SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K


ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934


For the fiscal year ended            Commission File No.
     June 30, 19992001                        0-12895


ALL-STATE PROPERTIES L.P.
(Exact name of Registrant as specified in its charter)



          Delaware                              59-2399204
   (State or other jurisdiction or      (I.R.S. Employer
    incorporation or organization)       Identification No.)


Mailing address: P.O. Box 5524
                 Fort Lauderdale, FL 33310-5524

5500 N.W. 69th Avenue, Lauderhill, Florida        33319
  (Address of principal executive offices)       (Zip Code)

Registrant's Telephone number, including area code (954)
572-2113

Securities registered pursuant to Section 12(b) of the Act:

Title of Class     Name of Each Exchange on Which Registered
    None                         Not Applicable

Securities registered pursuant to Section 12(g) of the Act:

Title of Class

Limited partnership units

Indicate by check mark whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(D) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the issuer was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

                    YES X           NO


The aggregate market value of the limited partnership units
held by non-affiliates of Registrant is not ascertainable.
(See Page II-1)




PART I

ITEM 1.	BUSINESS

    (a)       General Development of Business

		  All-State Properties L.P. (a limited
partnership) (the Partnership) was organized under the
Revised Uniform Limited Partnership Act of Delaware on April
27, 1984 to conduct the business formerly carried on by a
predecessor corporation, All-State Properties, Inc. (the
Corporation). The terms Company and Registrant refer to the
Partnership or the Corporation or both of them as the
context requires. Pursuant to a Plan of Liquidation adopted
by shareholders of the Corporation on September 30, 1984,
the Corporation transferred substantially all of its assets
to the Partnership, and the Corporation distributed such
limited partnership interests to its shareholders.

	        Registrant's principal business has been land
development and the construction and sale of residential
housing in Broward County, Florida. However, it has
substantially completed its land development activities and
the sale of residential housing. Its present activities are:

		(i)   Through a 36.12% owned Florida limited
partnership,liability corporation, Tunicom LLC ("Tunicom")(formerly
known as Unicom Partnership Ltd.(Unicom)),Registrant iswas engaged in
the operation of an adult rental apartment project on 78.2
acres of land. (See Item 1(b)(1)(i)(a) and Note 2 to
financial statements.)

		(ii)   Through a 50% owned real estate joint venture, City
Planned Communities (CPC), owned 50% by the Company and 50%
by Newnel Partnership Registrant was engaged in the
development and sale of commercial and residential land.
(See Note 2 to financial statements.)

		(iii)  Through a 99% owned Florida limited
partnership, Wimbledon Development Ltd. (Wimbledon),
Registrant sold a condominium development. See Item
1(b)(1)(i)(c)(b).

	(b)(1)	NARRATIVE DESCRIPTION OF BUSINESS

		(i) (a)   Adult Rental Apartment Project

		In April, 1987, CPC sold approximately 78 acres
of land to UnicomTunicom for the purpose of constructing a 324-unit324-
unit adult apartment rental project on the land. Registrant
holds a 36.12% limited partnership interest in Unicom.Tunicom. (See
Note 2.) The general partner of Unicom was Sadkin Associates,
Inc., an affiliate of the late Herbert Sadkin, who died in
February, 1989. Following Mr. Sadkin's death, the limited
partners requested that Unicom retain Mr. Stanley Rosenthal,
the General Partner of Registrant, as manager. Currently,
all of Mr. Rosenthal's total compensation is considered
compensation as manager of Unicom. (See Items 11 and 13.)2 to financial statements)





I-2








		The project is adjacent to the Inverrary and
Woodlands Country Club communities in Broward County,
Florida, which are upper-income retirement developments. The
project consists of 80-one-bedroom, one-bath apartments of
approximately 800 square feet and 244 two-bedroom, two-bath
apartments of approximately 1,025 square feet. It includes a
29-acre lake and has dining and clubhouse facilities
containing an auditorium, a swimming pool, various craft
centers, a health club, game and club rooms, and a beauty
and barber shop.

		The project is designed to meet the special
needs of the elderly and includes features designed to
appeal to upper-income retirees. Primary emphasis is placed
on security with a well-designed entrance-exit monitoring
system, emergency alarm systems in apartments, a security
gate entrance and security fence as well as lever door
handles and handrails along halls and stairs, and includes
fire alarm systems and smoke detectors. Amenities include
built-in washers and dryers and balconies or terraces.







		The monthly rentals rangeranged from $2,700$2,800 per month
for the one-bedroom units to $3,200$3,100 per month for the two-
bedroom units, and includeincluded food service, maid service and
electricity. The facility iswas 98-percent leased and
occupied.

		The property iswas self-managed. A management fee
of 4% of total income iswas paid to the partners assuming the
managerial responsibility. The management arrangement was
approved by HUD. (See Item 11.)

		On July 28, 1995, Unicom Partnership Ltd.
(Unicom)Tunicom LLC. (Tunicom),
successfully concluded a reassignment and reinstatement of
its mortgage note in the amount of $27,638,955.87 from the
Department of Housing and Urban Development (HUD) to the
Government National Mortgage Association (GNMA). The
reinstated, reinsured mortgage will
maturematures on January 1, 2029.
It will bearbears interest at the rate of eight (8%) percent per
annum, which includes a 0.25% servicing fee. In addition,
Unicom will payTunicom paid one-half of one percent per annum mortgage
insurance premium.

		UnicomTunicom had accrued unpaid interest and other
liabilities related to the mortgage in a total amount of
$3,896,730. The total adjusted accrued interest and closing
costs paid at the closing equaled $1,502,183. This resulted
in a saving of $2,394,547, which saving will bewas amortized over
the remaining life of the mortgage. The saving resulted from
the difference between the accrual at the original note rate
and the borrowing rate charged by HUD.























I-3







		In order to accomplish the closing, the company borrowed
$1,547,125. Of this amount, $500,000 was borrowed
commercially (personally guaranteed by Mr. Rosenthal), to be
repaid in one (1) year out of surplus cash earned by the
company at an interest rate of two (2) percent over prime
(the loan was repaid in July, 1996); $1,047,125 was borrowed
from certain partners and other investors, to be repaid
after the above bank loan is repaid, also from surplus funds
at three (3%) percent over prime. In addition, because of
the disproportionate contribution by certain partners in
relationship to the other partners and because of new
investors, the group was awarded a 3.41% interest in
distributions from Unicom. All-State Properties L.P. did not
participate in the investment.

		On June 25, 1997, UnicomTunicom signed a Letter of
Intent with CareMatrix Corporation (AMEX) which Letter
became effective July 18, 1997. Prior to that date Unicom,Tunicom,
through its partners representing a majority interest in the
partnership (the Company abstaining) voted to approve the
transaction. The documents memorializing the transaction
were executed on August 13, 1997 with an effective date of
July 1, 1997, but dependent upon the completion of due
diligence and the payment of $4,500,000 to Unicom.Tunicom. On
September 24, 1997, CareMatrix made the required payment and
the initial phase of the transaction was completed. UnicomTunicom
used the proceeds for transaction costs ($325,000),
partnership obligations ($1,400,000), and distributed
$2,650,000 to certain partners to partially repay funds they
invested in Unicom.Tunicom.

		The $4,500,000 payment made by CareMatrix to
Unicom representsTunicom represented an option payment, in consideration for
which CareMatrix was granted the option to purchase the
facility in three years on June 30, 2000. The purchase price
will beis 8.75 times the net operating income before depreciation
for the year ended June 30, 2000, plus the then outstanding
mortgage balance and other adjustments, less the $4,500,000
option payment.

		In the interim, CareMatrix is leasingleased the facility,
retaining the sums of $518,700-the first year; $775,000-the
second year; and $875,000-the third year out of cash flow
each year, after payment of amounts due in connection with
the facility's mortgage insured by the U.S. Department of
Housing and Urban Development ("HUD").























The
balance of cash flow will be paid to Unicom as rent until
the net operating income equals $2,300,000 per year. Any
excess will then be divided equally between CareMatrix and
Unicom.I-4






		The present management team, will continue to
manage the facility for a period of five yearsuntil June 30, 2002 at the HUD-
approvedHUD-approved
rate of 4% of collections. The management team has been
approved by HUD under the name, SRR Management Corp.

		I-4







	CareMatrix chosePrior to prepay partthe closing, the Optionee assigned its
option to acquire Forest Trace. On August 16, 2000, the
transaction was consummated and closed with F.C. Forest
Trace L.L.C., the present owner. The purchase price was
$47,159,295, including the outstanding principal balance
plus accrued interest on the existing mortgage in the amount
of $26,720,254,which was satisfied at closing. After giving
effect to various adjustments, prorations and credits,
including the deposit of $4,500,000 previously accounted
for, the seller received net proceeds of $16,379,732. After
payment of a brokerage commission in the amount of $232,190
and bonuses in the amount of $200,000 to key employees of
Forest Trace, none of whom were employees of the management fee
every six monthsCompany,
$15,000,000 was distributed to partners. The remaining
balance of $947,542 was being held subject to true-up on
November 15, 2000 of net operating income from the facility
for the five-year term, intofour months ending October 31, 2000. The Company's
share of the $15,000,000 distribution was $4,665,012. (See
Item 7). Of the amount distributed to the Company, $769,038
was used to pay liabilities and $2,638,324 was used to pay
the Company's outstanding debentures together with accrued
interest thereon. The balance in the amount of $1,257,650
was retained by the Company, and together with its share of
the $947,542 being held, determined the amount of a
trustdistribution to be
paid monthly to SRR Management Corp., as set forth inthe unit owners of $.40 a consulting agreement. CareMatrix in turn is retaining
$400,000 per year out of facility cash flow, as a
reimbursement.unit on May 8,
2001.
	In a related transaction, the partners of
UnicomTunicom formed a new limited partnership called Newall
Assisted Living Ltd. ("Newall"), which entered into a joint
venture as a 50% partner with a company related to
CareMatrix. The new entity, Newall-Chancellor 69th Avenue
Associates, was formed to build a 120-unit assisted living
facility on 4.2 acres of land it will purchaseto be purchased from UnicomTunicom
at a price to be agreed upon. Chancellor has agreed to provide
all the necessary financing to erect and open the assisted
living facility.

	SRR Management Corp. will manage the facility for
five years at a fee equalThe CareMatrix entity has defaulted under its
obligations to the greater of $7,000 per month
or 3-1/2% of collections, to commence six months prior to
opening. The facility will be leased after completion to
CareMatrix of Lauderhill II, Inc. for an initial term of 15
years. As consideration for the lease, Newall will receive
50%Chancellor 69th Avenue Associates (the
"joint venture"). Newall Assisted Living Ltd., one of the
net cash flow fromtwo partners in the joint venture and the entity in which
the Company is a partner, is pursuing its rights under the
applicable Agreement while at the same time attempting to
find a different partner with which to develop and operate
the assisted living facility.
The joint venture has agreed to pay $40,000 plus 5% of the
development cost to CareMatrix, and $5,000 per month to the
general partner of the company for his services during the
approval period and construction. The above sums are to be
paid from construction loan draws.

	Chancellor has agreed to purchase the facility
from the joint venture at the later of 27 months from
commencement of the lease or June 30, 2002, at 8.75 times
net operating income before depreciation for the twelve
months prior to the purchase, plus the then outstanding
mortgage balance.

	The majority of the partners of Newall, the
Company abstaining, voted to award 5% of the venture to the
general partner of the Company for his services and 2% to
others.

	Three homeowners living near the proposed
assisted living facility site commenced an action against
Unicom and the City of Lauderhill, seeking to prevent
construction of the assisted living facility at that
location. The court granted summary judgment in favor of
Unicom and the City, dismissing the action. The homeowners
appealed, and the Appellate Court affirmed the decision of
the Lower Court per curiam.




I-5




		(i) (b)   Condominium Units


	In November, 1986, Registrant formed Wimbledon
Development Ltd., a Florida Limitedlimited partnership, for the
purpose of constructing up to 48 units on six acres of land
remaining from a condominium project known as Wimbledon
constructed by Registrant during the period 1971-1978. The
condominium project could be comprised of six two-story
buildings of  eight units  each.land.
Two such buildings on two acres of land were completed and all
sixteen (16) units have
been sold. Mortgages totaling $270,974 on the two buildingsThe remaining four acres were in default and were purchased for and reduced to
$125,000. (See Note 10.)sold.

	In June 1999, control of the condominium
association was turned over to the unit owners by Wimbledon
Development Ltd., the developer. All required funds for
reserves and deferred maintenance were delivered to the new
condominium board. Wimbledon Development Ltd., its general
partner and the Registrant, its limited partner, were issued
releases with respect to all matters pertaining to the
condominium. Wimbledon owed $135,000 in recreational
assessments to the operating association. By agreement, the
delinquency would be paid out of proceeds from the sale of
the remaining four acres of land, together with 50% of any
profit realized. The property was sold on September 17,
1996, and the obligation was satisfied by a payment of
$137,035 to the association. (See Note 10.)Item 3, Legal Proceedings)

		(ii)  Registrant has no plans for any new
products.

		(iii)  Registrant purchased building materials
which are available from many sources.

		(iv)    Registrant holds no patents, trademarks,
etc.

		(v)  	No part of Registrant's business is
subject to significant seasonal variation.

		(vi)	Registrant's only present source of
working capital is the cash distributions made to it by
Unicom. Cash distributions from Unicom which may be received
in the future will be available for working capital and
distribution to investors and limited partners. (See Note
2.)Tunicom.

		(vii) The apartment rental market is not
dependent upon a single or a few customers, but instead
relies on a wide customer base. The UnicomTunicom units are
expected to bewere
rented to upper income retirees.


















I-6






		(viii)	No portion of Registrant's business
involved government contracts.

I-6

		(ix)  The adult rental apartment market in South
Florida is highly competitive. Martinez & Associates,
consultants retained by UnicomTunicom and specializing in housing
for the elderly, identified nine facilities in the Fort
Lauderdale area as being competitive with the UnicomTunicom
complex. However, the UnicomTunicom project offersoffered larger units
and makesmade available more two-bedroom units than its
competitors.

         	(x)	Registrant incurs no research and
development expenses.

		(xi)	In the development and sale of their
properties, Registrant, UnicomTunicom and Wimbledon are required
to comply with applicable zoning and environmental
regulations. It is believed that the compliance with
environmental regulations will have no material effect upon
capital expenditures, earnings or competitive position of
Registrant in future periods.

		(xii)	Registrant (including Wimbledon) employs
two part-time people. Unicom employsTunicom employed 87 people full time
and 43 people part time, engaged in the operation of the
retirement facility.

	(d)	Unicom hasTunicom had no foreign operations or export
sales.

ITEM 2.	PROPERTIES

		At June 30, 1999 Unicom held 78 acres on which
it completed the construction of a 324 unit adult rental
apartment project. See item 1(b)(1)(i)(a).


		The Company hashad outstanding 4% subordinated
convertible debentures that became due September 30, 1989
(the Debentures) in the aggregate principal amount of
$1,627,112. Accrued interest thereon aggregated $936,321 at
June 30, 1999.1989.
The payment of the interest and principal on the Debentures
iswas subordinate to payment of certain senior debt which
remainsremained outstanding. Consequently, the Registrant hashad been
prohibited from paying the Debentures since maturity. Nonetheless,On
August 23, 2000, the Registrant believes that its
assets are sufficient eventually to satisfy the senior
indebtednessDebentures and pay the principal ofaccrued interest thereon
were paid. (See Notes 5 and accumulated
interest on the Debentures.12)













I-7






ITEM 3.	LEGAL PROCEEDINGS

	AThe limited partnership in which the Company is
the limited partner has beenwas named as a defendant in a
lawsuit seeking all damages allowable under the
Florida Wrongful Death Act. On or about April 17, 1998, one ofA motion to dismiss
the decedentslimited partnership was operating a motor vehicle in the parking lot
of a condominium developedfiled and granted by
the defendantcircuit court judge.  Plaintiffs appealed the
order dismissing the limited partnership when she drove said vehicle intoin this
litigation.  In March 2001, the appellate court
affirmed the lower court's final order of
dismissal with prejudice.  As a canal
abutting but not part ofresult, the
condominium property. The other
decedent wasplaintiffs no longer have a passenger in said vehicle.

