Note 1  The Company and Basis of Presentation The accompanying condensed consolidated financial statements of AmBase Corporation and subsidiaries (AmBase or the Company) are unaudited and subject to year-end adjustments. All material intercompany transactions and balances have been eliminated. In the opinion of management, these financial statements reflect all adjustments, consisting only of normal recurring adjustments unless otherwise disclosed, necessary for a fair presentation of the Companys consolidated financial position, results of operations and cash flows. Results for interim periods are not necessarily indicative of results for the full year. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that it deems reasonable, that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates and assumptions. The unaudited interim condensed consolidated financial statements presented herein are condensed and should be read in conjunction with the Companys consolidated financial statements filed in its Annual Report on Form 10-K for the year ended December 31, 2018. The Company is engaged in the management of its assets and liabilities. At March 31, 2019, the Companys assets consisted primarily of cash and cash equivalents and tax assets. In January 2019, the Company filed its 2018 federal income tax return seeking a refund of alternative minimum tax (AMT) credit carryforwards as provided for in the 2017 Tax Cuts and Jobs Act (the 2017 Tax Act). This amount was reflected as a federal tax receivable at December 31, 2018. In March 2019, the Company received a federal tax refund based on the Companys 2018 federal income tax return as filed. The remaining AMT credit carryforward amounts are reflected as a deferred tax asset at March 31, 2019, based on tax returns to be filed in future years. For additional information see Note 7. In January 2018, the Company sold its commercial office building in Greenwich, Connecticut. For additional information, see Note 3. In June 2013, the Company purchased an equity interest in a real estate development property through a joint venture agreement to purchase and develop real property located at 105 through 111 West 57 th Street in New York, New York (the 111 West 57 th Property). The Company is engaged in material disputes and litigation with the sponsors of the joint venture (the Sponsor) and both mezzanine lenders to the joint venture (Apollo and Spruce). On August 30, 2017, Spruce issued a Notice of Retention of Pledged Collateral in Full Satisfaction of Indebtedness. By purporting to accept the pledged collateral, pursuant to a Strict Foreclosure process, Spruce claims to have completed the retention of the collateral pledged by the junior mezzanine borrower, and therefore, the Companys interest in the 111 West 57th Street Property (the Strict Foreclosure). Despite ongoing litigation challenging the legitimacy of the actions taken by the Sponsor and Spruce in connection with the Companys investment in the 111 West 57 th Property as further discussed herein, in accordance with GAAP, the Company recorded an impairment of its equity investment in the 111 West 57th Property in 2017. Prior to the Strict Foreclosure, the carrying value of the Companys equity investment in the 111 West 57 th Property represented a substantial portion of the Companys assets and net equity value. The Company is pursuing and will continue to pursue the recovery of its asset value from various sources of recovery; however, there can be no assurance that the Company will prevail with respect to any of its claims. While the Companys management is evaluating future courses of action to protect and/or recover the value of the Companys equity investment in the 111 West 57 th Property, the adverse developments make it uncertain as to whether any such courses of action will be successful. Any such efforts are likely to require sustained effort over a period of time, and require substantial additional financial resources. Inability to recover all or most of such value would in all likelihood have a material adverse effect on the Companys financial condition and future prospects. For additional information regarding the Companys recording of an impairment of its equity investment in the 111 West 57 th Property and the Companys legal proceedings relating to the 111 West 57 th Property, including the Companys challenge to the Strict Foreclosure, see Note 4 and Note 8. The Company has incurred operating losses and used cash for operating activities over the past several years. The Company has continued to keep operating expenses at a reduced level; however, there can be no assurance that the Companys current level of operating expenses will not increase or that other uses of cash will not be necessary. The Company believes that, based on its current level of operating expenses its existing cash and cash equivalents, will be sufficient to fund operating activities for at least the next twelve months from the financial statement issuance date. The Companys management expects that operating cash needs in 2019 will be met principally by the Companys current financial resources. Over the next several months, the Company will seek to manage its current level of cash and cash equivalents, including but not limited to reducing operating expenses and seeking recoveries from various sources, although this cannot be assured. In September 2017, the Company and Mr. Richard A. Bianco, the Companys Chairman, President and Chief Executive Officer (Mr. R. A. Bianco) entered into an agreement pursuant to which Mr. R. A. Bianco will fund the Companys litigation expenses in connection with the 111 West 57 th Property (the Litigation Funding Agreement). For additional information including the terms of the Litigation Funding Agreement, see Note 9.