AmBase Corporation Reports Continued Operating Losses and Increased Expenses in Third Quarter and Nine Months Ended September 30, 2024

AmBase Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing continued operating losses and increased expenses compared to the previous fiscal period. For the three months ended September 30, 2024, total operating expenses rose to $1,523,000, up from $1,301,000 in the same period of 2023. For the nine months, operating expenses increased to $5,253,000 from $3,740,000 year-over-year.

The company recorded a net loss of $(1,533,000) for the third quarter of 2024, compared to a loss of $(1,399,000) in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss was $(5,307,000), an increase from $(3,888,000) in the prior year. The net loss per share for the third quarter was $(0.02), slightly improved from $(0.03) in 2023, while the nine-month loss per share decreased to $(0.08) from $(0.10).

Cash used in operating activities significantly increased, totaling $(8,205,000) for the nine months ended September 30, 2024, compared to $(2,174,000) in the same period of 2023. However, the company raised $8,840,000 through an equity offering completed on April 1, 2024, which contributed to a net change in cash and cash equivalents of $437,000 for the nine months, compared to a decrease of $(326,000) in the previous year.

As of September 30, 2024, AmBase's total assets were $515,000, consisting entirely of cash and cash equivalents, while total liabilities stood at $3,327,000, resulting in a stockholders' deficit of $2,812,000. The company has expressed substantial doubt about its ability to continue as a going concern due to ongoing operating losses and insufficient cash flow.

Strategically, AmBase is engaged in ongoing litigation related to its equity investment in the 111 West 57th Property, which has been a significant source of financial strain. The company recorded a full impairment of this investment in 2017, which previously represented a substantial portion of its assets. AmBase is exploring litigation funding agreements to cover legal costs and is considering options to recover the value of its investment, including potential sales of its interest in the property.

The company has also entered into loan agreements with related parties for working capital, and as of September 30, 2024, loans payable to BARC Investments LLC and Mr. R.A. Bianco were $2,000,000 and $1,000,000, respectively. The company has not made any stock repurchases in 2024 under its repurchase plan.