I-7








		The Company does not believe it has any
liability, and counsel selected by its insurance carrier is
representingcase again Wimbledon
Development Ltd., the limited partnership.



ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY
           HOLDERS

		No matters were submitted to a vote of security
holders of Registrant during the fourth quarter of the
fiscal year covered by this report.































I-8



PART II


ITEM 5.   MARKET FOR THE REGISTRANT'S COMMON EQUITY AND
	 RELATED SECURITY HOLDER MATTERS

	(a)	In June, 1988, Registrant advised its unit
holders that in order to avoid classification as a publicly
traded limited partnership under the Internal Revenue Code,
it would facilitate the transfer of units privately
commencing July 1, 1988.

	There were no trades made through the
Registrant's matching service for the years ended June 30,
1993 through June 30, 1999.2001. The Company has no knowledge of
other transactions. Therefore, no bid and asked prices could
be ascertained.

	(b)	As of SeptemberJune 30 1999,2001, there were 1,2181,227 holders
of record of 2,834,8562,853,757 limited partnership interests,
excluding individual participants in security nominee or
street names.

		Pursuant to the Plan of Liquidation and
Dissolution of All-State Properties, Inc. and the Limited
Partnership Agreement of All-State Properties L.P. upon the
dissolution of the Corporation, stockholders automatically
received one unit of partnership interest for each share of
stock held and became record holders of limited partnership
units. However, until the stockholders submitted their stock
certificates for exchange and had taken other necessary
steps, they would not become limited partners.

		As of SeptemberJune 30, 1999, 1,5602001, 1,523 of the 2,7782,750
record holders of limited partnership interests holding
283,209264,308 units had not submitted their stock certificates for
exchange.

	(c)(d)	The Company never paid cash dividends on its
common stock while it was a corporation. The Partnership
declared cash distributions cumulatively totaling $0.85 per
unit through August 31, 1989.



















II-11989 and distributed $.40 per unit
on May 8, 2001.














