42-22 KETCHAM STREET

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005 Prepaid Expenses: Insurance 3,815 3,446 Real estate taxes 59,593 63,771 Corporate taxes 1,967 -0- TOTAL CURRENT ASSETS 91,448 11 5,223 FUND Reserve Fund — Schedule I 369,030 368,069 PROPERTY AND EQUIPMENT Land 473,006 473,006 Building 4,257,049 4,257,049 Building improvements 1,279,010 1,401,292 Equipment and fixtures 348,419 348,419 Less: Accumulated depreciation (4,950,909) (4,856,012) NET PROPERTY AND EQUIPMENT 1,406,575 1,623,754 OTHER ASSET 8,443 8,443 investment in NCB B1 Stock — (Note 4) TOTAL ASSETS $ 1,875,496 $ 2,115,489 See Notes to Financial Statements. -2- TOVA REALTY CORP. EXHIBIT A BALANCE SHEETS As of December 31 2019 and 2018 ASSETS CURRENT ASSETS 2019 2018 Cash and cash equivalents: Operating account $ 23,681 $ 43,876 Money Market Account 126 125 23,807 44,001 Shareholders' arrears 2,266 4,005 Prepaid Expenses: Insurance 3,815 3,446 Real estate taxes 59,593 63,771 Corporate taxes 1,967 -0- TOTAL CURRENT ASSETS 91,448 115,223 FUN

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Common — Authorized, Issued and Outstanding 95,087 shares at $1 par value 95,087 95,087 Paid-in Capital in excess of par value 3,570,388 3,570,388 Working capital fund — (Note 8) 78,826 62,855 Accumulated Deficit (5,725,623) (5,434,109) TOTAL STOCKHOLDERS' DEFICIT (1,981,322) (1,705,779) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $__.1,8.75,496 $ 21 15,489 See Notes to Financial Statements. -3- TOVA REALTY CORP. EXHIBIT A BALANCE SHEETS As of December 31 2019 and 2018 LIABILITIES AND STOCKHOLDERS' DEFICIT 2019 2018 CURRENT LIABILITIES Accounts payable and accrued expenses $ 74,303 $ 65,171 Interest accrued on first mortgage payable 11,083 11,083 Interest accrued on second mortgage payable 4,004 4,004 Prepaid occupancy income 16,782 4,144 Due to holder of unsold shares — (Note 6) 31,619 29,738 Real estate tax abatements and exemptions payable — (Note 5) 12,634 11,522 TOTAL CURRENT LIABILITIES 150,425 125,662 LONG TERM AND OTHER LIABILITIES First Mortgage payabl

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ACTIVITIES Purchase of property and equipment (15,415) (32,548) Write off of previously capitalized property and equipment 149,535 -0- Increase in working capital fund 15,971 -0- CASH PROVIDED (USED) BY INVESTING ACTIVITIES 150,091 (32,548) NET DECREASE IN CASH AND CASH EQUIVALENTS (19,233) (90,898) Cash and cash equivalents at beginning of year 412,070 502,968 Cash and cash equivalents at end of year $ 392,837 $ 412,070 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION EXHIBIT D 2019 2018 Cash paid during the year: Corporate taxes $ 5,124 175 Interest $ 177,633 $ 177,633 Non -Cash Investing and Financing Activities: Additions to property and equipment accrued for the year ending December 3 I, 2019 was $11,837. See Notes to Financial Statements. -5- TOVA REALTY CORP. EXHIBITS C & D STATEMENTS OF CASH FLOWS EXHIBIT C For The Years Ended December 31, 2019 and 2018 CASH FLOWS FROM OPERATING ACTIVITIES 2019 2018 Net loss $ (291,514) $ (161,641) Adjustments to reconci

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of cash flows as of December 31, 2019 and 2018. 2019 2018 Cash — Operating Account $ 23,681 $ 43,876 Cash — Money Market Account 126 125 Cash — Reserve Fund 369,030 368,069 Total cash and cash equivalents as shown on the statements of cash flows 92837 412,070 Note 4. INVESTMENT The Corporation holds Class B1 Stock of its mortgage holder, the National Cooperative Bank ("NCB"). Class Bl Stock was purchased to satisfy the minimum 1% stock purchase at the time of the mortgage loan. The Bank Act does not allow a dividend to be paid on this stock. Class B1 Stock held by the Corporation was $8,443 as of December 31, 2019. Class B2 Stock is acquired through patronage refunds. The stock is currently non-transferrable and non- redeemable. The Bank Act does not allow a dividend to be paid on this stock. If a borrower accumulates over 12.5% of its loan amount in Class B Stock, the member owner may receive Class C Stock. Class C Stock can be held only by eligible borrowers of NCB. C

