In February 2023, the Company and Mr. Richard A. Bianco, the Company's Chairman, President and Chief Executive Officer entered into a Senior Promissory Note for Mr. R. A. Bianco to provide a loan to the Company of $300,000 at an interest rate of 6.5% per annum, for working capital. The Promissory Note is due on the earlier of the date the Company receives funds from any source, sufficient to pay all amounts due under this this Note, including all accrued interest thereon, including without limitation, from a settlement of the 111 West 57th legal proceedings or February 28, 2025. AmBase and Richard A. Bianco further agreed that amounts due pursuant to the Promissory Note plus interest can be converted by Richard A. Bianco, at his option, into a litigation funding agreement pari-pasu with any litigation funding agreement entered into by the Company with a litigation funding entity.

As previously reported, in order to provide the necessary cash resources to continue operations and continue the litigation related to the 111 West 57th Street Property, the Company is currently considering and evaluating various strategic funding and/or financing alternatives in order to raise approximately $7 million in funding. Such funding that may be provided by a variety of sources, including but not limited to third parties, existing hareholders of the Company and/or Company management, and may take in the form of litigation funding agreements, equity securities, securities pursuant to Rule 506(c) of Regulation D under the Securities Act of 1933, as amended, debt securities, loans, or any combination thereof. Any sale of securities by the Company may not be offered or sold absent registration under the Securities Act of 1933, as amended, or an applicable exemption from such registration, which may include exemptions pursuant to Rule 506(b) or 506(c) of Regulation D under the Act.