FINANCIAL RESULTS
Albanese Cormier Holdings, LLC and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended December 31, 2025 and 2024
14. Risk Management The Company is exposed to various risks of loss related to torts; thefts of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Company maintains commercial insurance coverage covering each of those risks of loss. Management believes such coverage is sufficient to preclude any significant uninsured losses to the Company. 15. Related Party Transactions The Company sells residential real estate to company owned by an employee. Income associated with the sale of residential real estate was approximately $171,600 and $772,200 for the years ended December 31, 2025 and 2024, respectively.
The Company entered into an agreement to perform certain managerial and administrative functions for Edison Plaza Partners, LLC. Payments for services from this related entity are based on a percentage of gross rents due from various tenants. The Company leases certain real property from Edison Plaza Partners, LLC. This entity has been identified as a variable interest entity subject to consolidation with the Company and has been eliminated in the consolidated financial statements. See Note 2 for additional information. The Companies' member provides personal guarantees on certain loans. Commitments and Contingencies The Company is involved in various commitments and contingencies that arise in the normal course of operations. For additional information, see Note 1 - Concentration of Credit Risk, and Note 12 – Long-Term Debt. The Company issues letters of intent signifying a willingness to negotiate for acquisitions or dispositions during the ordinary course of our business. Such letters of intent and other arrangements are non-binding to all parties unless and until a definitive contract is entered into by the parties. Even if definitive contracts relating to the acquisition or disposition of property are entered into, these contracts generally provide the purchaser a time period to evaluate the property and conduct due diligence. The purchaser, during this time, will have the ability to terminate a contract without penalty or forfeiture of any deposit or earnest money. No assurance can be provided that any definitive contracts will be entered into with respect to any matter covered by letters of intent, or that we will consummate any transaction contemplated by a definitive contract. Additionally, due diligence periods for property transactions are frequently extended as needed. An acquisition or disposition of property becomes probable at the time the due diligence period expires and the definitive contract has not been terminated. Our risk is then generally extended only to any earnest money deposits associated with property acquisition contracts, and our obligation to sell under a property sales contract.
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