3.	Liquidation Basis of Accounting

Net assets in liquidation were $0.75 million and $10.08 million as of April 30, 2016 and July 31, 2015, respectively, a decrease of $9.33 million. The decrease was primarily due to the Company’s payment of a liquidating distribution to stockholders on April 29, 2016 of approximately $8.38 million.

As of April 30, 2016, total assets consisted of cash and cash equivalents of $3.99 million and other assets of $0.05 million. The decrease in the realizable value of our assets for the three and nine month periods ending April 30, 2016 was primarily due to the Company’s payment of the liquidating distribution on April 29, 2016. Based on the Company’s expectation that we do not expect to receive any additional material consideration for our remaining IQstream assets, we have assigned no value 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 April 30, 2016, liabilities consisted of our reserve for estimated costs during the Dissolution period of $1.7 million and other liabilities of $1.59 million. For additional information concerning other liabilities, see Note 5. “Income Taxes.”

During the three months ended April 30, 2016, the Company reclassified certain amounts among the categories of costs shown in the table below, but did not adjust its estimated settlement amounts of liabilities. During the nine months ended April 30, 2016, the Company adjusted its estimated settlement amounts of liabilities, resulting in a net decrease to net assets of $0.95 million. The adjustments were primarily related to the increase in the reserve for estimated costs of $1.44 million as a result of the extension of the Dissolution period by up to two additional years, offset in part by a decrease in the Company’s previously reserved estimated costs during the Dissolution period of $0.44 million and a decrease in accrued expenses of $0.05 million.

The increase of $1.44 million as a result of the extension of the Dissolution period assumes a final dissolution date of March 7, 2018, and is comprised of estimated compensation and consulting costs of $0.45 million, other expenses associated with wind down activities of $0.41 million, insurance of $0.22 million, and professional fees of $0.36 million. The decrease in the Company’s previously reserved estimated costs during the Dissolution period relates to estimated costs for the period through March 7, 2016, and is comprised of other expenses associated with wind down activities of $0.35 million, compensation and consulting costs of $0.05 million and professional fees of $0.04 million. The decrease in other expenses associated with wind down activities for the period through March 7, 2016 is primarily related to the expiration of the statute of limitations relating to potential tax liabilities in certain state jurisdictions. The decrease in compensation and consulting costs and professional fees for the period through March 7, 2016 is primarily related to a determination that those expenditures are no longer expected to be incurred.

The table below summarizes the reserve for estimated costs during the Dissolution period as of April 30, 2016 and July 31, 2015 (in thousands):


	April 30, 2016		July 31, 2015
Compensation	$	602	$	376
Professional fees		358		568
Other expenses associated with wind down activities		528		646
Insurance		217		186

	$	1,705	$	1,776

These estimated costs will continue to be reviewed periodically and adjusted as appropriate.

As of February 29, 2016, all surviving representations and warranties under the Purchase Agreement had expired without Tyngsborough Commons asserting any indemnification claims against the Company. Accordingly, the Company has not recorded, nor does it expect to record, any liability in connection with those obligations.