortgages are both the s ame, first five (5) years fixed at 4.25% interest only. The mortgage notes are collateralized by the land and building owned by the Corporation. After five (5) years on a change date of October 1, 2022, the interest rate for the next five (5) years (October 1, 2022 – September 30, 2027) will be based upon the greater of 4.25% or the five-year treasury note rate in effect as of October 1, 2022, plus 250 basis points to the maturity date for both first and second obligations of September 30, 2027 when the principal balance of both notes ($823,000 and $245,000) will be du e and pay able in one lump sum. Mortgage interest expense for the two mortgages for the years ending December 31, 2021 and 2020 was $44,666 and $49,645, respectively, which includes amortized debt issuance cost of $1,765 and $1,7 65 respectively .

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, 2017 – September 30, 2022). The terms of the first and second mortgages are both the s ame, first five (5) years fixed at 4.25% interest only. The mortgage notes are collateraliz ed by the land and building owned by the Corporation.

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sor in the amount of $100,000. Monthly payments are interest only at a rate of 6.56%. The note terms are co-terminus with the terms of the other two mortgage notes. Mortgage interest expense for the three mortgages for the years ending Decembe r 31, 2023 and 2022 ,was $74, 927 and $55,169, respectively, which includes amortized debt issuance costs of $1,765 and $1,765 respectively. (5) FUTURE MAJOR REPAIRS AND REPLACEMENTS The Corporat ion has not conducted a study to determine the remaining useful lives of the components of common property and current estimat es of costs of major repairs and replacemen ts that may be required in the future. When replacement funds are needed to meet future needs for major repairs and replacements, the Corporation may have the right to borrow, utilize available cash, increase maintenance charges, pass special assessments or delay repair s and replacement s until the funds are available. The effect on future assessments has not been determined at t

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amounts as shown on the statements of cash flows as of December 31, 202 1 and 2020. 2021 2020 Cash – Operating Account $ 57,085 $ 79,324 Cash – Reserve Fund 12,886 10,001 Total cash and cash equivalents as shown on the statements of cash flows $ 69,971 $ 89,325 (4) MORTGA GES PAYABLE Mortgages Pay able As of October 1, 2017, the Sponsor agreed to extend the two mortgages for a ten (10) year period. The new first mortgage in the original amount of $823,000 requi res monthly payments of $2,915 applied to in terest only at 4.25% for the first five (5) years (October 1, 2017 – September 30, 2022). The new second mortgage in the original amount of $245,000 requires monthly payments of $868 applied to interest only at 4.25% for the first five ( 5) years (October 1, 2017 – September 30, 2022). The terms of the first and second mortgages are both the s ame, first five (5) years fixed at 4.25% interest only. The mortgage notes are collateralized by the land and building

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h. The Holders of the Unsold Shares are current on all financial obligations under the Plan, including but not limited to maintenance, reserve and working capital fund payments, assessments and payments for repairs or i mprovements and was current o n all such obligations for the year prior to the filing of this Amendment. i. The Holders of the Unsold Shares, 2375 Ocean LLC, 2375 Ocean 1L LLC and 2375 Ocean 2C LLC do not own more than 10% of cooperative/condominium units in cooperative/condominium buildings other than 2375 Ocean Avenue j. Control of the Board was turned over to the resident unit owners on July 23, 1991.The Board of Directors is controlled by the resident shareholders. The board members are George Apon (President), Analia Keenan (Vice President/Secretary), Cynthia Strauss (Vice-President and Assistant Treasurer) and Ruslan Mimer. 3. BUDGET The January 2025 annual budget is attached hereto as Exhibit B.