II-



ALL-STATE PROPERTIES L.P
(A LIMITED PARTNERSHIP) (NOTE 1A)
SELECTED FINANCIAL DATA
AS OF AND FOR THE YEARS ENDED JUNE 30
UNAUDITED
SELECTED CASH FLOW AND AND OPERATING STATEMENT DATA 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 1 9 9 6 1 9 9 5 REVENUE: Equity in net earnings (loss) of real estate partnerships $ 6,872,555 $ 683 $ (23,295) $ (34,380) $ (82,532) $ (76,228) $ (127,122) Other income 59,564 6,082 7,364 49,763 328,171 99,341 36,396 Total $ 6,932,119 $ 6,765 $ (15,931) $ 15,383 $ 245,639 $ 23,113 $ (90,726) Income (loss) before Extraordinary Items $ 6,843,331 $ (174,197) $ (235,948) $ (151,977)$ (141,963) $ (330,087) $ (294,903) Net Income (Loss) $ 6,843,331 $ (174,197)$ (235,948) $ (151,977)$ (141,963) $ (330,087) $ (294,903) Per Share/Unit - fully diluted: Net income (loss) be- fore Extraordinary Items $ (.08)2.19 $ (.05) $ (.05) $ (.10) $ (.09) Net Income (Loss) $ (.08) $ (.05) $ (.05) Net Income (Loss) $ (.10)2.19 $ (.09)(.05) $ (.08) $ (.05) $ (.05) SELECTED BALANCE SHEET DATA Total Assets $ 658,146 $ 6,526 $ 21,635 $ 6,993 $ 28,806 $ 222,911 $ 375,421 Notes, mortgages and con- struction loans $ - $ 612,077 $ 573,225 $ 430,600 $ 427,117 $ 452,595 $ 450,041 4% convertible debentures, due 1989 including accrued interest $ - $2,628,518 $ 2,563,433 $ 2,498,349 $ 2,433,265 2,368,181 2,303,097 Total $ 658,146 $ 3,240,595 $ 3,136,658 $2,928,949$ 2,928,949 $ 2,860,382 $ 2,820,776 $ 2,753,138 Cash Dividends Declared Per Share/Unit $ NONE0.40 $ NONE $ NONE $ NONE $ NONE
See notes to financial statements. II-2 CITY PLANNED COMMUNITIES, (A PARTNERSHIP) AND UNICOMTUNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) SELECTED FINANCIAL DATA AS OF AND FOR THE YEARS ENDED JUNE 30 UNAUDITED
SELECTED INCOME STATEMENT DATA 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 1 9 9 6 1 9 9 5 Sales and rental of real estate $ 21,705,571 $ - $ - $ - $ 10,449,562 $ 10,186,182 $ 9,874,474 Lease Income - 5,744,412 5,352,291 4,755,196 - - - Interest and other income 2,226,737 13,832 18,818 114,134 90,035 74,341 75,179 Total Revenues $ 23,982,795 $ 5,758,244 $ 5,371,109 $ 4,869,330 $ 10,539,597 $ 10,260,523 $ 9,049,653 Net Income(Loss) Before Extra- ordinary ItemItems $ 22,636,326 $ 419,267 $ 307,173 $ 140,884 $ 450,995 $ 224,775 $ (589,551) Net Income(Loss) $ 22,636,326 $ 419,267 $ 307,173 $ 140,884 $ 450,995 $ 224,775 $ (589,551) SELECTED BALANCE SHEET DATA Total Assets $ 763,142 $ 30,119,840 $ 30,597,154 $ 30,948,582 $ 31,006,067 $ 31,866,913 $ 31,567,368 Partners' Cash Distributions $ 16,417,256 $ 848,936 $ 1,572,000 $ NONE $ NONE $ NONE5,001,156 $ NONE NOTE: Information shown is from the combined financial statements of City Planned Communities and Unicom Partnership Ltd.Tunicom LLC.
See notes to combined financial statement. II-3 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS - ALL STATEALL-STATE PROPERTIES L.P. YEAR ENDED JUNE 30, 19992001 COMPARED TO YEAR ENDED JUNE 30, 19982000 FINANCIAL CONDITION Registrant's sourceThe net income for the year ended June 30, 2001 increased due to the sale of working capital consistsits partnership asset as explained in Note 12 to the financial statements. Expenses likewise decreased as a result of cash received from borrowings and loans received from Unicom.liabilities being paid. In consideration of cash advances made and services rendered by certain individuals to Unicom, UnicomTunicom, Tunicom agreed to distribute 26.76%,(including 5% to the general partner of the Company) of any of its cash that becomes available for distribution to those individuals. The balance of any cash that became available for distribution up to $13,351,210 would be distributed to the Company and Newnel Partnership for the benefit of CPC. After $13,351,210 was disbursed, remaining cash would be distributed 26.76% to the aforementioned individuals and the remainder as follows: 1.34% to F. Trace, Inc., the former general partner of UnicomTunicom 49.33% to Newnel Partnership 3.60% to certain individuals who made cash advances to UnicomTunicom on behalf of the company 45.73% to the Company 100.00% Subsequently, of the holders of the 26.76%, individuals receiving 23.27% were admitted as limited partners of Unicom,Tunicom, with the 3.49% remaining as non-partner distributees. Restating the above to reflect the admission of the aforesaid individuals as limited partners, the cash flow available for distribution after the payment of the $13,351,210 will be distributed as follows: 3.49% to the non-partner distributees As to the partners: 1.00% to F. Trace, Inc., the former general partner of UnicomTunicom 23.27% to the newly admitted limited partners 36.12% to Newnel Partnership 36.12% to the Company (including 3.60% given to certain individuals who made cash advances to UnicomTunicom on behalf of the Company) 100.00% II-4 The amount of the distribution to be received by the Company is the same under both of the above calculations. II-4 In addition, CPC assigned 9.00% of any of its cash that becomes available for distribution to certain individuals for funds advanced by them to CPC. Certain individuals advanced funds to the Company. In consideration of those advances, the Company assigned to those individuals 10.23% of distributions received by it from CPC, after deducting the amounts necessary to repay the funds advanced by them. RESULTS OF OPERATIONS Revenues Revenues decreased by 20% for the year ended June 30, 1999 as compared to 1998 as a result of the sale of land and condominium units in 1998. Costs and Expenses The total costs and expenses for the year ended June 30, 1999 increased by 33% due to the turnover of the Wimbledon Condo to the unit owners (Item 1(b)(i)(I)(b) Net Loss Net loss was increased by 60%. See Note 12 to the financial statements relative to a recent lease and option agreement entered into by Unicom Partnership Ltd. II-5 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS - - ALL STATEALL-STATE PROPERTIES L.P. YEAR ENDED JUNE 30, 19982000 COMPARED TO YEAR ENDED JUNE 30, 19971999 FINANCIAL CONDITION Registrant's source of working capital consists of cash received from borrowings and loans received from its 50% joint venture, CPC. No cash was available for distribution during the year ended June 30, 1998.Tunicom. In consideration of cash advances made and services rendered by certain individuals to Unicom, UnicomTunicom, Tunicom agreed to distribute 26.76% (including 5% to the general partner of the Company) of any of its cash that becomes available for distribution to those individuals. The balance of any cash that became available for distribution up to $13,351,210 would be distributed to the Company and Newnel Partnership for the benefit of CPC. After $13,351,210 was disbursed, remaining cash would be distributed 26.76% to the aforementioned individuals and the remainder as follows: 1.34% to F. Trace, Inc., the former general partner of UnicomTunicom 49.33% to Newnel Partnership 3.60% to certain individuals who made cash advances to UnicomTunicom on behalf of the Company 45.73% to the Company 100.00% Subsequently, of the holders of the 26.76%, individuals receiving 23.27% were admitted as limited partners of Unicom,Tunicom, with the 3.49% remaining as non-partner distributees. Restating the above to reflect the admission of the aforesaid individuals as limited partners, the cash flow available for distribution after the payment of the $13,351,210 will be distributed as follows: 3.49% to the non-partner distributees As to the partners: 1.00% to FF. Trace, Inc., the former general partner of UnicomTunicom 23.27% to the newly admitted limited partners 36.12% to Newnel Partnership 36.12% to the Company (including 3.60% given to certain individuals who made cash advances to UnicomTunicom on behalf of the CompanyCompany) 100.00% II-6 The amount of the distribution to be received by the Company is the same under both of the above calculations. II-6 In addition, CPC assigned 9.00% of any of its cash that becomes available for distribution to certain individuals for funds advanced by them to CPC. Certain individuals advanced funds to the Company. In consideration of those advances, the Company assigned to those individuals 10.23% of distributions received by it from CPC, after deducting the amounts necessary to repay the funds advanced by them. RESULTS OF OPERATIONS REVENUES Revenues decreasedincreased by 94%150% for the year ended June 30, 19982000 as compared to 19971999 as a result of the sale of land and condominium units in 1997.income from partnership. COSTS AND EXPENSES The total costs and expenses for the year ended June 30, 199862000 decreased by 57%20%. Net Loss Net loss was decreased by 8%26%. SUBSEQUENT EVENTS See Note 12 to the financial statements relative to a recent lease and option agreement entered into by Unicom Partnership Ltd.Tunicom LLC. II-7 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CITY PLANNED COMMUNITIES AND UNICOMTUNICOM PARTNERSHIP LTD. YEAR ENDED JUNE 30, 19992001 COMPARED TO YEAR ENDED JUNE 30, 19982000 The net income for the year ended June 30, 19992001 as compared to 1998 was the same.year ended June 30, 2000 reflects the sale of assets as described in Note 8 to the financial statements. In consideration of cash advances made and services rendered by certain individuals to Unicom, UnicomTunicom, Tunicom agreed to distribute 26.76% (including 5% to the general partner of the Company) of any of its cash that becomes available for distribution to those individuals. The balance of any cash that becomes available for distribution up to $13,351,210 would be distributed to the Company and Newnel Partnership for the benefit of CPC. After $13,351,210 was disbursed, remaining cash would be distributed 26.76% to the aforementioned individuals and the remainder as follows: 1.34% to F. Trace, Inc., the former general partner of UnicomTunicom 49.33% to Newnel Partnership 3.60% to certain individuals who made cash advances to UnicomTunicom on behalf of the Company 45.73% to the Company 100.00% Subsequently, of the holders of the 26.76%, individuals receiving 23.27% were admitted as limited partners of Unicom,Tunicom, with the 3.49% remaining as non-partner distributees. Restating the above to reflect the admission of the aforesaid individuals as limited partners, the cash flow available for distribution after the payment of the $13,351,210 will be distributed as follows: 3.49% to the non-partner distributees As to the partners: 1.00% to F. Trace, Inc., the former general partner of UnicomTunicom 23.27% to the newly admitted limited partners 36.12% to Newnel Partnership 36.12% to the Company (including 3.60% given to certain individuals who made cash advances to UnicomTunicom on behalf of the Company) 100.00% II-8 The amount of the distribution to be received by the Company is the same under both of the above calculations. In addition, CPC assigned 9.00% of any of its cash that becomes available for distribution to certain individuals for funds advanced by them to CPC. Certain individuals advanced funds to the Company. In consideration of those advances, the Company assigned to those individuals 10.23% of distributions received by it from CPC, after deducting the amounts necessary to repay the funds advanced by them. II-9 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CITY PLANNED COMMUNITIES AND UNICOMTUNICOM PARTNERSHIP LTD. YEAR ENDED JUNE 30, 19982000 COMPARED TO YEAR ENDED JUNE 30, 19971999 The net income for the year ended June 30, 19982000 as compared to 1997 decreased by 69% as a result of1999 was the payments to the lessee (see Note 8 to financial statement.)same. In consideration of cash advances made and services rendered by certain individuals to Unicom, UnicomTunicom, Tunicom agreed to distribute 26.76% (including 5% to the general partner of the Company) of any of its cash that becomes available for distribution to those individuals. The balance of any cash that became available for distribution up to $13,351,210 would be distributed to the Company and Newnel Partnership for the benefit of CPC. After $13,351,210 was disbursed, remaining cash would be distributed 26.76% to the aforementioned individuals and the remainder as follows: 1.34% to F. Trace, Inc., the former general partner of UnicomTunicom 49.33% to Newnel Partnership 3.60% to certain individuals who made cash advances to UnicomTunicom on behalf of the Company 45.73% to the Company 100.00% Subsequently, of the holders of the 26.76%, individuals receiving 23.27% were admitted as limited partners of Unicom,Tunicom, with the 3.49% remaining as non-partner distributees. Restating the above to reflect the admission of the aforesaid individuals as limited partners, the cash flow available for distribution after the payment of the $13,351,210 will be distributed as follows: 3.49% to the non-partner distributees As to the partners: 1.00% to F. Trace, Inc., the former general partner of UnicomTunicom 23.27% to the newly admitted limited partners 36.12% to Newnel Partnership 36.12% to the Company (including 3.60% given to certain individuals who made cash advances to UnicomTunicom on behalf of the CompanyCompany) 100.00% II-10 The amount of the distribution to be received by the Company is the same under both of the above calculations. In addition, CPC assigned 9.00% of any of its cash that becomes available for distribution to certain individuals for funds advanced by them to CPC. Certain individuals advanced funds to the Company. In consideration of those advances, the Company assigned to those individuals 10.23% of distributions received by it from CPC, after deducting the amounts necessary to repay the funds advanced by them. Revenues increased by 8% for the fiscal year ended June 30, 2000 as compared to the fiscal year ended June 30, 1999. Expenses increase by 20% for the fiscal year ended June 30, 2000 compared to June 30, 1999. Net Income increased by 3% for the final year ended June 30, 2000 compared to June 30, 1999. II-11 ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA `ALL-STATE PROPERTIES L.P. P O BOX 5524 Fort Lauderdale, FL 33310-5524 Telephone (954) 572-2113 Fax (954) 749-5664 The accompanying balance sheets of All-State Properties L.P. (a limited partnership) (Note 1A) as of June 30, 1999 and the related statements of operations, changes in partners' capital (deficit) and cash flow for the year then ended and the schedule and exhibit listed in the index have been compiled in accordance with standards established by the American Institute of Certified Public Accountants. The accompanying financial statements have not been audited by independent public accountants and no accountant has expressed an opinion thereon. They have been prepared by the Registrant assuming that All-State Properties L.P. (a limited partnership) (Note 1A) will continue as a going concern. As explained in Note 11 to the financial statements, at June 30, 1999, conditions exist which indicate that the partnership is unable to generate sufficient cash flow to meet its obligations. The financial statements do not include any adjustments or reclassifications that might result from the outcome of these uncertainties. No auditing procedures have been performed since September, 1989. The Registrant's cash flow is insufficient for the Registrant to compensate accountants for past or present services. The Registrant intends to obtain audited financial statements for the 1990-1999 periods as soon as it is in a financial position to compensate an accountant for such services. Very truly yours, ALL-STATE PROPERTIES L.P. By: STANLEY R. ROSENTHAL General Partner II-12 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP)(NOTE 1A) YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED I N D E X PAGE Partnership's Letter II-12Independent Auditor's Report II-13 FINANCIAL STATEMENTS: Balance Sheets II-14 Statements of Operations II-15 Statements of Changes in Partners' Capital (Deficit) II-16 Statements of Cash Flows II-17/18 Notes to Financial Statements II-19/29 SUPPLEMENTAL INFORMATION: Exhibits indicating the Computation of Earnings per Unit IV-6 Schedule X - Supplemental Income Statement Information Charged to Cost and Expenses IV-5 Selected Financial Data II-2 II-12 FREEMAN, BUCZYNER & GERO ONE SOUTHEAST THIRD AVENUE SUITE 2120 MIAMI, FLORIDA 33131 305-375-0766 INDEPENDENT AUDITOR'S REPORT To the Partners All-State Properties, L.P. Lauderhill, Florida We have audited the accompanying balance sheets of All-State Properties L.P. as of June 30, 2001, and 2000 and the related statements of operations, partners' capital and cash flows for each of the three years in the period ended June 30, 2001. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of All-State Properties L.P. at June 30, 2001 and 2000 and the results of its operations and its cash flows for each of three years in the period ended June 30, 2001 in conformity with generally accepted accounting principles. October 10, 2001 II-13 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) BALANCE SHEETS JUNE 30, 19992001 AND 1998 (UNAUDITED)2000 (AUDITED) A S S E T S JUNE 30 2 0 0 1 9 9 9 1 9 9 82 0 0 0 Cash $ 20,425402,042 $ 4,0375,316 Other Assets $ 1,210 $ 2,9561,210 Undistributed earnings in partnerships (Notes 1, 2 and 12) 254,894 - Total AssetsAsset $ 21,635 $ 6,993658,146 6,526 LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) LIABILITIES: Notes payable (Notes 4 $ - 612,077 and 8) $ 573,225 $ 430,600 4% convertible subordinated debentures (Notes 5 8 and 11) 2,563,433 2,498,3498) - 2,628,518 Partnership distributions payable (Note 9) 252,496314,451 252,496 Notes payable - related party (Note 2) 194,805 166,749- 225,116 Accounts payable and other liabilities (Note 7) 30,474 33,41312,039 43,319 $ 3,614,433326,490 $ 3,381,6073,761,526 DEFICIENCY IN PARTNERSHIPS: Undistributed earnings (loss) of partnerships (Notes 1C, 1D, 2,42 and 11)4) $ 1,015,561- $ 992,2661,033,229 COMMITMENTS AND CONTINGENCIES (Notes 2,11,12,2,11 and 13)12) $ - $ - PARTNERS' CAPITAL (DEFICIT): Partners' capital (deficit) (3,772,419 units authorized, 3,118,065 units outstanding) (Notes 4, 6 and 9) $ (4,383,983)515,299 $ (4,148,035(4,558,180) Notes receivable-officers/partners including accrued interest of $78,988$90,191 in 19982000 1 and $73,416$84,518 in 19971999 (Note 3) (224,376) (218,845)(183,643) (230,049) $ (4,608,359)331,656 $ (4,366,880)(4,788,229) TOTAL LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) $ 21,635658,146 $ 6,9936,526 See notes to financial statements. II-14 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) STATEMENTS OF OPERATIONS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 REVENUES (Note 10): LossIncome (loss) from real estate partnership (Note 2) $ (23,295)6,872,555 $ (34,380)683 $ (82,532)(23,295) Interest and dividend income (Note 3) 59,564 6,082 7,364 9,448 11,971 Other - 26,815 5,300 Sale of land and condominium units - 13,500 310,900$ 6,932,119 $ 6,765 $ (15,931) $ 15,383 $ 245,639 COST AND EXPENSES: Selling, general and administrative expenses(Note 1E) $ 99,93770,128 $ 31,44146,270 $ 86,37099,937 Interest (Notes 1E, 4 and 5) 18,660 134,692 120,080 119,529 100,838 Cost of land and condominiums sold - 16,390 200,394 Total $ 88,788 $ 180,962 $ 220,017 NET INCOME (LOSS) $ 167,3606,843,331 $ 387,602 NET LOSS(174,197) $ (235,948) $ (151,977) $ (141,963) NET INCOME OR (LOSS) PER PARTNERSHIP UNIT (Note 1F) $ (0.08)2.19 $ (0.05) $ (0.05)(0.08) CASH DISTRIBUTIONS PER UNIT $ NONE0.40 $ NONE $ NONE See notes to financial statements. II-15 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED
