Liquidation Basis of Accounting

Net assets in liquidation were $10.08 million as of October 31, 2015 and July 31, 2015.

As of October 31, 2015, assets consisted of cash and cash equivalents of $10.81 million, the Tyngsborough Land valued at $2.5 million and other assets of $0.05 million. Based on our current best estimate of the realizable value of the Company’s remaining assets relating to the IQstream Business, we have assigned a value of $0 to these assets for purposes of the Statement of Net Assets. In addition, due to the uncertainty surrounding our ability to liquidate our Tejas investment, we have determined that we cannot reasonably provide an estimate of the net realizable value of our Tejas investment at this time and, accordingly, have assigned no value to the Tejas investment for purposes of the Statement of Net Assets.

As of October 31, 2015, liabilities consisted of accounts payable of $0.24 million, accrued expenses of $0.05 million, our reserve for estimated costs during the Dissolution period of $1.4 million and other liabilities of $1.59 million. For additional information concerning other liabilities, see Note 5. “Income Taxes.”

The Company accrued estimated costs expected to be incurred in carrying out the Plan of Dissolution. Under Delaware law, the Dissolution period will last for a minimum of three years from the filing of the Certificate of Dissolution (or March 7, 2016), and the Company’s reserve for estimated costs during the Dissolution period assumes such period will end on March 7, 2016. The Company was required to make certain estimates and exercise judgment in determining the accrued costs of liquidation as of October 31, 2015 and July 31, 2015.

The table below summarizes the reserve for estimated costs during the Dissolution period as of October 31, 2015 and July 31, 2015 (in thousands):


	October 31, 2015		July 31, 2015
Compensation	$	299	$	376
Professional fees		516		568
Other expenses associated with wind down activities		587		646
Insurance		—		186

	$	1,402	$	1,776

For the three months ended October 31, 2015, the Company did not make any adjustments to its estimate of the realizable value of assets or its estimated settlement of liabilities and there was no change in net assets for the three months ended October 31, 2015.