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Insurance 44,632 42,149 New York State franchise taxes 5,064 866 Real estate taxes 52,119 67,736 TOTAL CURRENT ASS ETS 171,210 205,464 FUND Reserve Fund 12,886 10,001 TOTAL FUND 12,886 10,001 PROPERTY AND EQUIPMENT Land 149,458 149,458 Building 1,197,007 1,197,007 Building improvements 655,149 655,149 Less: Accumulated depreciation (1,296,912) (1,251,242) NET PROPERTY AND EQUIPMENT 704,702 750,372 TOTAL ASSETS $ 888,798 $ 965,837

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2375 OCEAN OWNERS CORPORATION NOTES TO FINANCIAL STATEMENTS As of December 31, 2 021 and 2020 -9- (5) FUTURE MAJOR REPAIRS AND REPLACEMENTS The Corporat ion has not conducted a study to determine the remaining useful lives of the com ponents of co mmon property and current estimates of costs of majo r repairs and replacements that may be required in the future. When replacement funds are needed to meet future needs for major repairs and replacements, the Corporation m ay have the right to borrow, utilize available cash, increase maintenance charges, pass special assessments or delay repairs and replacements until the funds are available. The effect on future assessments has not been determined at this time. As of December 31, 2021, the Corporation has Reserve Funds totaling $12,886 to be used for future repairs and replacements when needed. (6) INCOME TAXES The U.S. Tax Court has rul ed that housing cooperatives are subject to Subchapter T of the Internal Revenue Code (IRC).

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Insurance 32,127 46,6 44 New York State franchise taxes 3,764 4,914 Real estate taxes 60,348 54,272 TOTAL CURRENT ASS ETS 177,528 129,383 FUND Reserve Fund 31,503 15,774 TOTAL FUND 31,503 15,774 PROPERTY AND EQUIPMENT Land 149, 458 149,458 Building 1,197,007 1,197,007 Building improvements 829,150 655,149 Less: Accumulated depreciation (1,393,885) (1,342,350) NET PROPERTY AND EQUIPMENT 781,730 659,264 TOTAL ASSETS $ 990,761 $ 804,421

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e amounts as shown on the statements of cash flows as of December 31, 202 3 and 2022. 2023 2022 Cash – Operating Account $ 69,386 $ 16,670 Cash – Reserve Fund 31,503 15,774 Total cash and cash equivalents as shown on the statements of cash flows $ 100,889 $ 32,444 (4) MORTGA GES PAYABLE As of October 1, 20 17, the Sponsor agreed to extend the two mortgages for a ten (10) year period. The new first mortgage in the original amount of $823,000 requi res monthly payments of $2,915 applied to in terest only at 4.25% for the first five (5) years (October 1, 2017 – September 30, 2022). The new second mortgage in the original amount of $245,000 requires monthly payments of $868 applied to interest only at 4.25% for the first five ( 5) years (October 1, 2017 – September 30, 2022). The terms of the first and second mortgages are both the s ame, first five (5) years fixed at 4.25% interest only. The mortgage notes are collateraliz ed by the land and building owned by the Co

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embe r 31, 2023 and 2022 ,was $74, 927 and $55,169, respectively, which includes amortized debt issuance costs of $1,765 and $1,765 respectively. (5) FUTURE MAJOR REPAIRS AND REPLACEMENTS The Corporat ion has not conducted a study to determine the remaining useful lives of the components of common property and current estimat es of costs of major repairs and replacemen ts that may be required in the future. When replacement funds are needed to meet future needs for major repairs and replacements, the Corporation may have the right to borrow, utilize available cash, increase maintenance charges, pass special assessments or delay repair s and replacement s until the funds are available. The effect on future assessments has not been determined at this time. As of December 31, 2023, the Corporation has Reserve Funds totaling $31,503 to be used for future repairs and replacements when needed. (6) INCOME TAXES The U.S. Tax Court has rul ed that housing cooperatives are subject to Subch

