Financial Analysis

NOTE 10 MORTGAGE NOTES PAYABLE, NOTES PAYABLE AND DEBT GUARANTY Madison and PVT Notes Payable On February 26, 2021, Madison and PVT obtained mortgage loans from First Republic Bank in the amounts of $6,737,500 and $8,387,500, respectively, both at a fixed interest rate of 3% per annum through April 1, 2026. Effective May 1, 2026, interest rates are based on the average of the twelve most recently published yields on U.S. Treasury securities adjusted to a constant maturity of one year as published by the Federal Reserve System in the Statistical Release H.15 plus 2.75% per annum. The loans were obtained to finance the acquisition of Commodore Apartments and The Park View Apartments, which are located in Oakland, California. The loans mature on April 1, 2031 and are cross-collateralized by both properties owned by Madison and PVT. The loans require interest-only monthly payments through April 1, 2026, and beginning May 1, 2026, monthly payments of principal and interest are due based on a 360 month amortization period. The remaining unpaid principal balance is due at the maturity date. Accordingly, as of June 30, 2026, the outstanding balances of the loans were $6,725,997 for the Madison mortgage loan and $8,373,180 for the PVT mortgage loan. As of June 30, 2025, the outstanding balances of the loans were $6,737,500 for the Madison mortgage loan and $8,387,500 for the PVT mortgage loan. The mortgage notes payable balances are disclosed as a part of mortgage notes payable, net i …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes Improvements to Income Tax , to enhance the transparency and decision usefulness of income tax disclosures, primarily related to rate reconciliation and income taxes paid information. The amendment is effective for annual periods beginning after December 15, 2024, and should be applied on a prospective basis, with the option to apply retrospectively. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The adoption of these amendments did not have any impact on our consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses . The ASUs purpose is to improve the disclosures about a public business entitys expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development). This ASU is effective for the Companys annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this ASU on our consolidated financial statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 8 RELATED PARTY TRANSACTIONS Advisory Agreements Effective January 1, 2021: As discussed in Note 1, on January 26, 2021, our Board of Directors approved, effective January 1, 2021, two advisory agreements, an Advisory Management Agreement with the Real Estate Adviser and the Amended and Restated Investment Advisory Agreement with the Investment Adviser. The terms of the Advisory Management Agreement with the Real Estate Adviser , prior to its amendment effective January 1, 2026, provided that we would pay an Asset Management Fee based upon a percentage of invested capital (3% of the first $20 million, 2% of the next $80 million, and 1.50% over $100 million). Invested capital was equal to the amount calculated by multiplying the total number of outstanding shares of common stock, shares of preferred stock, and the partnership units (units in our operating partnership issued by us and held by persons other than us) issued by us by the price paid for each , or the value ascribed to each in connection with their issuance. The Advisory Management Agreement also provided for a 2.50% Acquisition Fee on new (non-security) purchases, subject to certain limitations designed to eliminate incentives to churn our assets , and for an incentive management fee equal to 15% of all distributions once shareholders had received cumulative distributions equal to 6% from the effective date of the Advisory Management Agreement. The Investment Adviser will receive an annual fee equal to $100 fo …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 16 SEGMENT REPORTING ASC 280, Segment Reporting (ASC 280), establishes standards for reporting financial and descriptive information about an enterprises reportable segments. We operate as two primary operating and reportable segments: (i) commercial and (ii) residential. These segments include activities related to acquiring, owning, developing, and managing income-producing real estate properties. Although our properties are geographically diversified throughout the United States, we do not distinguish or group our operations on a geographical basis for purposes of allocating resources or measuring performance. Our business is managed based on these two segments for internal reporting purposes. The investment committee led by the Chief Executive Officer serves as the CODM and evaluates performance and makes resource allocation decisions on this basis. The CODM evaluates operating performance primarily based on the Companys net income (loss). Effective January 1, 2026, the CODM began separately evaluating the performance of the Companys commercial real estate portfolio and residential real estate portfolio