NOTES TOTAL RECEIVABLE PARTNERS NUMBER GENERAL LIMITED OFFICERS/ CAPITAL OF UNITS PARTNER PARTNERS PARTNERS (DEFICIT) BALANCE - June 30, 1996 3,118,065 $ 2 $ (3,854,095) $ (207,679) $(4,061,774) Net loss - - (141,963) - (141,963) Net increase in notes receivable- partners - - - (5,594) (5,594) BALANCE - June 30, 1997 3,118,065 $ 2 $ (3,996,058) $ (213,273) $ (4,209,331) Net loss - - (151,977) - (151,977) Net increase in notes receivable- partners - - - (5,572) (5,572) BALANCE - June 30, 1998 3,118,065 $ 2 $ (4,148,035) $ (218,845) $ (4,366,880) Net loss - - (235,948) - (235,948) Net increase in notes receivable- partners - - - (5,531) -(5,531) BALANCE - June 30, 1999 3,118,065 $ 2 $ (4,383,983) $ (224,376) $ (4,602,828)(4,608,359) Net loss - - (174,197) - (174,197) Net increase in notes receivable- partners - - - (5,673) (5,673) BALANCE - June 30, 2000 3,118,065 $ 2 $ (4,558,180) $ (230,049) $ (4,788,229) Net income - - 6,843,331 - 6,843,331 Net decrease in notes receivable- partners - - - $ 46,406 46,406 Partners distributions - - (1,769,852) - (1,769,852) BALANCE - June 30, 2001 3,118,065 $ 2 $ 515,299 $ (183,643) $ 331,656
See notes to financial statements. II-16 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED YEARS ENDED JUNE 30, 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Note 1G) Cash Flows from Operating Activities: Cash received principally from rental activities and sale of condominiums $ - $ 9,051- $ 310,900- Interest and dividends and other income received 105,970 1,079 1,833 48,828 6,086 Cash paid for selling, general and administrative expenses (101,408) (33,425) (101,130) (61,349) (256,409) Interest paid (1,187,175) (42,710) (12,457) (94,051) (7,937) Net Cash (Used) Provided by Operating Activities (1,182,613) $ (75,056) $ (111,754) $ (97,521) $ 52,640 Cash Flows from Financing Activities: (Payment) ProceedsProceeds(payment) from notes payable - net (508,461) 24,359 $ 113,044 $ 45,461 $ (40,925) Proceeds (payments) on note-related party - net (145,537) 17,237 15,098 42,665Payment of Debentures (1,643,198) - - Net Cash Provided (Used) by Financing Activities $ (2,297,196)$ 41,596 $ 128,142 $ 88,126 $ (40,925)Cash Flows from Investing Activities: Distribution to partners (1,707,897) - - Distribution from partner- ship 5,584,432 18,351 - Net Cash Provided (Used) by Investing Activities 3,876,535 18,351 - See notes to financial statements. II-17 (1 of 2) ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 AUDITED 2 0 0 1 2 0 0 0 1 9 9 9 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 16,388396,726 $ (9,395)(15,109) $ 11,71516,388 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 5,316 20,425 4,037 13,432 1,717 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 20,425402,042 $ 4,0375,316 $ 13,43220,425 See notes to financial statements.statements II-17 (2 of 2) ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) STATEMENTS OF CASH FLOWS (CONTINUED) YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED YEARS ENDED JUNE 30, 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 Reconciliation of net (loss)income(loss) to net cash (used) provided by operating activities: Net Income (Loss) $ (235,948)6,843,331 $ (151,977)(174,197) $ (141,963)(235,948) Adjustments to reconcile net (loss) to net cash (used) provided by operating activities: Cost of real estate sold $ - $ 12,000 $ 205,036(Profit) Loss from real estate partnership (6,872,555) (683) 23,295 34,380 82,532 Changes in assets and liabilities: Increase (Decrease) in accrued interest - notes payable (29,581) (41,978) 15,447(103,616) 14,493 29,581 Increase (Decrease)in accrued interest - relatedinterest-related party notes (net) (79,579) 13,074 12,958 57,324 5,995 (Increase) decrease in notes receiv- able - partnersreceivable-partners 46,406 (5,673) (5,531) (5,572) (5,594) Decrease in trade and other receivables - - 1,720 Decrease (increase) in other assets - - 1,746 418 (936) Increase (decrease) in 4% convertibleConvertible subordinated debenture in- cluding accrued interest 65,084(985,320) 65,084 65,084 (Decrease) Increaseincrease in accounts payable and other liabilities (31,280) 12,846 (2,939) (67,200) (174,681) Total Adjustments $ 124,194(8,025,944) $ 54,45699,141 $ 194,603124,194 NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES $ (111,754)(1,182,613) $ (97,521)(75,056) $ 52,640(111,754) See notes to financial statements. II-18 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998, AND 1997 UNAUDITEDAUDITED NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of Presentation On November 3, 1986, Wimbledon Development Ltd. (a limited partnership) was formed to constructOrganization and sell condominium units on land acquired from All- State Properties L.P. (hereafter the Company). As of June 30, 1999, all the land and condominiums owned by Wimbledon have been sold. The Company has a 99% limited partnership interest in Wimbledon Development Ltd. and the remaining ownership is being held by a corporation controlled by the president of the Company. The Corporation is the general partner of the partnership and is responsible for the management of Wimbledon Development Ltd. The Company includes in its accounts the assets, liabilities, revenues and expenses of Wimbledon Development Ltd. All significant intercompany accounts and trans- actions have been eliminated. B. OrganizationOperations All-State Properties L.P. (a limited partnership) is(the Partnership) was organized under the successorRevised Uniform Limited Partnership Act of Delaware on April 27, 1984 to conduct the business formerly carried on by a predecessor corporation, All-State Properties, Inc. and Subsidiaries. On September 20, 1984, the shareholders of All-State Properties, Inc. approved(the Corporation). Pursuant to a Plan of Liquidation pursuantadopted by shareholders of the Corporation on September 30, 1984, the Corporation transferred substantially all of its assets to which the shareholders were issuedPartnership, and the Corporation distributed such limited partnership unitsinterests to its shareholders. The Partnership's principal business has been land development and the construction and sale of residential housing in Broward County, Florida. However, it has substantially completed its land development activities and the sale of residential housing. Its present activities are: Through a 36.12% owned Florida limited liability corporation, Tunicom LLC (Tunicom)(formerly known as Unicom Partnership Ltd.) the partnership was engaged in the Partnership in exchange for their stockoperation of the Corporation. C. Equity in Partnerships The investments in unconsolidateda 324-unit adult rental apartment project on 78.2 acres of land. Through a 50% owned real estate partnerships are carried at cost plus the Company's equity (deficiency)joint venture, City Planned Communities (CPC), The Partnership was engaged in the partnerships' undistributed earnings (deficit) (Note 2). D.development and sale of commercial and residential land. B. Operations and Income Recognition The Company was primarily engaged, in South Florida, in the development and sale of land through a 50% owned real estate partnership, City Planned Communities which is substantially inactive as of June 30, 1999,2001, except for various intercompany loans and advances (Note 10)2). II-19 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 AUDITED NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Operations and Income Recognition (Continued) It also was involved in the construction and sale of residential condominiums through a 99% owned limited partnership interest in Wimbledon Development Ltd. As of June 30, 1999,2000, all the land and condominiums owned by Wimbledon have been sold II-19 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 1999, 1998, AND 1997 UNAUDITED NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Operations and Income Recognition (Continued) (Note 1A). In addition, the Company has a 36.12% limited partnership interest in Unicom Partnership Ltd.Tunicom LLC. (Note 2), which hashad constructed and operatesoperated an adult apartment rental community. Condominiums Revenues fromcommunity that was sold during the sale of condominiums are recorded at the time of closing. Construction costs, as outlined in FASB No. 67, Accounting for Cost and Initial Rental Operations of Real Estate Projects, are allocated to individual units based on relative sales value of each unit. E. Real Estate Held for Sale and Development Real estate held for sale and development is carried at the lower of cost or net realizable value. Costs of acquiring and developing land are accumulated and allocated on a per unit basis. During the period of development and construction, certain overhead, selling and carrying costs were capitalized to the extent that these capitalized costs did not increase the carrying value in excess of net realizable value. In accordance with FASB No. 34, Capitalization of Interest Cost, interest costs on qualifying assets under construction are capitalized until the assets are ready for their intended use. Thereafter, such expenses are a period cost. During the years ended June 30, 1999, 1998 and 1997, total interest incurred of $120,080, $119,529 and $100,838, respectively were charged to current operations.year (Note 12). II-20 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998, AND 1997 UNAUDITEDAUDITED NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F.C. Income (Loss) Per Partnership Unit Income (loss) per partnership unit is computed by dividing the net income (loss) by the weighted average number of units outstanding. EffectNo effect is given to the convertible debentures that are dilutive. G.dilutive and have been repaid subsequent to June 30, 2000. (See Note 5). D. Cash and Cash Equivalents For the purposes of the statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less to be cash equivalents. H.E. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles may requirerequires management to make estimates and assumptions that affect certainthe reported amounts of assets and disclosures. Accordingly, actualliabilities, the 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 those estimates. NOTE 2 - EQUITY (DEFICIENCY) IN PARTNERSHIPS AND NOTE RECEIVABLE The Company owns a 50% interest in City Planned Communities (a general partnership) (CPC). In September 1986, the Company acquired a 49.5% (subsequently adjusted to 36.12%) Note 2(Note 2) limited partnership interest in a limited partnership,Tunicom LLC (formerly known as Unicom Partnership Ltd (NoteLtd.)(Note 12). The beneficial owners of Unicom Partnership Ltd.Tunicom LLC were substantially the same as the beneficial owners of City Planned Communities. Unicom Partnership Ltd.Tunicom LLC acquired land from City Planned Communities and has constructed an adult apartment rental community. CPC advanced approximately $12,700,000 to Unicom.Tunicom. The funds have been used by UnicomTunicom to fund project costcosts and the operating deficit. In June, 1995, the partners of CPC agreed to contribute $13,351,210 in notes, loans and accrued interest to Unicom'sTunicom's capital. In the current year, through the sale of substantially all the assets of Tunicom (Note 12), funds were generated to repay the liability in full. II-21 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998, AND 1997 UNAUDITEDAUDITED NOTE 2 - EQUITY (DEFICIENCY) IN PARTNERSHIPS AND NOTE RECEIVABLE (Continued) The Company discontinued applying the equity method to its investment in Unicom Partnership Ltd. (Unicom)Tunicom LLC. (Tunicom) in 1988 when the investment account was reduced to zero. The Company will resumeresumed applying the equity method onlyin the current year after its share of the net income equalsexceeded the share of net losses not recognized during the period the equity method was suspended. The unrecognized income or losses arewas not included in the Company's partners' deficiency. During the current year theThe Company's share of Unicom'sTunicom's income (loss) was $127,779. As of June 30, 1999$5,896,110 in 2001, $150,945 in 2000 and 1998, the$(127,779) in 1999. The details of the related party obligations between City Planned Communities and the Company are as follows: JUNE 30, 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 Note receivable from City Planned Communities - Unsecured demand loan, interest at 8.5% per annum including accrued interest $ 17,906- $ 33,592- $ 17,906 Note payable to City Planned Communities - unsecured demand loan, interest at 8.5% per annum, including accrued interest - (225,116) (212,711) (200,341) NET $ (194,805)- $ (166,749)(225,116)$ (194,805) II-22 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED NOTE 2 - EQUITY (DEFICIENCY) IN PARTNERSHIPS AND NOTE RECEIVABLE (Continued) The Company's equity (deficiency) in the partnership and the percentage of the equity (deficit) in the partnerships to the total assets of the Company as of June 30, is as follows, CITY UNICOMTUNICOM PLANNED PARTNERSHIP COMMUNITIES LTD. (NOTE 10) (NOTE 12) COMBINED 2001 $ (68,208) $ 323,102 $ 254,894 2001 (26.75%) 126,759 (100.0%) 2000 $ (1,033,229) $ -0- $ (1,033,229) 2000 (100.0%) -0- (100.0%) 1999 $ (1,015,561) $ -0- $ (1,015,561) 1999 (100.0%) -0- (100.0%) 1998 $ (992,266) $ -0- $ (992,266) 1998 (100.0%) -0- (100.0%) In consideration of cash advances made and services rendered by certain individuals to Unicom, UnicomTunicom, Tunicom agreed to distribute 26.76% (including 5% to the general partner of the Company) of any of its cash that becomes available for distribution to those individuals.distribution. The balance of any cash that becomes available for distribution up to $13,351,210 will bewas distributed to the Company and Newnel Partnership for the benefit of CPC. After $13,351,210 is disbursed,The remaining cash will be distributed 26.76% to the aforementioned individuals and the remainder as follows: 1.34% to F. Trace, Inc., the former general partner of UnicomTunicom 49.33% to Newnel Partnership 3.60% to certain individuals who made cash advances to UnicomTunicom on behalf of the Company. 45.73% to the Company 100.00% II-23 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED NOTE 2 - EQUITY (DEFICIENCY) IN PARTNERSHIPS AND NOTE RECEIVABLE (Continued) Subsequently, of the holders of the 26.76%, individuals receiving 23.27% were admitted as limited partners of Unicom,Tunicom, with the 3.49% remaining as non- partnernon-partner distributees. Restating the above to reflect the admission of the aforesaid individuals as limited partners, the cash flow available for distribution after the payment of the $13,351,210 will be distributed as follows: 3.49% to the non-partner distributees As to the partners: 1.00% to F. Trace, Inc., the former general partner of UnicomTunicom 23.27% to the newly admitted limited partners 36.12% to Newnel Partnership 36.12% to the Company (including 3.60% given to certain individuals who made cash advances to UnicomTunicom on behalf of the Company) 100.00% The amount of the distribution to be received by the Company is the same under both of the above calculations. In addition, CPC assigned 9.00% of any of its cash that becomes available for distribution to certain individuals for funds advanced by them to CPC. The Company also assigned 10.23% of its share of distributions from CPC to individuals in consideration of funds advanced by them to the Company. NOTE 3 - NOTES RECEIVABLE - PARTNERS The former treasurer and the general partner of the Company, who were officers of the predecessor corporation, originated on April 19, 1984 the notes receivable when they exercised their options to acquire 130,000 shares of common stock, which were subsequently exchanged for limited partnership units. The Company received cash and notes receivable from the transaction. The balances of notes receivable consistsin the amount of the following as of June 30, 1999.$183,643, including accrued interest, mature July 2001 and accrue interest at 4% per annum. II-24 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED NOTE 3 - NOTES RECEIVABLE - PARTNERS (Continued) PRINCIPAL INCLUDING ACCRUED INTEREST MATURITY DATE INTEREST $ 224,376 July, 2000 4% per Annum To secure their obligation to pay theThe notes and accrued interest,are non-recourse; however, the Company was grantedhas a lien on and a security interest in the units. Cash distributions which were previously applied as mandatory prepayments at 50% were increased to 100% and are to be applied first to accrued interest, and then as a reduction of principal until paid in full. The notes have been fully reserved in prior years and are non-recourse.reflected as part of the Partners' deficit. In the current year $52,000 of distributions were applied to the payment of interest. 