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te the impact to its activities, revenues, financial conditions or res ults of operations, however, such impact could be significantly negative. (9) SPECIAL ASSESSMENTS During t he course of 2021, the corporation levied a special assessment of $3.50 per share totaling $72,450. These funds were used toward operations and to offset the co-op tax abatement. During the c ourse of 2020, the Corporation levied two special assessments. The first assessm ent in the am ount of $2.49 per share totaling $51,670 was used to fund operations and was offset with the co-op tax abatement. The second assessment in the am ount of $2.96 per share totaling $61,576 was also used to fund operations. Both assess ments were payable in monthly installments. (10) PRIOR PERIOD ADJUSTMENTS Prior period adjustments totaling $17,682 relating to abatements, depreciation and retained earnings were recorded in order to reconcile the books and records as of January 1, 2020. (11) RELATED PA RTY TRANSACTIONS As of Dec

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DEF ICIT For The Years Ended Decem ber 31, 2021 and 2020 2021 2020 INCOME Income fro m Shareholders Maintenance charges $ 509,842 $ 486,200 Special assessment – (Note 9) 72,450 113,246 Sublet fees 1,465 323 Late charges 625 250 Total Income from Shareholders 584,382 600,019 Other Income Interest 14 47 Laundry 3,900 3,900 Storage 9,300 7,440 Total Other Income 13,214 11,387 TOTAL INCOME 597,596 611,406 COST OF OPERATIONS Ad ministrative expenses Schedule 1 110,058 120,372 Operating expenses Schedule 2 126,903 112,313 Maintenance expenses Schedule 3 65,335 41,456 Taxes Schedule 4 280,678 292,606 Interest on mortgage payable – (includes amortized debt issuance costs) Schedule 5 44,666 49,645 TOTAL COST OF OPERATIONS 627,640 616,392 LOSS FROM OPERATIONS BEFORE DEPRECIATION (30,044) (4,986) Depreciation Schedule 6 (45,670) (45,131) NET LOSS (75,714) (50,117) Beginning Accumulated Deficit (770,477) (738,042) Prior period adjustments – (No

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needs for major repairs and replacements, the Corporation m ay have the right to borrow, utilize available cash, increase maintenance charges, pass special assessments or delay repairs and replacements until the funds are available. The effect on future assessments has not been determined at this time. As of December 31, 2021, the Corporation has Reserve Funds totaling $12,886 to be used for future repairs and replacements when needed. (6) INCOME TAXES The U.S. Tax Court has rul ed that housing cooperatives are subject to Subchapter T of the Internal Revenue Code (IRC). Subchapter T limits the use of patronage losses as deductions to the extent of patronage income. Income is patronage sourc ed if it derived from an activ ity that is so closely intertwined with the ma in cooperative effort that it m ay be characterized as directly related to, and inseparable from, the cooperative’s principal business activity, and this facilitates the accomplishment of the cooperative’s business

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DEF ICIT For The Years Ended December 31, 20 23 and 2022 2023 2022 INCOME Income from Shareholders Maintenance charges $ 580,428 $ 521,738 Special assessment – (Note 8) 93,150 93,150 Sublet fees 2,030 613 Late charges 450 675 Total Income from Shareholders 676,058 616,176 Other Income Interest 17 8 Laundry 5,719 4,550 Storage 9,125 9,300 Total Other Income 14,861 13,858 TOTAL INCOME 690,919 630,034 COST OF OPERATIONS Administrative expenses Schedule 1 128,007 116,259 Operating expenses Schedule 2 134,211 170,963 Maintenance expenses Schedule 3 53,515 53,461 Taxes Schedule 4 315,277 293,210 Financial Expense Schedule 5 74,927 55,169 TOTAL COST OF OPERATIONS 705,937 689,062 LOSS FROM OPERATIONS BEFORE DEPRECIATION AND CAPITAL ASSESSMENT (15,018) (59,028) Depreciation Schedule 6 (51,535) (45,438) Capital Assessment – (Note 8) 165,600 - NET INCOME ( LOSS) 99,047 (104,466) Beginning Accumulated Deficit (950,657) (846,191) Prior Peri