following the January 2026 portfolio reorganization and the formation of MAC. As a result, the Company changed its segment reporting structure and now presents two reportable segments: (i) commercial and (ii) residential. Prior period financial information has been recast to reflect this change in segment reporting. Expenses that are significant are the same as those …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 13 SHARE REPURCHASE PLAN On March 4, 2024, the Board of Directors suspended the common stock share repurchase program and common stock DRIP in connection with its pursuit of the listing of its common stock on a securities exchange. When our common stock became eligible for trading on OTC Markets in April 2024, the share repurchase program automatically terminated, and the Board of Directors will decide whether, and when, to reinstate the common stock DRIP . During the year ended June 30, 2026, we repurchased 92,836.06 shares of our Series A preferred stock, and 6,067.10 shares of our Series B preferred stock, at an aggregate cost of $2,452,977, under our previously-disclosed preferred stock share repurchase program as noted in the table below. These repurchases were settled through issuance of shares of the Companys common stock. F-39 We did not repurchase any shares of our common stock and Series C preferred stock during the year ended June 30, 2026. Period Total Number of Shares Repurchased Average Repurchase Price Per Share Total Repurchase Consideration During the year ended June 30, 2026 Series A Preferred stock September 1, 2025 through September 30, 2025 7,051.54 $ 22.80 $ 170,790 October 1, 2025 through December 31, 2025 17,242.35 24.89 429,276 January 1, 2026 through March 31, 2026 37,913.23 24.78 944,429 April 1, 2026 through June 30, 2026 30,628.94 24.63 757,020 92,836.06 $ 2,301,515 Series B Preferred stock November 1, 2025 through November 30, 2025 3,290.43 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 19 SUBSEQUENT EVENTS The Company has evaluated events and transactions occurring after June 30, 2026 , through the date these consolidated financial statements were issued for potential recognition or disclosure in the consolidated financial statements and identified the following material subsequent events. Additional Streeterville Secured Promissory Notes In addition to the promissory notes discussed in Note 10, on August 13, 2026, the Company issued the fifth secured promissory note (Note #5) to the Investor under the note purchase agreement in the aggregate principal amount of $547,500 which included an original issue discount of $45,000 and transaction expenses of $2,500. Note #5 matures on February 13, 2028. Proceeds from Note #5 were used to begin the purchase of approximately 130,000 shares of National Healthcare Properties, Inc. (NHP) for $7.27 per share of common stock in a tender offer, which stock automatically converts to Class A common stock on October 19, 2026, which has closed on the New York Stock Exchange in the range of $14.65 and $17.08 since June 30, 2026. Also on August 13, 2026, the Company issued a promissory note (Collateral Note) in the principal amount of $1,370,000, which included an original issue discount of $68,500 and transaction expenses of $1,500. The Collateral Note matures on October 30, 2026. The proceeds of the Collateral Note were used to provide collateral to support the short sale of 80,000 shares of NHP at an average price of $16 …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

NOTE 10 MORTGAGE NOTES PAYABLE, NOTES PAYABLE AND DEBT GUARANTY Madison and PVT Notes Payable On February 26, 2021, Madison and PVT obtained mortgage loans from First Republic Bank in the amounts of $6,737,500 and $8,387,500, respectively, both at a fixed interest rate of 3% per annum through April 1, 2026. Effective May 1, 2026, interest rates will be the average of the twelve most recently published yields on U.S. Treasury securities adjusted a constant maturity of one year as published by the Federal Reserve System in the Statistical Release H.15 plus 2.75% per annum. The loans were obtained to finance the acquisition of Commodore Apartments and The Park View Apartments, which are located in Oakland, California. The loans mature on April 1, 2031 and are cross-collateralized by both properties owned by Madison and PVT. The loan requires interest-only monthly payments through April 1, 2026, and beginning May 1, 2026, monthly payments of principal and interest are due based on 360 months of amortization period. The remaining unpaid principal balance is due at maturity date. Accordingly, as of both December 31, 2025 and June 30, 2025, the outstanding balances of the loans were $6,737,500 for the Madison mortgage loan and $8,387,500 for the PVT mortgage loan. The mortgage notes payable balances are disclosed as part of the mortgage notes payable, net in the consolidated balance sheets. The following table provides the projected principal payments on Madisons loan for the next f …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes Improvements to Income Tax , to enhance the transparency and decision usefulness of income tax disclosures, primarily related to rate reconciliation and income taxes paid information. The amendment is effective for annual periods beginning after December 15, 2024, and should be applied on a prospective basis, with the option to apply retrospectively. