AmBase Corporation Reports $1.6 Million Net Loss, Faces Financial Challenges

AmBase Corporation reported a net loss of $1.6 million, or $0.02 per share, for the three months ended March 31, 2025, a slight improvement from a net loss of $1.8 million, or $0.05 per share, in the same period of the previous year. The company’s total operating expenses decreased to $1.5 million from $1.7 million year-over-year, primarily due to reduced professional and outside services costs, which fell to $1.1 million from $1.3 million. This reduction reflects a lower level of legal and professional fees associated with ongoing litigation related to the company’s investment in the 111 West 57th Property.

As of March 31, 2025, AmBase's total assets were reported at $200,000, all in cash and cash equivalents, while total liabilities stood at $5.9 million, resulting in a stockholders' deficit of $5.7 million. The company has faced ongoing financial challenges, leading to substantial doubt about its ability to continue as a going concern. Management indicated that existing cash may not be sufficient to cover operating needs for the next twelve months, necessitating potential capital raises or further borrowing.

In terms of strategic developments, AmBase completed a private placement offering on April 1, 2024, raising approximately $8.8 million through the sale of 44.2 million shares of common stock. This capital infusion is intended to support the company’s operations and ongoing litigation efforts. The company is also exploring additional litigation funding agreements to cover costs related to its legal disputes, which could provide up to $5 million in funding.

Operationally, AmBase continues to engage in litigation concerning its equity investment in the 111 West 57th Property, which has been a significant source of its financial strain. The company recorded a full impairment of $63.7 million for this investment in 2017, and ongoing disputes regarding the property have led to various legal proceedings. The company is actively pursuing options to recover its investment value, although the outcomes remain uncertain.

Looking ahead, AmBase's management is focused on managing cash flow and exploring avenues for additional funding. The company acknowledges the risks associated with its ongoing litigation and the potential impact on its financial condition. There are no assurances regarding the success of its claims or the ability to recover the value of its investments, which could materially affect its future prospects.