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e needs for major repairs and replacements, the Corporation may have the right to borrow, utilize available cash, increase maintenance charges, pass special assessments or delay repair s and replacement s until the funds are available. The effect on future assessments has not been determined at this time. As of December 31, 2023, the Corporation has Reserve Funds totaling $31,503 to be used for future repairs and replacements when needed. (6) INCOME TAXES The U.S. Tax Court has rul ed that housing cooperatives are subject to Subchapter T of the Internal Revenue Code (IRC). Subchapter T limits the use of patronage losses as deductions to the extent of patronage income. Income is patronage sourced if it is der ived from an ac tivity that is so closely intertwined with the main cooperative effort that it m ay be characterized as directly related to, and inseparable from, the cooperative’s principal business activity, and this facilitates the accomplishment of the cooperative’s busi

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the last two quarters of the 2021/2 022 tax year and the first two quarters of 2022/2023. This amount was credited to the eligible shareholders. (8) SPECIAL ASSESSMENTS Operating As sessments During 2023, the Corporation levied a special assessme nt of $4.50 per share totaling $93,150. These funds were used toward operations and to offset the Co-op tax abatement. During 2022, the Corporation levied a special ass essment of $4.50 per share totaling $93,150. These funds were used toward operations and to offset the Co-op tax abatement. Capital Assessment During 2023, the Corporation levied a capital assessment of $8.00 per share totaling $165,600. These funds were used to pay for the elevator renovations perfo rmed by Precision Elevator in the amount of $174,000. As of December 31, 2023, these renovations have been completed and paid for. (9) PRIOR PERIOD ADJUSTMENT A prior period adjustment was made in 2023 due to accrued expenses that have been carried on the books as of December 3

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021 and 2020 2021 2020 INCOME Income fro m Shareholders Maintenance charges $ 509,842 $ 486,200 Special assessment – (Note 9) 72,450 113,246 Sublet fees 1,465 323 Late charges 625 250 Total Income from Shareholders 584,382 600,019 Other Income Interest 14 47 Laundry 3,900 3,900 Storage 9,300 7,440 Total Other Income 13,214 11,387 TOTAL INCOME 597,596 611,406 COST OF OPERATIONS Ad ministrative expenses Schedule 1 110,058 120,372 Operating expenses Schedule 2 126,903 112,313 Maintenance expenses Schedule 3 65,335 41,456 Taxes Schedule 4 280,678 292,606 Interest on mortgage payable – (includes amortized debt issuance costs) Schedule 5 44,666 49,645 TOTAL COST OF OPERATIONS 627,640 616,392 LOSS FROM OPERATIONS BEFORE DEPRECIATION (30,044) (4,986) Depreciation Schedule 6 (45,670) (45,131) NET LOSS (75,714) (50,117) Beginning Accumulated Deficit (770,477) (738,042) Prior period adjustments – (Note 10) - 17,682 Ending Accumulated Deficit $ (

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0 23 and 2022 2023 2022 INCOME Income from Shareholders Maintenance charges $ 580,428 $ 521,738 Special assessment – (Note 8) 93,150 93,150 Sublet fees 2,030 613 Late charges 450 675 Total Income from Shareholders 676,058 616,176 Other Income Interest 17 8 Laundry 5,719 4,550 Storage 9,125 9,300 Total Other Income 14,861 13,858 TOTAL INCOME 690,919 630,034 COST OF OPERATIONS Administrative expenses Schedule 1 128,007 116,259 Operating expenses Schedule 2 134,211 170,963 Maintenance expenses Schedule 3 53,515 53,461 Taxes Schedule 4 315,277 293,210 Financial Expense Schedule 5 74,927 55,169 TOTAL COST OF OPERATIONS 705,937 689,062 LOSS FROM OPERATIONS BEFORE DEPRECIATION AND CAPITAL ASSESSMENT (15,018) (59,028) Depreciation Schedule 6 (51,535) (45,438) Capital Assessment – (Note 8) 165,600 - NET INCOME ( LOSS) 99,047 (104,466) Beginning Accumulated Deficit (950,657) (846,191) Prior Period Adjustment – (Note 9) 13,248 - Ending Accu