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 NOTE 4 - NOTES PAYABLE Notes payable at June 30 consist of the following: Notes payable - individual (in- cluding accrued interest of $0, $10,852 and $7,124 and $3,127 respec- tively)re- spectively) due December 31, 2000. Interest at 10% per annum. The Company assigned a 1% par- ticipation in profits and cash flow from UnicomTunicom or City Planned Communities in order to obtain this loan. (Notes 2 and 10). $ 44,298- $ 40,30148,026 $ 44,299 Note payable - individuals (in- cluding accrued interest of $0, $92,764 and $81,999 and $56,475 respec- tively)re- spectively) due on demand, interestinter- est from 8.5% to 15% per annum, un- secured.unsecured. The Company assigned 7.5% of its potential distribu- tions from City Planned Communi- ties to the individuals in order to obtain this loan and other funds advanced on the Company's behalf. (See Note 2). - 564,052 528,927 390,299$ - $ 612,078 $ 573,226 II-25 ALL STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITED NOTE 4 - NOTES PAYABLE (Continued) 1 9 9 8 1 9 9 7 $ 573,225 $ 430,600 The approximate amortization of principal and accrued interest until maturity will be as follows as of June 30, 1999: June 30, 2000 $ 528,927 June 30, 2001 44,298 $ 573,225AUDITED NOTE 5 - 4% CONVERTIBLE SUBORDINATED DEBENTURES The 4% convertible subordinated debentures at June 30, consist of the following: 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 Convertible at $3 per unit $ 1,625,301- $ 1,625,301 $ 1,625,301 Convertible at $1 per unit 1,811- 1,811 1,811 Accrued interest (Note 8) - 1,001,406 936,321 871,237 806,153$ - $ 2,628,518 $ 2,563,433 $ 2,498,349 $ 2,433,265In August 2000, the debentures and accrued interest were repaid from the proceeds received from Tunicom LLC's sale of its adult rental project. (See Note 13). NOTE 6 - INCOME TAXES The partnership is not subject to income taxes. Instead, the partners are required to include in their income tax return their share of the Company's income or loss as adjusted to reflect the effects of certain transactions which are accorded different accounting treatment for federal income tax purposes. The partnership's approximate income (losses) for tax reporting purposes for the years ended June 30, 2001, 2000 and 1999 1998 and 1997 aggregatedwas $6,800,000, ($236,000), ($160,000)170,000) and ($680,000)236,000), respectively, which approximates income (losses) of $2.19, ($0.05), and ($0.08), ($0.05) and income of ($0.22) per unit, respectively, based on 3,118,065 outstanding partnership units. II-26 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED NOTE 7 - ACCOUNTS PAYABLE AND OTHER LIABILITIES: Account payable and other liabilities at June 30 consist of the following: 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 Taxes, primarily real estateFees 4,499 16,485 8,705 Other 7,540 26,833 21,769 $ -12,039 $ -43,318 $ 605 Professional fees 8,705 9,585 77,012 Other 21,769 23,828 22,996 $ 30,474 $ 33,413 $ 100,613 NOTE 8 - ACCRUED INTEREST Accrued interest con- sists of the following: 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 Interest payable included in notes payable (Note 4) $ 89,123- $ 59,542103,616 $ 89,123 Interest included in 4% con- vertibleconvertible subordinated deben- turesdebentures (Notes 5 and 10) - 1,001,406 936,321 871,237 $ 1,025,444- $ 930,7791,105,022 $1,025,444 NOTE 9 - PARTNERS' CAPITAL (DEFICIT) As of June 30, 1999,2000, there are 1,5601,523 shareholders holding 283,209264,308 shares of the predecessor corporation that have not converted their stock certificates into limited partnership units. The limited partnership, from inception through June 30, 1999,2001, has declared accumulated distributions of $.85$1.25 per each unit of partnership interest outstanding. The partnership distributions payable represent the Company's liability if the stock certificates are converted into partnership units. The Company did not makemade cash distributions to its unitunits owners during years endedthe year June 30, 1999, 1998 and 1997.2001 of $.40 per unit. NOTE 10 - RESTRUCTURED FINANCING In October of 1993, the Company owedwas liable on a bank interest and principal totaling $270,974 on two outstanding obligations (See Note 4). A limited partner of the Company II-27 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED NOTE 10 - RESTRICTEDRESTRUCTURED FINANCING (Continued) Company purchased the obligation from the bank for $125,000 and advanced another $25,000 to the Company. The Company and the individual entered into a modification of the original mortgage and also assigned to the individual a 1% participation in profits and cash flows from UnicomTunicom or City Planned Communities. The obligation originally maturing on August 1, 1995 was extended to August 1, 1997 wasand modified as of August 1, 1997 converting all unpaid interest to principal and all principal will accrue interest at 10% per annum. This new note and accrued interest isbecame due on December 31, 2002.2000 and was paid. NOTE 11 - BUSINESS UNCERTAINTIESLEGAL PROCEEDINGS The Company has $2,563,433 of convertible subordinated debentures including accrued interestlimited partnership in which matured on September 30, 1989 (Note 5). The Company's primary source of cash flow has been from its 50% owned real estate partnership, City Planned Communities (Note 2). The current availability of cash flow from City Planned Communities is not deemed sufficient in order for the Company is the limited partner was named as a defendant in a lawsuit seeking all damages allowable under the Florida Wrongful Death Act. A motion to meet its currently maturing obligations and its working capital requirement. The Company also has a 36.12%dismiss the limited partnership interestwas filed and granted by the circuit court judge. Plaintiffs appealed the order dismissing the limited partnership in Unicom, A Limited Partnership (Notes 1D, 2 and 12). However,this litigation. In March 2001, the investment in Unicom has not generated cash flow sufficient to pay its subordinated debentures.appellate court affirmed the lower court's final order of dismissal with prejudice. As a result, the plaintiffs no longer have a case again Wimbledon Development Ltd., the limited partnership. II-28 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 AUDITED NOTE 12 - UNICOM PARTNERSHIP LTDTUNICOM LLC - LEASE AGREEMENT Effective July 1, 1997, UnicomTunicom entered into an agreement with an intended purchaser who leased the facility for a three-year period after which time the purchaser canwould purchase the property or cancel the option and forfeit their deposit. The agreement callscalled for the tenant to pay UnicomTunicom a base rent equal to the monthly principal and interest on the outstanding HUD financing plus the amounts necessary for payment of the various escrows related to the HUD financing. The tenant will retainretained $821,712, $1,175,000, and $1,275,000, respectively, during the three year period, and Unicom will beTunicom was paid all other remaining revenue from the facility providingfacility. In connection with the profit during any year exceeds a certain threshold. II-28 ALL-STATE PROPRTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) NOTES TO FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 1999, 1998 AND 199 UNAUDITED NOTE 13 - LEGAL PROCEEDINGS A limited partnership in which the Company is the limited partner has been named as a defendant in a lawsuit seeking all damages allowable under the Florida Wrongful Death Act. On or about April 17, 1998, onesale of the decedentsadult rental retirement facility (Note 4), Tunicom LLC ("Tunicom") (a limited liability corporation), was operating a motor vehicle informed on August 14, 2000 as the parking lot of a condominium, developed by the defendant limited partnership when she drove said vehicle into a canal abutting but not part of the condominium property. The other decedent was a passenger in said vehicle. The Company does not believe it has any liability, and counsel selected by its insurance carrier is representing the limited partnership. II-29 CITY PLANNED COMMUNITIES 5500 NORTHWEST 69TH AVENUE * LAUDERHILL, FLORIDA * 33319 (954) 572-2112 BROWARD * TELECOPIER (954) 749-5664 The accompanying combined balance sheets of City Planned Communities (a partnership) (CPC) andsuccessor to Unicom Partnership, Ltd. (a limited partnership) (Unicom) as("Unicom"). Since Tunicom succeeded to all of June 30, 1999 and 1998the assets and the related combined statementsliabilities of operations, changesUnicom, all previous references to Unicom are referred to as Tunicom hereafter. Tunicom was formed in partners' capital (deficit) and cash flowsOctober 1986 to acquire land from "CPC" for the years then ended,purpose of constructing and operating a 324 unit adult rental retirement project. All-State and entities under common control with other partners of "CPC" have a substantial limited partnership interest in Tunicom. Accordingly, the beneficial owners of Tunicom are substantially the same of those of "CPC". On August 16, 2000, Tunicom sold the adult rental retirement facility, including the real property and certain tangible and intangible assets, for a purchase price of $47,159,295. After giving effect to the deposit of $4,500,000 previously accounted for, the existing mortgage in the amount of $26,720,254 and various adjustments, Tunicom received net proceeds of $16,379,732. Tunicom distributed $16,200,000 to its partners and All-State Properties, L.P.'s share was approximately $5,800,000, which was used to pay the Company's outstanding debentures and accrued interest in the amount of $2,638,324 and liabilities in the amount of $769,038. Total revenue includes additional income in the amount of $5,150,666 from real estate partnerships resulting from the realization of a $4,407,944 (All-State Properties' share) allowance for loss that had been previously deducted against the investment in Tunicom and the supplemental information listedbalance from the adjustment of the Company's equity in the index, have been compiled by these partnerships in accordance with standards established by the American Institute of Certified Public Accountants. The accompanying financial statements have not been audited by independent public accountants, and no accountant has expressed an opinion thereon. As discussed in Note 5, Unicom successfully completed a reassignment and reinstatement of its mortgage on July 28, 1995. As of July 1, 1997, Unicom entered into a lease and an option to purchase agreement with CareMatrix Corporation. (See Note 6C to Combined Financial Statements). The financial statements of Unicom have been audited. No auditing procedures have been performed since September, 1989 for CPC. As explained in the accompanying statements in respect of the financial statements of All-State Properties L.P., the undersigned entities intend to obtain audited financial statements for the 1990-1999 periods as soon as they are in a financial position to compensate an accountant for such services. Very truly yours, CITY PLANNED COMMUNITIES UNICOM PARTNERSHIP LTD. By: STANLEY R. ROSENTHAL Managing Partner II-30partnerships. II-29 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINED COMPILED FINANCIAL STATEMENTS JUNE 30, 1999 UNAUDITED2001 AUDITED C O N T E N T S PAGE Partnership's Letter II-30Independent Auditor's Report II-31 Combined Financial Statements: Balance Sheets II-32 Statements of Operations II-33 Statements of Partners' Capital (Deficit) II-34 Statements of Cash Flows II-35/37 Notes to Financial Statements II-38/43 Supplemental Information: Explanation of eliminations to combining financial statements II-44 Combining Balance Sheets II-45/48 Combining Statements of Operations II-49/51 Combining Statements of Partners' Capital (Deficit) II-52 Combining Statements of Cash Flows II-53/61 Selected Financial Data II-3 II-30 FREEMAN, BUCZYNER & GERO ONE SOUTHEAST THIRD AVENUE SUITE 2120 MIAMI, FLORIDA 33131 305-375-0766 INDEPENDENT AUDITOR'S REPORT To The Partners City Planned Communities and Tunicom LLC Lauderhill, Florida We have audited the accompanying combined balance sheets of City Planned Communities and Tunicom LLC (F.K.A. Unicom Partnership, Ltd. - - Note 8) as of June 30, 2001 and 2000 and the related statements of operations, partners' capital and cash flows for each of the three years in the period ended June 30, 2001. These financial statements are the responsibility of the partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of City Planned Communities and Tunicom LLC (F.K.A. Unicom Partnership, Ltd.) as of June 30, 2001 and 2000, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2001, in conformity with generally accepted accounting principles. October 10, 2001 II-31 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINED BALANCE SHEETS JUNE 30, 19992001 AND 1998 UNAUDITED2000 AUDITED A S S E T S 2 0 0 1 9 9 9 1 9 9 82 0 0 0 Property and equipment, at cost (Notes 1B, 5, 6C and 6C)8): Building, including land only of $1,078,114$161,816 in 2001 and $1,085,579 of land in 2000 $ 33,471,775161,916 $ 33,397,34033,474,770 Furniture and equipment 1,547,231 1,309,753- 1,711,396 China, glassware, silverware and utensils 41,713- 41,713 $ 35,060,719161,916 $ 34,748,80635,227,879 Less accumulated depreciation and amortization (8,763,941) (7,812,616)- (9,740,474) $ 26,296,778161,916 $ 26,936,19025,487,405 Cash 1,526,882 1,128,620165,722 1,665,025 Cash - restricted for tenants' security deposits 734,986 686,127- 781,050 Note receivable - related parties - 310,190 Real estate for sale - at cost (Note 5)5 and 8) - land 9,666- 9,666 Deferred management fees - related party (Notes 1A ,4 and 4) 631,5438) 34,103 631,543 Funds held in escrow 583,292 619,913- 584,283 Prepaid expenses 242,329 336,773401,401 152,710 Other assets 571,678 599,750- 497,968 TOTAL ASSETS $ 30,597,154763,142 $ 30,948,58230,119,840 LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) LIABILITIES: Mortgage loan payable, including $179,329 and $0$177,775 of accrued interest respectively (Note 5)5 and 8) $ 26,985,002- $ 27,097,30426,844,048 Notes payable - others 27,413 40,812- 85,637 Notes payable - related parties, including $24,221 and $38,960$5,944 of accrued interest, respectively (Note 2) 380,627 849,987- 35,944 Accounts payable and accrued expenses (Note 3) 1,314,573 1,157,3805,041 1,170,367 Tenant security deposits 716,646 630,790- 732,202 Deferred interest (Note 5) 2,276,756 2,355,5725 and 8) - 2,212,612 Option deposit (Note 6C)6C and 8) - 4,500,000 4,500,000 $36,201,017 $ 36,631,8455,041 $ 35,580,810 See notes to combined financial statements. II-32 (1 of 2) CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC(A LIMITED LIABILITY CORPORATION) COMBINED BALANCE SHEETS JUNE 30, 2001 AND 2000 AUDITED LIABILITIES (CONTINUED): COMMITMENTS AND CONTINGENCIES (Notes 4, 6, and 7) - - PARTNERS' CAPITAL (DEFICIT) (Notes 4 & 6B) (5,603,863) (5,683,263)758,101 (5,460,970) TOTAL LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) $ 30,597,154763,142 $ 30,948,58230,119,840 See notes to combined financial statements. II-32 (2 of 2) CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINED STATEMENTS OF OPERATIONS YEARS ENDED JUNE 30, 2001, 2000, AND 1999 1998, AND 1997 UNAUDITEDAUDITED 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7REVENUES: Net sale of assets (Note 6C) REVENUES: Sale of land8) $ 21,705,571 $ - $ - $ - Rental income - - 10,449,562 Interest and other income 50,487 13,832 18,818 114,134 90,035 Lease income (Note 6C) - 5,744,412 5,352,291 (1)5,239,408 -Forgiveness of interest (Note ?) $ 5,371,109 $ 5,353,542 $ 10,539,597 EXPENSES: Cost of land sold2,226,737 $ - $ - $23,982,795 $ - Dietary and resident services - - 3,156,8115,758,244 $ 5,371,109 EXPENSES: General and adminis- trative (Note 4) $ 982,114 $ 1,396,899 $ 1,217,305 1,078,689 1,049,693 Marketing and adverti- sing - - 256,120 Maintenance and utili- ties - - 1,390,463 Taxes and insurance 92,046 624,761 507,265 496,024 792,746$ 1,074,160 $ 2,021,660 $ 1,724,570 $ 1,574,713 $ 6,645,833 NET INCOME BEFORE DEPRE- CIATION, AMORTIZATION AND INTEREST: $ 3,646,53922,908,635 $ 3,778,8293,736,584 $ 3,893,7643,646,539 OTHER EXPENSES: Interest (Note 1C) $ 2,306,611272,309 $ 2,624,4122,259,354 $ 2,490,8332,306,611 Depreciation and amortization - 1,057,963 1,032,755 1,013,533 951,936$ 272,309 $ 3,317,317 $ 3,339,366 $ 3,637,945 $ 3,442,769 NET INCOME $ 307,17322,636,326 $ 140,884419,267 $ 450,995 (1) Restated for comparative purposes.307,173 See notes to combined financial statements. II-33 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINED STATEMENTS OF PARTNERS' CAPITAL (DEFICIT) YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 PARTNERS' CAPITAL (DEFICIT)- Beginning $ (5,683,263)(5,460,970) $ (3,816,143) $ (5,116,277)(5,603,863) $(5,683,263) Distributions (Notes 4 & 6B) (16,417,255) (848,936) (1,572,000) (5,001,156) (1,219,000) Contributions (Notes 4 & 6B) - 572,562 1,344,227 2,993,152 2,068,139 Net income 22,636,326 419,267 307,173 140,884 450,995 PARTNERS' CAPITAL (DEFICIT) - Ending $ (5,603,863)758,101 $ (5,683,263)(5,460,970) $ (3,816,143)(5,603,863) See notes to combined financial statements. II-34 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINED STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash Flows from Operating Activities: Cash from customers/ tenants $ - $ - $ 10,421,519 Interest received $ 144,191 $ 1,428 $ 18,818 - 53,341 Cash paid - interest (407,180) (2,319,213) (2,299,245) (4,078,848) (2,223,519) Cash paid - suppliers, employees and admini- strative expenses (1,482,450) (2,024,381) (1,504,950) (731,094) (6,780,951) Lease incomeNet sales of property 43,214,691 5,677,155 5,352,291 4,676,201 - Net Cash (Used) Pro- vided)vided by Operat- ing Activities $ 1,566,91441,469,252 $ (133,741)1,334,989 $ 1,470,390)1,566,914 Cash Flows from Investing Activities: Capital expenditures - net $ (311,913)- $ (133,920)(160,480)$ (107,567) Escrow funding - - (22,764)(311,913) Tenant security de- posits - (30,508) 36,997 - (54,476) Other - - - Partners' distribu- tions(distribu- tions)contributions - net (16,417,256) (276,374) (227,775) $ (2,008,004)$ (1,219,000) Option deposit - 4,500,000 - Net Cash Provided (Used) by Invest- ing Activities $(16,417,256)$ (467,362)$ (502,691) $ 2,358,076 $ (1,403,807) Cash Flows from Financ- ing Ativities:Activities: Cash received (paid) - related party $ (454,621)200,611 $ (1,569,604)(554,617)$ 2,416(454,621) Cash received (paid) notes & mortgages (26,751,910) (174,867) (211,340) (399,333) (227,513) Other - (31,941) (898) Net Cash (Used) Pro- vided by Financ- ingFinancing Activities $ (665,961)(26,551,299) $ (2,000,878)(729,484)$ (225,995)(665,961) See notes to combined financial statements. II-35 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINED STATEMENTS OF CASH FLOWS (CONTINUED) YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 398,262(1,499,303) $ 223,457138,143 $ (159,412)398,262 CASH AND CASH EQUIVA- LENTS-BEGINNING OF YEAR 1,665,025 1,526,882 1,128,620 905,163 1,064,575 CASH AND CASH EQUIVA- LENTS-END OF YEAR $ 1,526,882165,722 $ 1,128,6201,665,025 $ 905,1631,526,882 See notes to combined financial statements. II-36 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINED STATEMENTS OF CASH FLOWS (CONTINUED) YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITED (A)AUDITED 2 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 Reconciliation of net profitincome to net cash provided (used)by operating activities: Net income $ 307,17322,636,326 $ 140,884419,267 $ 450,995307,173 Adjustments to reconcile net profitincome (loss) to net cash provided (used) by operating activities: Decrease in property, plant & equipment $ 24,496,319 $ - $ - Depreciation and amortization $- 1,057,963 951,325 $ 924,192 $ 951,936 Increase (decrease) in accrued interest notes payable (134,871) (59,858) (7,916) (1,674,363) 129,783 (Increase) decrease in prepaid expense 159,596 1,509 94,444 (162,326) 11,415 Decrease (increase) in other assets and ac- counts receivable - 60,314 64,693 (397,472) (69,868) (Decrease) increase in accounts payable and accrued expenses (1,165,326) (144,206) 157,195 1,035,344 (3,871)Decrease in deferred management fee 597,440 - - Decrease in deferred profit (2,987,200) - - Decrease in un- amortized interest (2,212,612) - - Decrease notes re- ceivables 79,579 - - Total Adjustments $ 1,259,74118,832,925 $ (274,625)915,722 $ 1,019,3951,259,741 NET CASH (USED) PROVIDED BY OPERATING ACTIVI- IESTIES $ 1,566,91441,469,252 $ (133,741)1,334,989 $ 1,470,390 SCHEDULE OF NON-CASH INVESTING AND FINANC- ING ACTIVITIES: (A) In December of 1996, $30,000 of notes due to partners of City Planned Communities were contributed to the capital of the Company.1,566,914 See notes to combined to financial statements. II-37 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Organization, Operations and Principles of Combination 1. City Planned Communities (Hereafter CPC) The Partnership was formed in 1968 and was engaged in the business of land sales in Broward County, Florida (the Partnership is relatively inactive). The two fifty percent partners of CPC are All-State Properties L.P. (a limited partnership) and NLI Partners, Ltd. (a limited partnership). 2. Unicom Partnership Ltd.Tunicom LLC (Hereafter Unicom)Tunicom) The limited partnership liability coporation (formerly known as Unicom Parntership, Ltd.)was formed on October 27, 1986 to acquire land from CPC for the purpose of constructing and operating a 324 unit rental project in Broward County, Florida, which is being operated as an adult apartment rental complex (AARC). Effective July, 1997, Unicom hasTunicom leased its property. (See Note 6C)property and in August 2000 the rental property was sold (Note 7). 3. Basis for Combination All-State Properties L.P. and entities under common control with the partners of NLI Partners, Ltd. have a 93% limited partnership interest in Unicom.Tunicom. Accordingly, the beneficial owners of UnicomTunicom are substantially the same as those of CPC. Therefore, the financial statements of CPC and Unicom are being presented on a combined basis to offer a more complete presentation of the related entities. All intercompany transactions have been eliminated in combination. In 1987, UnicomTunicom purchased 78 acres of land from CPC. Due to the related ownership and control of the two entities and in accordance with prescribed accounting standards (Note 1D), the gross profit of approximately $3,158,000 from this sale, computed as follows, has been deferred: Selling price $ 4,000,000 Cost of landdeferred until the current year when substantially all the property was sold and land development (822,000) Closing costs (20,000) $ 3,158,000$2,987,200 profit was recognized. II-38 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. Organization, Operations and Principles of Combination (Continued) 3. Basis for Combination (Continued) Selling price $ 4,000,000 Cost of land and land development (822,000) Closing costs (20,000) $ 3,158,000 Pursuant to the Management Agreement with the deceased Managing Partner, the management fee related to this transaction was paid toand the deceased Manager. The expense will be recognized whenwas deferred until the profit iswas recognized. 4. Cash and Cash Equivalents For purposes of the statements of cash flows, the Company considers all unrestricted cash with maturities of three months or less to be cash equivalents. Bank Repurchase Agreements totaling $1,491,404$78,982 and $1,584,666 were included in cash as of June 30, 1999 were included in cash.2001 and 2000, respectively. 5. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles may requirerequires management to make estimates and assumptions that affect certainthe reported amounts of assets and disclosures. Accordingly, actualliabilities 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 periods. Actual results could differ from those estimates. B. Property and Equipment (Note 7) 1. Building iswas depreciated using the straight-line method over an estimated useful life of 40 years for financial statement purposes, whereas the modified accelerated cost recovery system (MACRS) method over 27-1/2 years is used for tax presentation. Since the company is a partnership, income or losses are reported by the partners. Accordingly, no tax effect results from the temporary differences. II-39 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 AUDITED NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) B. Property and Equipment (Continued) 2. Furniture and equipment arewere depreciated using MACRS for both tax and financial statement presentation. Differences between this method and other accelerated depreciation methods are not material. 3. China, glassware, silverware and utensils arewere represented by a base inventory. Additional acquisitions are expensed when purchased. The base inventory will only change if material variances occur. II-39 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP, LTD. (A LIMITED PARTNERSHIP) NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 1999, 1998 AND 1997 UNAUDITED NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Interest In accordance with FASB Nos. 34 and 67, Capitalization of Interest Cost and Accounting for Costs and Initial Rental Operation of Real Estate Projects, interest and real estate taxes on qualifying assets under construction were capitalized until such time as the property was ready for its intended use. Thereafter, such expenses are period costs. During the years ended June 30, 1999, 19982001, 2000 and 1997,1999, total interest incurred wasof $272,309, $2,259,354 and $2,306,611, $2,624,412 and $2,490,833,respectively was charged to operations. D. Income Tax Reporting For income tax purposes, CPC reports on the cash basis of accounting while UnicomTunicom reports on the accrual basis. Both utilize the accrual basis of accounting for financial reporting purposes. No provision is made in the financial statements for income taxes since such taxes are the responsibility of the partners and not the partnerships. NOTE 2 - NOTES PAYABLE - RELATED PARTIES Funds advanced by various partners, evidenced by unsecured demand notes, bearing interest at prime rate. 2 0 0 1 9 9 9 1 9 9 82 0 0 0 Total principal $ 356,406- $ 811,02730,000 Accrued interest 24,221 38,960- 5,944 $ 380,627- $ 849,98735,944 II-40 (1 of 2) CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 AUDITED NOTE 3 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses at June 30, 19992001 and 19982000 consist of the following: 2 0 0 1 9 9 9 1 9 9 82 0 0 0 Accounts payable $ 1,112,2171,641 $ 960,801968,367 Real estate taxes 202,356 196,5793,400 202,000 $ 1,314,5735,041 $ 1,157,3801,170,367 II-40 (2 of 2) CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP, LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED NOTE 4 - TRANSACTIONS WITH RELATED PARTIES Management Agreements In a prior year, UnicomTunicom entered into an agreement with an individual who is the general partner of All-State Properties L.P., to oversee the day-to-day operations of the AARC. In the prior year UnicomTunicom assigned a 5% interest of all available cash flows to the individual for services rendered. (See Note 6A) NOTE 5 - MORTGAGE LOAN PAYABLE The mortgage balance of $27,638,956 was modified on July 28, 1995. The rate of interest was reduced to 8%, including servicing while the maturity date remained unchanged at January 1, 2029. The mortgage is insured by the Department of Housing and Urban Development (HUD) and is payable in monthly installments of $198,051. As a result of the mortgage modification $2,498,809 in accrued interest was forgiven. This amount is recorded as a deferred interest adjustment and is being amortized over the remaining term of the mortgage. During the current fiscal year interestInterest forgiveness was reduced by $41,686 as a resultrecognized in full upon sale of the deferred interest amortization. The approximate principal payments for the next five years ending June 30, are as follows: 2000 $ 233,091 2001 252,438 2002 273,390 2003 296,081 2004 320,656property. As of June 30, 1999 and 19982000 the outstanding indebtedness consisted of: 2 0 0 1 9 9 9 1 9 9 82 0 0 0 Principal $ 26,805,673- $26,666,273 Interest - 177,775 $ 27,097,304 Interest 179,329 - $26,985,002 $ 27,097,30426,844,048 NOTE 6 - COMMITMENTS AND CONTINGENCIES A. Management Contract (See Note 4) On July 1, 1997, the tenant of the facility appointed a management company that is owned by a partner of the Partnership. The management company is paid a fee equal to 4% of the monthly revenue. The management agreement expires June 30, 2002. II-41 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP, LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED NOTE 6 - COMMITMENTS AND CONTINGENCIES (Continued) B. Distributions In consideration of cash advances made and services rendered by certain individuals to Unicom, UnicomTunicom, Tunicom agreed to distribute 26.76% (including 5% to the general partner of the Company) of any of its cash that becomes available for distribution, to those individuals. The balance of any cash that becomes available for distribution up to $13,351,210 will be distributed to the Company and Newnel Partnership for the benefit of CPC. After $13,351,210 is disbursed, remaining cash will be distributed 26.76% to the aforementioned individuals and the remainder as follows: 1.34% to F. Trace, Inc., the former general partner of UnicomTunicom 49.33% to Newnel Partnership 3.60% to certain individuals who made cash advances to UnicomTunicom on behalf of the Company 45.73% to the Company 100.00% Subsequently, of the holders of the 26.76%, individuals receiving 23.76%23.27% were admitted as limited partners of Unicom,Tunicom, with the 3.49% remaining as non- partnernon-partner distributees. Restating the above to reflect the admission of the aforesaid individuals as limited partners, the cash flow available for distribution after the payment of the $13,351,210 will be distributed as follows: 3.49% to the non-partner distributees As to the partners: 1.00% to F. Trace, Inc. the former general partner of UnicomTunicom 23.27% to the newly admitted limited partners 36.12% to Newnel Partnership 36.12% to the Company (including 3.60% given to certain individuals who made cash advances to UnicomTunicom on behalf of the the Company) 100.00% II-42 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED NOTE 6 - COMMITMENTS AND CONTINGENCIES (Continued) B. Distributions (Continued) The amount of the distribution to be received by the Company is the same under both of the above calculations. In addition, CPC assigned 9.00% of any of its cash that becomes available for distribution to certain individuals for funds advanced by them to CPC. C. Lease Agreement Effective July 1, 1997, the Partnership entered into an agreement with an intended purchaser who leased the facility for a three-year period after which time the purchaser can purchase the property or cancel the option and forfeit their deposit. The agreement calls for the tenant to pay the Partnership a base rent equal to the monthly principal and interest on the outstanding HUD financing plus the amounts necessary for payment of the various escrows related to the HUD financing. The tenant will retain $812,712, $1,175,000 and $1,275,000, respectively, during the three year period, and the Partnership will be paid all other remaining revenue from the facility providing the profit during any year exceeds a certain threshold. On March 10, 2000 the intended purchaser assigned its interest, rights and option to purchase the property to an unrelated Company. The Company purchased the property on August 16, 2000 (Note 8). NOTE 7 - PENSION PLAN During year ended June 30, 1995, UnicomTunicom Partnership implemented a 401-K pension plan. Employees are eligible to participate in the plan if they have been employed by the Partnership for one year, work at least 20 hours per week, work a total of at least 1000 hours per year and are at least 21 years of age. The employer does not make a matching contribution. NOTE 8 - SALES OF THE ADULT RENTAL RETIREMENT FACILITY In connection with the sale of the adult rental retirement facility which closed on August 16, 2001, Tunicom LLC ("Tunicom") (a limited liability corporation), was formed II-43 (1 of 2) CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED LIABILITY CORPORATION) NOTES TO COMBINED FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2001, 2000 AND 1999 AUDITED NOTE 8 - SALES OF THE ADULT RENTAL RETIREMENT FACILITY (Continued) On August 14, 2000 as the successor to Unicom Partnership, Ltd. ("Unicom"). Since Tunicom succeeded to all of the assets and the liabilities of Unicom, all previous references to Unicom are referred to as Tunicom hereafter. On August 16, 2000, Tunicom sold the adult rental retirement facility, including the real property and certain tangible and intangible assets, for a purchase price of $47,159,295. After giving effect to the deposit of $4,500,000 previously accounted for, the existing mortgage in the amount of $26,720,254 and various adjustments, Tunicom LLC received net proceeds of $16,379,732. Tunicom distributed $16,200,000 to its partners and All-State Properties, L.P.'s share was approximately $5,800,000. II-43 (2 of 2) CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) EXPLANATION OF ELIMINATIONS TO COMBINING FINANCIAL STATEMENTS JUNE 30, 2001, 2000 AND 1999 AND 1998 UNAUDITEDAUDITED The combining financial statements for City Planned Communities (CPC) and Unicom Partnership Ltd., (Unicom)Tunicom LLC, (Tunicom) are presented as supplemental information to the combined financial statements. All significant transactions between CPC and UnicomTunicom have been eliminated. Descriptions of the eliminations are as follows: (a) Cost of land purchased by UnicomTunicom from CPC in 1987 has been adjusted to reflect the carrying value of property, computed as follows: Land cost $ 250,578 Land development cost 571,704 Closing cost 20,000 Carrying value of property $ 842,282 Selling price (4,000,000) Adjustment to land and construction in progress and deferred profit $ (3,157,718) Amount realized on sale of property 2,987,200 $ (170,518) (b) As of June 30, 1994, UnicomTunicom borrowed approximately $12,700,000 from CPC for construction costscost overruns on the AARC and has issued demand notes to evidence the loans. Note activity is detailed below: JUNE 30, 1994 Net cash loaned from CPC to UnicomTunicom $ 12,703,031 Net accrued interest on notes 648,079 $ 13,351,110 Allowance for loss - note receivable June 30, 1990 $ (2,505,000) June 30, 1991 (3,616,000) June 30, 1992 (1,815,511) Unamortized discount (1,012,900) $ (8,949,411) $ 4,401,699 Interest on the notes was eliminated effective April 1, 1990. In June of 1995 CPC distributed to its partners the notes and interest receivable due from UnicomTunicom (net of allowances and discounts). The partners agreed to contribute these obligations to the capital of Unicom.Tunicom. See notes to combined financial statements. II-44 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINING BALANCE SHEETS JUNE 30, 1999 UNAUDITED2001 AUDITED
CITY TUNICOM LLC COMBINED PLANNED BALANCE COMMUNITIES ELIMINATIONS SHEET ASSETS Property and equip- ment, at cost: Land $ - $ 332,434 $ (170,518)(a) $ 161,916 $ - $ 332,434 $ (170,518) $ 161,916 Cash - 165,722 - 165,722 Deferred management fees - related party 34,103 - - 34,103 Other assets - 401,401 - 401,401 TOTAL ASSETS $ 34,103 $ 899,557 $ (170,518) $ 763,142
See notes to combined financial statements. II-45 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING BALANCE SHEETS (CONTINUED) JUNE 30, 2001 AUDITED
CITY TUNICOM LLC COMBINED PLANNED BALANCE COMMUNITIES ELIMINATIONS SHEET LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) LIABILITIES: Accounts payable and accrued expenses - 5,041 - 5,041 Tenant security deposits - - - - Deferred profit 170,518 - (170,518) - $ 170,518 $ 5,041 $ (170,518) $ 5,041 COMMITMENTS AND CONTINGENCIES - - - - PARTNERS' CAPITAL (DEFICIT) (136,415) 894,516 - 758,101 TOTAL LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) $ 34,103 $ 899,557 $ (170,518) $ 763,142