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The adoption of these amendments did not have any impact on our consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses . The ASUs purpose is to improve the disclosures about a public business entitys expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development). This ASU is effective for the Companys annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of this ASU on our consolidated financial statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 8 RELATED PARTY TRANSACTIONS Advisory Agreements Effective January 1, 2021: As discussed in Note 1, on January 26, 2021, our Board of Directors approved, effective January 1, 2021, two advisory agreements, an Advisory Management Agreement with the Real Estate Adviser and the Amended and Restated Investment Advisory Agreement with the Investment Adviser. The terms of the Advisory Management Agreement with the Real Estate Adviser provide that we will continue to pay an Asset Management Fee on essentially the same terms as we were paying the Investment Adviser prior to 2021, namely based upon a percentage of Invested Capital (3% of the first $20 million, 2% of the next $80 million, and 1.50% over $100 million). Invested Capital is equal to the amount calculated by multiplying the total number of outstanding shares of common stock, shares of preferred stock, and the partnership units (units in our operating partnership issued by us and held by persons other than us) issued by us by the price paid for each or the value ascribed to each in connection with their issuance. The Advisory Management Agreement also provides for a 2.50% Acquisition Fee on new (non-security) purchases, subject to certain limitations designed to eliminate incentives to churn our assets. The new Advisory Management Agreement also provides for an incentive management fee that is equal to 15% of all distributions once shareholders have received cumulative distributions equal to 6% from the effective date …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 16 SEGMENT REPORTING ASC 280, Segment Reporting (ASC 280), establishes standards for reporting financial and descriptive information about an enterprises reportable segments. We operate as a single reportable segment, income-producing real estate properties, which includes activities related to acquiring, owning, developing, and managing real estate investments. Although our properties are geographically diversified throughout the United States, we do not distinguish or group our operations on a geographical basis for purposes of allocating resources or measuring performance. Our business is managed as one segment for internal purposes. The investment committee led by the Chief Executive Officer serves as the CODM and evaluates performance and makes resource allocation decisions on this basis. The CODM evaluates operating performance primarily based on the Companys net income (loss). While our real estate portfolio could be categorized into residential and commercial properties, the CODM does not evaluate performance or allocate resources using these categories. Expenses that are significant are the same as those presented in our consolidated statements of operations. Additionally, the CODM reviews the asset information and capital expenditures on a consolidated basis that are the same as shown on the accompanying consolidated balance sheets and statements of cash flows. Our customers in the United States accounted for 100% of our revenues and we do not have any property …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 13 SHARE REPURCHASE PLAN On March 4, 2024, the Board of Directors suspended the common stock share repurchase program and common stock DRIP in connection with its pursuit of the listing of its common stock on a securities exchange. When our common stock became eligible for trading on OTC Markets in April 2024, the share repurchase program automatically terminated, and the Board of Directors will decide whether, and when, to reinstate the common stock DRIP . During the six months ended December 31, 2025, we did not repurchase any shares. During the six months ended December 31, 2024, we repurchased shares of our common stock through our Share Repurchase Program and through third-party auctions as noted in the below table. Period Total Number of Shares Repurchased Average Repurchase Price Per Share Total Repurchase Consideration During the six months ended December 31, 2024 Common stock December 1, 2024 through December 31, 2024 - $ - $ 21 * Series A Preferred stock September 1, 2024 through December 31, 2024 - $ - $ 5,530 ** * Cash in-lieu of fractional shares payout. ** Fees paid for redemption lockup agreements …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing