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Organization and Nature of Business As a result of the factors described below, the Company has no meaningful revenue‐producing operations. Historically, the Company has operated an investment banking business, predominately fixed‐income sales and trading and financial advisory services, through three principal business units: Investment Banking, Diamond Star Investments, and Credit Products. The Company also engaged in residential mortgage lending operations through Family Funding, Inc. (“Family Funding”) until this business was discontinued, and the business sold to North Star Residential, Inc. (“North Star”), in February 20X3 (the “North Star Transaction”).

The Company has disclosed previously various uncertainties that had adversely impacted counterparty relationships, employee turnover, and operating results. Those factors impacted the overall stability of the Company. During the second quarter of 20X3, the Company's Board of Directors approved plans to discontinue operations in its Diamond Star Investments (including Western Financial Services [“Western“]) and Homeland Products divisions (together, “Fixed Income” or the “Fixed Income businesses”) as well as, later in the quarter, its Investment Banking division. Exiting these businesses impacted approximately 125 employees. As of December 14, 20X3, the Company had approximately 30 employees. Refer to Notes 20 and 21 herein for additional information.

The Company is evaluating several strategic alternatives in order to preserve and maximize stockholder value. These include:

 Pursuing a strategic transaction with a third party, such as a merger or sale of the Company;

 Reinvesting the Company's liquid assets in favorable opportunities; and

 Winding down the Company's remaining operations and distributing its net assets, after making appropriate reserves, to its stockholders.

The Company does not believe that discontinuing the businesses referenced above will have a significant near‐term impact on its liquidity. The Company's liquidity needs will depend to a large extent on decisions it makes regarding the alternatives described above and its future business operations, generally. The Company's available liquidity, which consists primarily of cash, is currently anticipated to be sufficient to meet its ongoing financial obligations for a reasonable period of time.