See notes to combined financial statements. II-46 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING BALANCE SHEETS JUNE 30, 2000 AUDITED
CITY TUNICOM LLC COMBINED PLANNED BALANCE COMMUNITIES ELIMINATIONS SHEET ASSETS Property and equip- ment at cost: Building, includ- ing land of $4,235,832 $ - $ 36,629,493 $(3,157,718)$ (3,157,718)(a)$ 33,471,775 Furniture and equipment - 1,547,2311,711,396 - 1,547,231 China, glassware, silverware and utensils - 41,713 - 41,713 $ - $ 38,218,437 $(3,157,718)38,385,597 $ 35,060,719(3,157,718) $ 35,227,879 Less accumulated depreciation and amortization - (8,763,941)(9,740,474) - (8,763,941) $ - $ 29,454,49628,645,123 $ - $ 26,296,778(3,157,718) $25,487,405 Cash 306 1,526,5761,664,719 - 1,526,8821,665,025 Cash - restricted for tenants' security deposits - 734,986781,050 - 734,986781,050 Notes receivable - Related party 225,116 85,074 - 310,190 Real estate for sale - at cost - land 9,666 - - 9,666 Deferred management fees - related party 631,543 - - 631,543 Funds held in escrow - 583,292584,283 - 583,292584,283 Prepaid expenses - 242,329152,710 - 242,329152,710 Other assets 6,886 564,792491,082 - 571,678497,968 TOTAL ASSETS $ 648,401873,517 $ 33,106,47132,404,041 $ (3,157,718) $ 30,597,15430,119,840
See notes to combined financial statements. II-45II-47 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINING BALANCE SHEETS (CONTINUED) JUNE 30, 1999 UNAUDITED2000 AUDITED
CITY UNICOMTUNICOM LLC COMBINED PLANNED PARTNERSHIP BALANCE COMMUNITIES LTD. ELIMINATIONS SHEET LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) LIABILITIES: Mortgage loan payable $ - $ 26,985,00226,844,048 $ - $ 26,985,00226,844,048 Notes payable - others - 27,41385,637 - 27,41385,637 Notes payable - related parties 347,083 33,544 - 380,62735,944 - 35,944 Accounts payable and accrued expenses 37,140 1,277,43335,410 1,134,957 - 1,314,5731,170,367 Tenant security deposits - 716,646732,202 - 716,646732,202 Deferred profit 3,157,718 - (3,157,718) - Deferred interest - 2,276,7562,212,612 - 2,276,7562,212,612 Option deposit - 4,500,000 - 4,500,000 $ 3,541,9413,193,128 $ 35,816,794 $(3,157,718)35,545,400 $ 36,201,017(3,157,718) $ 35,580,810 COMMITMENTS AND CONTINGENCIES - - - - PARTNERS' CAPITAL (DEFICIT) (2,893,540) (2,710,323)(2,319,611) (3,141,359) - (5,603,863)(5,460,970) TOTAL LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) $ 648,401873,517 $ 33,106,47132,404,041 $ (3,157,718) $ 30,597,154
See notes to combined financial statements. II-46 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) COMBINING BALANCE SHEETS JUNE 30, 1998 UNAUDITED
CITY UNICOM COMBINED PLANNED PARTNERSHIP BALANCE COMMUNITIES LTD. ELIMINATIONS SHEET ASSETS Property and equip- ment at cost: Building, includ- ing land of $4,123,888 $ - $ 36,555,058 $ (3,157,718)(a)$ 33,397,340 Furniture and equipment - 1,309,753 - 1,309,753 China, glassware, silverware and utensils - 41,713 - 41,713 $ - $ 37,906,524 $ (3,157,718) $ 34,748,806 Less accumulated depreciation and amortization - (7,812,616) - (7,812,616) $ - $ 30,093,908 $ (3,157,718) $26,936,190 Cash 306 1,128,314 - 1,128,620 Cash - restricted for tenants' se- curity deposits - 686,127 - 686,127 Real estate for sale - at cost - land 9,666 - - 9,666 Deferred management fees - related party 631,543 - - 631,543 Funds held in escrow - 619,913 - 619,913 Prepaid expenses - 336,773 - 336,773 Other assets 6,886 592,864 - 599,750 TOTAL ASSETS $ 648,401 $ 33,457,899 $ (3,157,718) $ 30,948,582
See notes to combined financial statements. II-47 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) COMBINING BALANCE SHEETS (CONTINUED) JUNE 30, 1998 UNAUDITED
CITY UNICOM COMBINED PLANNED PARTNERSHIP BALANCE COMMUNITIES LTD. ELIMINATIONS SHEET LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) LIABILITIES: Mortgage loan payable $ - $ 27,097,304 $ - $ 27,097,304 Notes payable - others - 40,812 - 40,812 Notes payable - related parties 849,987 - - 849,987 Accounts payable and accrued expenses 34,874 1,122,506 - 1,157,380 Tenant security deposits - 630,790 - 630,790 Deferred profit 3,157,718 - (3,157,718)(a) - Deferred interest - 2,355,572 - 2,355,572 Option deposit - 4,500,000 - 4,500,000 $ 4,042,579 $ 35,746,984 $ (3,157,718) $ 36,631,845 COMMITMENTS AND CONTINGENCIES - - - - PARTNERS' CAPITAL (DEFICIT) (3,394,178) (2,289,085) - (5,683,263) TOTAL LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) $ 648,401 $ 33,457,899 $ (3,157,718) $ 30,948,58230,119,840
See notes to combined financial statements. II-48 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING STATEMENTS OF OPERATIONS JUNE 30, 2001 AUDITED
CITY TUNICOM LLC COMBINED PLANNED STATEMENT OF COMMUNITIES ELIMINATIONS OPERATIONS REVENUES: Net sale assets $ 16,134 $ 17,505,001 $2,987,200 $ 20,508,335 Interest and other income 1,758 48,729 - 50,487 Forgiveness of interest - 2,226,737 - 2,226,737 Deferred profit on sale of land 2,987,200 - (2,987,200) - $ 3,005,092 $ 19,780,467 $ - $ 22,785,559 EXPENSES: General and administrative $ 604,640 $ 377,474 $ - $ 982,114 Taxes and insurance - 92,046 - 92,046 $ 604,640 $ 469,520 $ - $ 1,074,160 NET INCOME BEFORE DEPRECIATION, AMORTIZATION AND INTEREST $ 2,400,452 $ 19,310,947 $ - $ 21,711,399 OTHER EXPENSES: Interest $ - $ 272,309 $ - $ 272,309 NET(LOSS)INCOME $ 2,400,452 $ 19,038,638 $ - $ 21,439,090
See notes to combined financial statements. II-49 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING STATEMENTS OF OPERATIONS JUNE 30, 2000 AUDITED
CITY TUNICOM LLC COMBINED PLANNED STATEMENT OF COMMUNITIES ELIMINATIONS OPERATIONS REVENUES: Interest and other income $ 12,404 $ 1,428 $ - $ 13,832 Lease income - 5,744,412 - 5,744,412 $ 12,404 $ 5,745,840 $ - $ 5,758,244 EXPENSES: General and administrative $ (1,730) $ 1,398,629 $ - $ 1,398,899 Taxes and insurance - 624,761 - 624,761 $ (1,730) $ 2,023,390 $ - $ 2,021,660 NET INCOME BEFORE DEPRECIATION, AMORTIZATION AND INTEREST $ 14,134 $3,722,450 $ - $ 3,736,584 OTHER EXPENSES: Interest $ 12,767 $2,246,587 $ - $ 2,259,354 Depreciation and amortization - 1,057,963 - 1,057,963 $ 12,767 $3,304,550 $ - $ 3,317,317 NET (L0SS) INCOME $ 1,367 $ 417,900 $ - $ 419,267
See notes to combined financial statements. II-50 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING STATEMENTS OF OPERATIONS JUNE 30, 1999 UNAUDITEDAUDITED
CITY UNICOMTUNICOM LLC COMBINED PLANNED PARTNERSHIP STATEMENT OF COMMUNITIES LTD. ELIMINATIONS OPERATIONS REVENUES: Interest and other income $ 12,371 $ 6,447 $ - $ 18,818 Lease income - 5,352,291 - 5,352,291 $ 12,371 $ 5,358,738 $ - $ 5,371,109 EXPENSES: General and administrative $admini- strative 1,980 $ 1,215,325 $ - $ 1,217,305 Taxes and insurancein- surance 288 506,977 - 507,265 $ 2,268 $ 1,722,302 $ - $ 1,724,570 NET INCOME BEFORE DEPRECIATION, AMORTIZATION AND INTEREST $ 10,103 $ 3,636,436 $ - $ 3,646,539 OTHER EXPENSES: Interest $ 56,693 $ 2,249,918 $ - $ 2,306,611 Depreciation and amortization - 1,032,755 - 1,032,755 $ 56,693 $ 3,282,673 $ - $ 3,339,366 NET(LOSS)NET INCOME (LOSS) $ (46,590) $ 353,763 $ - $ 307,173
See notes to combined financial statements. II-49 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) COMBINING STATEMENTS OF OPERATIONS JUNE 30, 1998 UNAUDITED
CITY UNICOM COMBINED PLANNED PARTNERSHIP STATEMENT OF COMMUNITIES LTD. ELIMINATIONS OPERATIONS REVENUES: Rental income $ - $ - $ - $ - Interest and other income 52,340 61,794 - 114,134 Lease income - 4,755,196 - 4,755,196 $ 52,340 $ 4,816,990 $ - $ 4,869,330 EXPENSES: Dietary and re- sident ser- vices $ - $ - $ - $ - General and administra- tive 1,027 593,450 - 594,477 Marketing and ad- vertising - - - - Maintenance and utilities - - - - Taxes and insurance - 496,024 - 496,024 $ 1,027 $ 1,089,474 $ - $ 1,090,501 NET INCOME BEFORE DEPRECIATION, AMORTIZATION AND INTEREST $ 51,313 $3,727,516 $ - $ 3,778,829 OTHER EXPENSES: Interest $ 120,071 $2,504,341 $ - $ 2,624,412 Depreciation and amortization - 1,013,533 - 1,013,533 $ 120,071 $ 3,517,874 $ - $ 3,637,945 NET INCOME (LOSS) $ (68,758) $ 209,642 $ - $ 140,884
See notes to combined financial statements. II-50 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) COMBINING STATEMENTS OF OPERATIONS JUNE 30, 1997 UNAUDITED
CITY UNICOM COMBINED PLANNED PARTNERSHIP STATEMENT OF COMMUNITIES LTD. ELIMINATIONS OPERATIONS REVENUES: Rental income $ - $ 10,449,562 $ - $ 10,449,562 Interest and other income 36,694 53,341 - 90,035 $ 36,694 $ 10,502,903 $ - $ 10,539,597 EXPENSES: Dietary and resi- dent services $ - $ 3,156,811 $ - $ 3,156,811 General and admini- strative 3,699 1,045,994 - 1,049,693 Marketing and adver- tising - 256,120 - 256,120 Maintenance and utilities - 1,390,463 - 1,390,463 Taxes and in- surance 549 792,197 - 792,746 $ 4,248 $ 6,641,585 $ - $ 6,645,833 NET INCOME BEFORE DEPRECIATION, AMORTIZATION AND INTEREST $ 32,446 $ 3,861,318 $ - $ 3,893,764 OTHER EXPENSES: Interest $ 197,509 $ 2,293,324 $ - $ 2,490,833 Depreciation and amortization - 951,936 - 951,936 $ 197,509 $ 3,245,260 $ - $ 3,442,769 NET INCOME (LOSS) $ (165,063) $ 616,058 $ - $ 450,995
See notes to combined financial statements. II-51 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINING STATEMENTS OF PARTNERS' CAPITAL (DEFICIT) YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 1997 UNAUDITEDAUDITED
COMBINED STATEMENT CITY UNICOMTUNICOM LLC OF PARTNERS' PLANNED PARTNERSHIP CAPITAL COMMUNITIES LTD. ELIMINATIONS (DEFICIT) PARTNERS' CAPITAL (DEFICIT) - June 30, 1996 $ (6,183,509) $ 1,067,232 $ - $ (5,116,277) Net income (loss) - 1997 (165,063) 616,058 - $ 450,995 Distribution - (1,219,000) - (1,219,000) Contribution 30,000 2,038,139 - 2,068,139 PARTNERS' CAPITAL (DEFICIT) - June 30, 1997 $ (6,318,572) $ 2,502,429 $ - $ (3,816,143) Net Income (loss) - 1998 (68,758) 209,642 - 140,884 Distribution - (5,001,156) - (5,001,156) Contribution 2,993,152 - - 2,993,152 PARTNERS' CAPITAL (DEFICIT) - June 30, 1998 $ (3,394,178) $ (2,289,085) $ - $ (5,683,263) Net Income (Loss)(loss) - 1999 (46,590) 353,763 - 307,173 Distribution - (1,572,000) - (1,572,000) Contribution 547,228 796,999 - 1,344,227 PARTNERS' CAPITAL (DEFICIT)- June 30, 1999 $ (2,893,540) $ (2,710,323) $ - $ (5,603,863) Net Income (Loss)2000 1,367 417,900 - 419,267 Distribution - (848,936) - (848,936) Contribution 572,562 - - 572,562 PARTNERS' CAPITAL (DEFICIT)- June 30, 2000 $ (2,319,611) $ (3,141,359) $ - $ (5,460,970) Net income (loss) - 2001 2,400,452 20,235,875 - $ 22,636,327 Distribution (217,256) (16,200,000) - (16,417,256) PARTNERS' CAPITAL (DEFICIT) - June 30, 2001 $ (136,415) $ 894,516 $ - $ 758,101
See notes to combined financial statements. II-52 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINING STATEMENTS OF CASH FLOWS YEAR ENDED JUNE 30, 19992001 UNAUDITEDAUDITED
COMBINED CITY UNICOMTUNICOM LLC STATEMENT PLANNED PARTNERSHIP OF COMMUNITES LTD. ELIMINATIONS CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVA- LENTS Cash Flows from Opera- ing Activities: Interest received $ 12,37181,337 $ 6,44762,854 $ - $ 144,191 Cash paid - interest - (407,180) - (407,180) Cash paid - suppliers, employees and admini- strative expenses (35,724) (1,446,726) - (1,482,450) Net sale of property 25,800 43,188,890 - 43,214,690 Net Cash (Used) Pro- vided by Operating Activities $ 71,413 $ 41,397,838 $ - $ 41,469,251 Cash Flows from Invest- ing Activities: Partner distribution $ (217,256) $ (16,200,000)$ - $(16,417,256) Net Cash (Used) Provided by Investing Activities $ (217,256) $ (16,200,000)$ -$ (16,417,256) Cash Flows from Financ- ing Activities: Cash received (paid) - related party $ 145,537 $ 55,074 $ -$ 200,611 Cash (paid) received - - notes and mort- gages - (26,751,910) $ -$ (26,751,910) Net Cash Provided (Used) by Financ- ing Activities $ 145,537 $ (26,696,836)$ -$ (26,551,299)
See notes to combined financial statements. II-53 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) YEAR ENDED JUNE 30, 2001 AUDITED
COMBINED CITY TUNICOM LLC STATEMENT PLANNED OF COMMUNITIES ELIMINATIONS CASH FLOWS NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS $ (306) $ (1,498,997) $ - $(1,499,303) CASH AND CASH EQUIVA- LENTS BEGINNING OF YEAR 306 1,664,719 - 1,665,025 CASH AND CASH EQUIVA- LENTS END OF YEAR $ - $ 165,722 $ - $ 165,722
See notes to combined financial statements. II-54 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) YEAR ENDED JUNE 30, 2001 AUDITED
COMBINED CITY TUNICOM LLC STATEMENT PLANNED OF COMMUNITIES ELIMINATIONS CASH FLOWS Reconciliation of net profit (loss) to net cash provided (used) by operating activi- ties: Net income $2,400,452 $ 20,235,874 $ - $22,636,326 Adjustments to recon- cile to net cash provided (used) by operating activities: Decrease in Property, Plant & Equipment 9,666 24,486,653 - 24,496,319 Decrease in deferred Management fees 597,440 - - 597,440 Decrease in deferred Profit (2,987,200) - - (2,987,200) Decrease in un- Amortized interest - (2,212,612) - (2,212,612) Decrease in accounts payable and accrued expenses (35,410) (1,129,916) - (1,165,326) Decrease of notes receivable 79,579 - - 79,579 Decrease in prepaid expenses 6,886 152,710 - 159,596 Decrease in notes Payable - (134,871) - (134,871) Total Adjust- ments $ 2,329,039 $ 21,161,964 $ - $ 18,832,925 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 71,413 $ 41,397,838 $ - $41,469,251
See notes to combined financial statements. II-55 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING STATEMENTS OF CASH FLOWS YEAR ENDED JUNE 30, 2000 AUDITED
CITY TUNICOM LLC COMBINED PLANNED STATEMENT OF COMMUNITIES ELIMINATONS CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash Flows from Operating Activi- ties: Interest received $ - $ 1,428 $ - $ 1,428 Cash paid - interest (100,619) (2,218,594) - (2,319,213) Cash paid - suppliers, employees and admini- strative expenses - (2,024,381) - (2,024,381) Lease income - 5,677,155 - 5,677,155 Net Cash (Used) Provided by Opera- ting Activities $ (100,619) $ 1,435,608 $ - $ 1,334,989 Cash Flows from Invest- ing Activities: Capital expendi- tures - net $ - $ (160,480) $ - $ (160,480) Escrow funding - - - - Tenant security de- posits - net - (30,508) - (30,508) Partner contribution (distribution) (Net) 572,562 (848,936) - (276,374) Net Cash (Used) Provided by Investing Acti- vities $ 572,562 $ (1,039,924) $ - $ (467,362) Cash Flows from Fi- nancing Activities: Cash received (paid) - related party $ (471,943) $ (82,674) $ - $ (554,617) Cash (paid) received - notes and mortgages - (174,867) - (174,867) Net Cash Provided (Used) by Financ- ing Activities $ (471,943) $ (257,541) $ - $ (729,484)
See notes to combined financial statements. II-56 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) YEAR ENDED JUNE 30, 2000 AUDITED
CITY TUNICOM LLC COMBINED PLANNED STATEMENT OF COMMUNITIES ELIMINATONS CASH FLOWS NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS $ - $ 138,143 $ - $ 138,143 CASH AND CASH EQUIVA- LENTS BEGINNING OF YEAR 306 1,526,576 - 1,526,882 CASH AND CASH EQUIVA- LENTS END OF YEAR $ 306 $ 1,664,719 $ - $ 1,665,025
See notes to combined financial statements. II-57 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) YEAR ENDED JUNE 30, 2000 AUDITED
CITY TUNICOM LLC COMBINED PLANNED STATEMENT OF COMMUNITIES ELIMINATONS CASH FLOWS Reconciliation of net profit (loss) to net cash provided (used) by operating activities: Net income (loss) $ 1,367 $ 417,900 $ - $ 419,267 Adjustments to recon- cile net income (loss) to net cash provided used) by operating activities: Depreciation and amortization $ - $ 1,057,963 $ - $ 1,057,963 (Decrease) in interest payable (87,851) 27,993 - (59,858) (Increase) in prepaid expenses - 1,509 - 1,509 (Increase) in other assets and accounts receivable (12,405) 72,719 - 60,314 Increase (decrease) in accounts payable and accrued expenses (1,730) (142,476) - (144,206) Total Adjustments $ (101,986) $ 1,017,708 $ - $ 915,722 NET CASH PROVIDED (USED) BY OPERATING ACTIVI- TIES $ (100,619) $ 1,435,608 $ - $ 1,334,989
See notes to combined financial statements. II-58 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND TUNICOM LLC (A LIMITED LIABILITY CORPORATION) COMBINING STATEMENTS OF CASH FLOWS YEAR ENDED JUNE 30, 1999 AUDITED
CITY TUNICOM LLC COMBINED PLANNED ELIMI- STATEMENT OF COMMUNITIES NATIONS CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash Flows from Operating Activities: Interest received 12,371 6,447 - 18,818 Cash paid - interest (72,708) (2,226,537) - (2,279,245)(2,299,245) Cash paid - suppliers, employees and admini- strative expenses (2,268) (1,502,682) - (1,504,950) Lease income - 5,352,291 - 5,352,291 Net Cash (Used) Pro- videdProvided by OperatingOper- ating Activities $ (62,605)$ 1,629,519 $ - $ (1,566,914)1,566,914 Cash Flows from Invest- ing Activities: Capital expenditures -expenditures- net $ - $ (311,913) $ - $ (311,913) Escrow funding - - - - Tenant security deposits - net - 36,997 - 36,997 Partner contribution (distribution) (Net)$ 547,226 $ (775,001) $ - $ (227,775) Net Cash (Used) Provided by Investing ActivitiesActi- vities $ 547,226 $ (1,049,917) $ - $ (502,691) Cash Flows from Financ- ing Activities: Cash received (paid) - related party $ (484,621) $ 30,000 $ - $ (454,621) Cash (paid) received - - notes and mort- gagesmortgages - (211,340) - $ (211,340) Net Cash Provided (Used) by Financ- ing Activities $ (484,621) $ (181,340) $ - $ (665,961)
See notes to combined financial statements. II-53II-59 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) YEAR ENDED JUNE 30, 1999 AUDITED UNAUDITED
CITY TUNICOM LLC COMBINED CITY UNICOMPLANNED ELIMI- STATEMENT PLANNED PARTNERSHIP OF COMMUNITIES LTD. ELIMINATIONSNATIONS CASH FLOWS NET INCREASE (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS $ - $ 398,262 $ - $ 398,262 CASH AND CASH EQUIVA- LENTS BEGINNING OF YEAR 306 1,128,314 - 1,128,620 CASH AND CASH EQUIVA- LENTS END OF YEAR $ 306 $ 1,526,576 $ - $ 1,526,882
