Company: CLPR
Filing Date: 2025-04-08
Form Type: 8-K
Source: 0001437749-25-011420
Chunk: 1

Company: Clipper Realty Inc.
Filing Date: 2025-04-08
Form: 8-K
Item: Item 2.05
Chunk 1
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Item 2.05

Costs Associated with Exit or Disposal Activities

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The Information disclosed in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.05.

Item 2.06. Material Impairments.

As a result of the transaction contemplated by the Agreement described in Item 1.01 of this Current Report on Form 8-K, the Company has determined that the financial results for the quarter ended March 31, 2025 will include an impairment of certain assets related to the Property, primarily Investment in Real Estate. The Company currently estimates that the range of such impairment charges for Investment in Real Estate assets could be from approximately $32.0 million to approximately $34.0 million. The impairment charges that the Company expects to incur in connection with the sale of the Property are subject to a number of assumptions, and the actual amount of impairment charges may differ materially from the range estimated by the Company. Updates regarding these impairment charges will be provided in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2025. The Information disclosed in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.06.

Cautionary Note Concerning Forward-Looking Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding: the amount of consideration expected to be received by the Company as a result of the sale of the Property described in Item 1.01 above; the fees, expenses and costs associated with such transaction contemplated by the Agreement; estimated range of impairment charges that the Company may incur as a result of the sale of the Property as described in Item 2.06 above; as well as the events, circumstances and assumptions that underly these matters as described in this Current Report on Form 8-K. These forward-looking statements are based on the Company’s expectations and assumptions as of the date of this Current Report on Form 8-K and inherently involve significant risks and uncertainties. The Company’s actual results, the timing of events, and costs, expenses, charges, and liabilities associated with the activities described in this Current Report on Form 8-K may differ materially from those anticipated by such forward-looking statements because of many factors not currently anticipated or contemplated by the Company, including, but not limited to