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for the second mortgage was $51,160 which includes amortized debt issuance costs of $4,014 for each of the years ended December 31, 2019 and 2018. WORKING CAPITAL A Working Capital Fund was established as required by the terms of the Offering Plan. ,At the closing of each unit that is purchased from the Holder of Unsold Shares, the purchaser is required to make a contribution in an amount equal to two months of maintenance charges. As of December 31, 2019, the accumulated working capital contributions totaled $78,826. Note 9. ASSESSMENT In July 2019, an operating assessment was implemented for $0.20 per share to be charged in one monthly installment. Assessment income totaled $18,768. To minimize the effect to the shareholders, the assessment was charged in the same period the credits for the co-op tax abatements were returned to the shareholders. Note 10. STORAGE RENTAL INCOME On July 19, 2016, the Corporation entered into a contract with Bargold Storage Systems LLC. Und

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ring each of the years ended December 31, 2019 and 2018, Tova Realty Corp. paid $44,100 to The Pinnacle Group for its management services. Note 14. FUTURE MAJOR REPAIRS AND REPLACEMENTS The Corporation's board of directors has not authorized a study to determine the remaining useful lives of the components of common property and current estimates of the costs of major repairs and replacements that may be required in the future. Further, a plan has not been developed to fund those needs. The Corporation's governing documents provide for the levying of special assessments or the increasing of regular assessments when major repairs and replacements are needed. When funds are required for major repairs and replacements, the Board of Directors plan to borrow, increase maintenance assessments or delay repairs and replacements until such funds are available. The effect on future assessments has not been determined at this time. As such, the Corporation has not presented supplementa

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TOVA REALTY CORP. SUPPORTING SCHEDULE - BALANCE SHEETS As of December 31, 2019 and 2018 RESERVE FUND 2019 2018 Schedule I Balance — January 1, $ 368,069 $ 486,272 Add: Interest income 96 I 965 Less: Transfers to operations -0- (119,168) Balance — December 31, 369,030 $ 368,069 Consisting of: NCB Bank — Controlled Money Market Escrow $ 162,040 $ 161,797 -- Money Market Escrow 11,196 11,162 — Capital Expenditure Reserve — Money Market Plus 195,794 195,1 10 TOTAL RESERVE FUND — December 31, $ 369,030 $ 368,069 See Auditor's Report on Supplementary Information. -14- TOVA REALTY CORP. SUPPORTING SCHEDULE — BALANCE SHEETS As of December 31, 2019 and 2018 RESERVE FUND 2019 2018 Schedule 1 Balance — January 1, $ 368,069 $ 486,272 Add: Interest income 961 965 Less: Transfers to operations -0- (119,168) Balance — December 31, $ 369,030 $__ 368,069 Consisting of: NCB Bank —Controlled Money Market Escrow $ 162,040 $ 161,797 — Money Market Escrow 11,196 11,162 — Capit

PDF page 24 · financial statements as of 2019-12-31

required in the future. Further, a plan has not been developed to fund those needs. The Corporation's governing documents provide for the levying of special assessments or the increasing of regular assessments when major repairs and replacements are needed. When funds are required for major repairs and replacements, the Board of Directors plan to borrow, increase maintenance assessments or delay repairs and replacements until such funds are available. The effect on future assessments has not been determined at this time. As such, the Corporation has not presented supplemental information on future repairs and maintenance as required by accounting principles generally accepted in the United States of America. The Corporation has a reserve turd in the amount of $369,030 to provide for future capital expenditures and major replacements when needed. Note 15. CORPORATION TAXES The U.S. Tax Court has ruled that housing cooperatives are subject to Subchapter T of the Internal Reve

