RealT Community Call Recap

EN CC 158 EN 02/07/2026 There have occasionally been points of friction with the receiver regarding the implementation of the original agreement. After several discussions, however, a new agreement was ultimately reached. In January, a hearing was held in which the City sought to place RealT into liquidation—a scenario that would have been the worst possible outcome for token holders. This was ultimately avoided through negotiations that led to the appointment of the receiver. As a result, the litigation with the City is currently on hold while the receiver carries out his duties. The receiver has now been in place for two months. His initial role has been to lay the groundwork necessary for operations to run efficiently. This startup phase is therefore relatively slow, but activity is expected to accelerate once the underlying processes are fully operational. Renovation work has now begun, correction orders are being addressed, and the first inspections are expected to start shortly. Despite this progress, a new development occurred. A few days ago, someone contacted the receiver to speak with him (JM mentioned UPMP). Under the court order, the receiver is authorized, in case of emergency, to pay himself directly from the income generated by RealT's properties. Following that conversation, he decided to exercise this option instead of accepting payment from the Jacobson brothers, stating that he had been told they were fraudsters and therefore did not wish to receive their money. This decision was announced on Tuesday. Yesterday, the Jacobson brothers attempted to negotiate with him in order to establish safeguards for the sale of the properties. The receiver now believes he needs to maintain a reserve of approximately $1 million. As a result, it is likely that he will begin by selling the most distressed and unstabilized properties, which would result in significant discounts compared with renovated assets. In response to this situation, RealT has decided to initiate a voluntary liquidation process, as well as the liquidation of its LLCs and INCs. NDPM no longer has a reason to exist despite the investments that have been made. Properties that already hold a Certificate of Compliance (CoC) will be transferred to another property manager pending their sale. There are still outstanding property taxes, substantial administrative expenses, and significant legal fees, all of which weigh on the various LLCs. The escrow account charges a 10% management fee. As for the receiver, his services have cost $178,000 over the past two months. Several Community Calls will be held over time to provide updates on the situation. The formal announcement of this process is expected within the next few days.