See notes to combined financial statements. II-54II-60 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD.TUNICOM LLC (A LIMITED PARTNERSHIP)LIABILITY CORPORATION) COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) YEAR ENDED JUNE 30, 1999 UNAUDITED
COMBINED CITY UNICOM STATEMENT PLANNED PARTNERSHIP OF COMMUNITIES LTD. ELIMINATIONS CASH FLOWS Reconciliation of net profit (loss) to net cash provided (used) by operating activi- ties: Net income (loss) $ (46,590) $ 353,763 $ - $ 307,173 Adjustments to recon- cile net income (loss) to net cash provided (used) by operating activities: Depreciation and amortization $ - $ 951,325 $ - $ 951,325 (Decrease) in interest payable (18,283) 10,367 - (7,916) (Increase) in prepaid expenses - 94,444 - 94,444 (Increase) in other assets and accounts receivable - 64,693 - 64,693 Increase in ac- counts payable and accrued expenses 2,268 154,927 - 157,195 Total Adjust- ments $ (16,015) $ 1,275,756 $ - $ 1,259,741 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ (62,605) $ 1,629,519 $ - $ 1,566,914
See notes to combined financial statements. II-55 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) COMBINING STATEMENTS OF CASH FLOWS YEAR ENDED JUNE 30, 1998 UNAUDITEDAUDITED
CITY UNICOMTUNICOM LLC COMBINED PLANNED PARTNERSHIP STATEMENT OF COMMUNITIES LTD. ELIMINATONS CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash Flows from Operating Activi- ties: Cash from customers/ tenants/sales $ - $ - $ - $ - Interest received - - - - Cash paid - interest (1,418,655) (2,660,193) - (4,078,848) Cash paid - suppliers, employees and admini- strative expenses (5,043) (726,051) - (731,094) Lease income - 4,676,201 - 4,676,201 Net Cash (Used) Provided by Opera- ting Activities $ (1,423,698) $ 1,289,957 $ - $ (133,741) Cash Flows from Invest- ing Activities: Capital expendi- tures - net $ - $ (133,920) $ - $ (133,920) Escrow funding - - - - Tenant security de- posits - net - - - - Partner contribution (distribution) 2,993,152 (5,001,156) - (2,008,004) Option deposit - 4,500,000 - 4,500,000 Net Cash Used by Investing Acti- vities $ 2,993,152 $ (635,076) $ - $ 2,358,076 Cash Flows from Fi- nancing Activities: Cash received (paid) - related party $ (1,569,604) $ - $ - $ (1,569,604) Cash (paid) received - notes and mortgages - (399,333) - (399,333) Other - (31,941) - (31,941) Net Cash Provided (Used) by Financ- ing Activities $ (1,569,604) $ (431,274) $ - $ (2,000,878)
See notes to combined financial statements. II-56 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) YEAR ENDED JUNE 30, 1998 UNAUDITED
CITY UNICOM COMBINED PLANNED PARTNERSHIP STATEMENT OF COMMUNITIES LTD. ELIMINATONS CASH FLOWS NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (150) $ 233,607 $ - $ 233,457 CASH AND CASH EQUIVA- LENTS BEGINNING OF YEAR 456 904,707 - 905,163 CASH AND CASH EQUIVA- LENTS END OF YEAR $ 306 $ 1,128,314 $ - $ 1,128,620
See notes to combined financial statements. II-57 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) YEAR ENDED JUNE 30, 1998 UNAUDITED
CITY UNICOM COMBINED PLANNED PARTNERSHIP STATEMENT OF COMMUNITIES LTD. ELIMINATONS CASH FLOWS Reconciliation of net profit (loss) to net cash provided (used) by operating activities: Net income (loss) $ (68,758) $ 209,642 $ - $ 140,884 Adjustments to recon- cile net income (loss) to net cash provided used) by operating activities: Depreciation and amortization $ - $ 924,192 $ - $ 924,192 (Decrease) in interest payable (1,674,363) - - (1,674,363) (Increase) in pre- paid expenses - (162,326) - (162,326) (Increase) in other assets and accounts receivable - (397,472) - (397,472) Increase in accounts payable and accrued expenses 319,423 715,921 - 1,035,344 Total Adjustments $ (1,354,940) $ 1,080,315 $ - $ (274,625) NET CASH PROVIDED (USED) BY OPERATING ACTIVI- TIES $ (1,423,698) $ 1,289,957 $ - $ (133,741)
See notes to combined financial statements. II-58 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) COMBINING STATEMENTS OF CASH FLOWS YEAR ENDED JUNE 30, 1997 UNAUDITED
CITY UNICOM COMBINED PLANNED PARTNERSHIP ELIMI- STATEMENT OF COMMUNITIES LTD. NATIONS CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash Flows from Operating Activities: Cash from customers/ tenants/sales $ - $ 10,421,519 $ - $ 10,421,519 Interest received - 53,341 - 53,341 Cash paid - interest - (2,223,519) - (2,223,519) Cash paid - suppliers, employees and admini- strative expenses (2,393) (6,778,558) - (6,780,951) Net Cash (Used) Provided by Oper- ating Activities $ (2,393) $ 1,472,783 $ - $ 1,470,390 Cash Flows from Invest- ing Activities: Capital expenditures- net $ - $ (107,567) $ - $ (107,567) Escrow funding - (22,764) - (22,764) Tenant security deposits - net - (54,476) - (54,476) Partner distribution - (1,219,000) - (1,219,000) Investing Activi- ties $ - $ (1,403,807) $ - $ (1,403,807) Cash Flows from Financ- ing Activities: Cash received - related party $ 2,416 $ - $ - $ 2,416 Cash paid - notes and mortgages - (227,513) - (227,513) Other - (898) - (898) Net Cash Provided (Used) by Financ- ing Activities $ 2,416 $ (228,411) $ - $ (225,995) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 23 $ (159,435) $ - $ (159,412) CASH AND CASH EQUIVA- LENTS BEDGINNING OF YEAR 433 1,064,142 - 1,064,575 CASH AND CASH EQUIVA- LENTS END OF YEAR $ 456 $ 904,707 $ - $ 905,163
See notes to combined financial statements. II-59 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) YEAR ENDED JUNE 30, 1997 UNAUDITED
CITY UNICOM COMBINED PLANNED PARTNERSHIP STATEMENT OF COMMUNITIES LTD. ELIMINATIONS CASH FLOWS Reconciliation of net profit (loss) to net cash provided (used) by operating acti- vities: Net income (loss) $ (165,063)(46,590) $ 616,058353,763 $ - $ 450,995307,173 Adjustments to reconcile net profitsincome (loss) to net cash providedprov- ided (used) by opera- ting activities:operating activ- ities: Depreciation and amortization $ - $ 951,936951,325 $ - $ 951,936 Increase (de- crease)951,325 (Decrease) in in- terest payable 185,138 (55,355)interest pay- able (18,283) 10,367 - 129,783 Decrease in real estate held for sale - - - -(7,916) (Increase) in prepaidpre- paid expenses - 11,41594,444 - 11,41594,444 (Increase) De- crease in other assets and ac- countsaccounts receiv- able - (69,868)64,693 - (69,868) (Decrease)increase64,693 Increase in acounts pay- ableaccounts payable and accrued expenses (22,468) 18,5972,268 154,927 - (3,871)157,195 Total Adjust- ments $ 162,670(16,015) $ 856,7251,275,756 $ - $ 1,019,3951,259,741 NET CASH PROVIDED (USED) BY OPERA- TING ACTIVITIES $ (2,393)(62,605) $ 1,472,7831,629,519 $ - $ 1,470,3901,566,914
See notes to combined financial statements. II-60 CITY PLANNED COMMUNITIES (A PARTNERSHIP) AND UNICOM PARTNERSHIP LTD. (A LIMITED PARTNERSHIP) COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) YEAR ENDED JUNE 30, 1997 UNAUDITED SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING AND INVESTING ACTIVITIES: (A) In December of 1996, $30,000 of notes due to partners of City Planned Communities were contributed to the capital of the Company. See notes to combined financial statements. II-61 ITEM 8. SUPPLEMENTARY DATA (a) Selected quarterly financial disclosure date. Not required. (b) Information on the effects of changing prices. Not applicable. ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable II-62 PART III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT The following information is provided with respect to each general partner and officer of Registrant. BUSINESS EXPERIENCE DURING NAME AGE PAST FIVE YEARS Stanley R. Rosenthal 7072 General Partner; President and Chief Executive Officer of predecessor All-State Properties, Inc. since 1971 Managing Partner of Unicom Partnership Ltd.Tunicom LLC. since 1989 President of SRR Consulting Corp. and President of SRR Management Corp. since July, 1997 ITEM 11. EXECUTIVE COMPENSATION The following table sets forth aggregate cash compensation paid or accrued by the Registrant to the General Partner during the twelve months ended June 30, 19992001 NAME OF INDIVIDUAL OR REGISTRANT'S SHARE NUMBER OF PERSONS CAPACITIES OF CASH IN GROUP IN WHICH SERVED COMPENSATION Stanley R. Rosenthal General Partner $ -0- All officers as a group (1 person) $ -0- Effective August 1, 1995 with HUD approval, Unicom Partnership Ltd.Tunicom LLC. began to self manage its retirement community. (See Item 1(b)(1)(i)(a)). A management fee of 4% of total income is being paid to the partners assuming managerial responsibility. The General Partner of the Registrant (Stanley R. Rosenthal) has been functioning as Managing Partner of UnicomTunicom and is retaining that responsibility, as well as management of the facility. Registrant's share of Mr. Rosenthal's portion of the management fee is approximately $86,000$90,000 per year. III-1 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT The following table sets forth as of June 30, 19992001 information concerning: (i) all the persons who are known to the Registrant to be the beneficial owners of more than 5% of the units of limited partnership interest; and (ii) the beneficial ownership of limited partnership units by the General Partner. AMOUNT BENEFICIALLY PERCENTAGE TITLE OF CLASS NAME & ADDRESS OWNED OF CLASS Limited J.W. Sopher Partnership 425 E. 61 Street Units New York, N.Y. 165,000 (1) 5.3% Limited Stanley R. Rosenthal Partnership c/o All-State Units Properties L.P. P.O. Box 5524 Ft. Lauderdale, FL 156,474 5.0% (1) Included 48,000 units owned directly and 117,000 units owned beneficially (67,000 units owned by a pension trust and 50,000 units owned by a corporation in which Mr. Sopher holds a 50% interest and in which Mr. Sopher holds shared voting and dispositive powers). III-2 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS In consideration of cash advances made and services rendered by certain individuals to Unicom, UnicomTunicom, Tunicom agreed to distribute 26.76% (including 5% to the general partner of the Company) of any of its cash that becomes available for distribution to those individuals. The balance of any cash that becomes available for distribution up to $13,351,210 will be distributed to the Company and Newnel Partnership for the benefit of CPC. After $13,351,210 is disbursed, remaining cash will be distributed 26.76% to the aforementioned individuals and the remainder as follows: 1.34% to F. Trace, Inc., the former general partner of UnicomTunicom 49.33% to Newnel Partnership 3.60% to certain individuals who made cash advances on behalf of the Company 45.73% to the Company 100.00% Subsequently, of the holders of the 26.76%, individuals receiving 23.27% were admitted as limited partners of Unicom,Tunicom, with the 3.49% remaining as non-partner distributees. Restating the above to reflect the admission of the aforesaid individuals as limited partners, the cash flow available for distribution after the payment of the $13,351,210 will be distributed as follows: 3.49% to the non-partner distributees As to the partners: 1.00% to F. Trace, Inc., the former general partner of UnicomTunicom 23.27% to the newly admitted limited partners 36.12to36.12% to Newnel Partnership 36.12% to the Company (including 3.60% given to certain indivi- duals who made cash advances to UnicomTunicom on behalf of the Company 100.00% The amount of the distribution to be received by the Company is the same under both of the above calculations. In addition, CPC assigned 9.00% of any of its cash that becomes available for distribution to certain individuals for funds advanced by them to CPC. Certain individuals advanced funds to the company.Company. In consideration of those advances, the Company assigned to those individuals 10.23% of distributions received by it from CPC, after deducting the amounts necessary to repay the funds advanced by them. III-3 PART IV ITEM 14. EXHIBITS FINANCIAL STATEMENT SCHEDULE AND REPORTS ON FORM 8-K PAGE (a) 1. Financial Statements included in Part II of this report: FINANCIAL STATEMENTS: Registrant: Balance Sheets as of June 30, 19992001 and 19982000 II-14 Statements of Operations for the years ended June 30, 1999, 19982001, 2000, and 19971999 II-15 Statements of Changes in Partners' Capital (Deficit) for the years ended June 30, 1999, 19982001, 2000 and 19971999 II-16 Statements of Cash Flows for the years ended June 30, 1999, 19982001, 2000 and 19971999 II-17/18 Notes to Financial Statements for the years ended June 30, 1999, 19982001, 2000 and 19971999 II-19/29 Combined Financial Statements of City Planned Communities (a partnership) and UnicomTunicom Partnership Ltd. (a limited partnership) for the years ended June 30, 2001, 2000 and 1999 1998 and 1997 II-32/61 2. Financial Statement Schedules Included in Part IV of this report: Schedule X - Supplementary Income Statement Information at June 30, 1999, 1998 and 1997 (Registrant) IV-5 All other schedules are omitted, as the required information is not applicable or the information is presented in the financial statements or related notes. IV-1 (b) (1) REPORTS ON FORM 8-K PAGE NO. OR INCORPORATION (C) EXHIBITS BY REFERENCE (3) Limited Partnership Incorporated by reference Agreement, All-State to the Registration Properties L.P. Statement of Registrant No. 2-90988 (4) (ii) Instruments Defining Rights of Security Holders, included Debentures: 4% Convertible Sub- Incorporated by reference ordinated Debenture, to Form 10-K for the year due 1989 ended June 30, 1985 (10)(iii) (A) Material Contracts: a. Stock Purchase Incorporated by reference agreement dated to the Registration April 18, 1984 Statement of Registrant between All-State No. 2-90988 Properties, Inc. and Security Management Corp. b. Loan Agreement Incorporated by reference between All-State to Form 10-K for the Properties, L.P. and year ended June 30, 1987 City Nat'l Bank of Florida dated April 20, 1987 - $2,400,000 c. UnicomTunicom Partnership Incorporated by reference Ltd. Limited Partner- to Form 10-K for the ship Agreement dated year ended June 30, 1987 September 23, 1986 d. Loan Agreement Incorporated by reference between UnicomTunicom Partner- to Form 10-K for the year ship Ltd. and Puller ended June 30, 1987 Mortgage Associates, Inc. dated 4/23/87 - $27,749,100 e. Management Contract Incorporated by reference between UnicomTunicom Partner- to Form 10-K for the year ship Ltd. and Basic ended June 30, 1987 American Medical Inc. dated Sept. 29, 1986 IV-2 f. Contract of Sale Incorporated by reference between CPC and to Form 8-K dated Centex Real Estate July 7, 1989 Corporation dated May 2, 1989 g. Management Contract Incorporated by reference between UnicomTunicom Partner- to Form 10-K for the year ship Ltd. and Senior ended June 30, 1989 Lifestyle Corporation dated 7/1/89 h. Settlement Agreement Incorporated by reference between CPC and MFM Group to Form 10-K for the year dated March 28, 1990 ended June 30, 1990 i. Settlement Agreement Incorporated by reference between UnicomTunicom and MFM to Form 10-K for the year Group dated March 28, 1990 ended June 30, 1990. j. Amendment to Management Incorporated by reference Contract between UnicomTunicom and onto Form 10-K for the year Senior Lifestyle Corporation ended June 30, 1992 dated as of Jan. 1, 1992 k. Management Agreement Incorporated by reference between UnicomTunicom and Stanley onto Form 10-K for the year R. Rosenthal, Managing ended June 30, 1995 Partner of Owner dated August 1, 1995 l. Employment Agreement Incorporated by reference between UnicomTunicom and Stanley onto Form 10-K for the year R. Rosenthal, effective ended June 30, 1995 August 1, 1995 m. Lease and option to pur- chase agreements between Incorporated by reference chase agreements between Unicom and Care- to Form 8-K dated October MatrixTunicom and CareMatrix 10, 1997 Corporation effective 10, 1997 as of July 1, 1997 n. Disposition of assets in Incorporated by reference accordance with Option to Form 8-K dated August Agreement on August 16, 2000 16, 2000 (11) Exhibits indicating computa- IV-6IV-5 tion of earnings per unit for the years ended June 30, 1998, 19972001, 2000 and 1996.1999. IV-3 (22) Subsidiaries of the Registrant: State of Incorporation Name or Organization Ownership Wimbledon Develop- Florida 99% ment Ltd. (d) NONE Signature Page IV-7IV-6 IV-4 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) SCHEDULE X - SUPPLEMENTAL INCOME STATEMENT INFORMATION CHARGED TO COST AND EXPENSES JUNE 30, 1999, 1998 AND 1997 UNAUDITED 1 9 9 9 1 9 9 8 1 9 9 7 Maintenance and repairs $ - $ 708 $ 9,570 Depreciation and amortiza- tion of intangible assets - - - Taxes, other than payroll and income taxes - 375 1,192 Advertising cost - - - $ - $ 1,083 $ 10,762 IV-5 ALL-STATE PROPERTIES L.P. (A LIMITED PARTNERSHIP) (NOTE 1A) EXHIBITS INDICATING THE COMPUTATION OF EARNINGS PER UNIT YEARS ENDED JUNE 30, 2001, 2000 AND 1999 1998 AND 19972 0 0 1 2 0 0 0 1 9 9 9 1 9 9 8 1 9 9 7 Computation of pri- mary earnings per unit: Units issued 3,118,303 3,118,303 3,118,303 Add: Unit equivalent (incremental units): Debentures conv- ertible at $1.00 - - - Debentures conv- ertible at $3.00 31,952 31,952 31,952 3,150,255(A) 3,150,255(A) 3,150,255(A) Net Loss beforeIncome (Loss) Before Extraordinary Items $ (235,948)6,843,331 $ (151,977)(174,197) $ (141,963)(235,948) Computation of Fully diluted lossincome (loss) per unit Before Extra- ordinary Items $ (0.08)2.19 $ (0.05)(B)$ (0.05)(B)(0.08) Net LossIncome (Loss) After Extraordinary Items $ (235,948)6,843,331 $ (151,977)(174,197) $ (141,963)(235,948) Computation of Fully diluted lossincome (loss) per unit after ExtraordinaryExtra- ordinary Items $ (0.08)(B)2.19 $ (0.05)(B) $ (0.05)(B)(0.08) (A) Weighted average number of units outstanding (B) Computation based on the modified treasury stock method as the number of units obtainable upon exercise of outstanding options in the aggregate exceeds 20% of the units outstanding at the end of the period. See notes to financial statements. IV-6IV-5 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ALL-STATE PROPERTIES L.P. By: STANLEY R. ROSENTHAL General Partner Date: October 25, 199917, 2001 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacity and on the date indicated. General Partner October 25, 199917, 2001 STANLEY R. ROSENTHAL (Chief Executive Officer) DATE IV-7IV-6