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s collected from the shareholders, if settlement proceeds are not sufficient. To date Associates has not been advised by the Apartment Corp. of any Special Assessment to pay the cost and expenses of the lawsuit. Existing shareholders who purchased apartments directly from the Prior Sponsor Entities do not have use of certain amenities promised in marketing materials produced by the Prior Sponsor Entities, including the roof deck, but never delivered, which amenities are at issue in the litigation. Associates does not believe that the lawsuit will materially affect the Plan. No settlement has occurred. The litigation is in the discovery stage. After Associates receives notice from the Apartment Corp. of any costs and expenses that shareholders will be obligated to pay in connection with the aforesaid lawsuit (to the extent that settlement proceeds are not sufficient) and how the Apartment Corp. intends to collect the costs and expenses of the lawsuit from shareholders (such as

PDF page 18 · financial statements as of 2019-12-31

er 31, 2019 and 2018 EXHIBIT B 2019 2018 INCOME Income from Shareholders Maintenance charges $ 908,250 865,000 Assessment — (Note 9) 18,768 -0- Sublet fees 3,201 1,838 Storage — (Note 10) 3,786 3,191 Transfer fees — (Note 11) 23,940 941 Miscellaneous charges 9,600 2,499 Total Income from Shareholders 967,545 873,469 Other Income Rental — (Note 12) 20,100 18,687 Interest 961 965 NCB Patronage refund — (Note 4) 3,625 2,847 Total Other Income 24,686 22,499 TOTAL INCOME 992,231 895,968 COST OF OPERATIONS Administrative and management expenses Schedule 2 214,382 184,545 Operating expenses Schedule 3 241,132 259,095 Repairs and maintenance expenses Schedule 4 131,765 92,961 Taxes Schedule 5 263,613 237,616 Financial expenses Schedule 6 188,421 188,421 TOTAL COST OF OPERATIONS 1,039,313 962,638 LOSS FROM OPERATIONS BEFORE DEPRECIATION AND OTHER ITEM (47,082) (66,670) Depreciation Schedule 7 (94,897) (94,971) Expense of prior year capital improvement — (Note 16) (149

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the purchaser is required to make a contribution in an amount equal to two months of maintenance charges. As of December 31, 2019, the accumulated working capital contributions totaled $78,826. Note 9. ASSESSMENT In July 2019, an operating assessment was implemented for $0.20 per share to be charged in one monthly installment. Assessment income totaled $18,768. To minimize the effect to the shareholders, the assessment was charged in the same period the credits for the co-op tax abatements were returned to the shareholders. Note 10. STORAGE RENTAL INCOME On July 19, 2016, the Corporation entered into a contract with Bargold Storage Systems LLC. Under the terms of the agreement, Bargold Storage Systems LLC is responsible for the maintenance of the storage units. The agreement is for ten years effective September 1, 2016 and the Corporation receives 25% of collections. For the years ended December 31, 2019 and 2018, the Corporation received $3,786 and $3,191, respectively.

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llows: Unit No. Status Purchase Price 10E V $245,000 3A V $315,000 6A V $325,000 9E V $245,000 10C V $235,000 5E V $375,000 9. CORPORATION’S TRANSFER FEES On December 19, 2018, Shareholders of the Apartment Corp. by written consent of Shareholders owning more than 66-2/3 % of the outstanding shares, pursuant to paragraph 15(a)(iv) of the proprietary lease, adopted the following resolution: Paragraph 15(a)(iv) of the Proprietary Lease of the Apartment Corp. is deleted in its entirety and replaced with the following provision: (iv) All sums due from the Lessee shall have been paid to the Lessor, together with a sum to be fixed by the Directors to cover reasonable legal and other expenses of the Lessor and its Managing Agent, in connection with such assignment and transfer of shares. In addition to the foregoing fees to cover legal and other expenses of the Lessor

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connection with such assignment and transfer of shares, for contracts of sale or other transfer agreements executed on or after January 1, 2019, a transfer fee (the "Transfer Fee") in the amount of one percent (1%) of the gross sales price or consideration in connection with the assignment and transfer will be collected from the assignor/transferor. For purposes of this provision, the term "gross sales price" means the purchase price or consideration paid to the assignor/transferor by the assignee/transferee for the interest in the Lease and its appurtenant shares. Both the assignor/transferor and the assignee/transferee shall furnish to the Lessor prior to or at the time of the closing of the transfer a copy of the contract of sale for the transfer. The Transfer Fee is payable to the Lessor by bank or certified funds in advance or at the time and as a condition of such transfer and assignment. Notwithstanding the foregoing, the following assignments, transfers or sales sha