CUEN – Cuentas Releases Annual Financial Reports Reflecting Improved Business Transition Results, Revenues and Profitability - Seite 2

Cuentas investments in real estate developments in Florida, Cuentas Casa, demonstrates a strategic focus on sustainable housing solutions and expansion in the region's market. One notable venture includes the acquisition of a 6% equity interest in Lakewood Village, a pioneering affordable multi-family project in Lake Worth. Utilizing RENCO Structural Building System, known for its hurricane-resistant properties, Lakewood Village introduces innovative construction technology to the US market. Additionally, a supply agreement with Renco USA secures access to patented building materials for future sustainable housing projects, enhancing the Company's competitive edge in South Florida's real estate landscape. The launch of the Lakewood Village project garnered attention from city officials and has attracted national and international media coverage due to its groundbreaking application of advanced building technologies. Notably, the development has achieved full rental capacity, signaling its success within the market.

In parallel, the Company's collaboration with Brooksville Development Partners signals its commitment to further development in the region. The acquisition of a 21.8-acre site for a residential apartment community underscores the Company's proactive approach to land acquisition and project development. Despite financing considerations and potential changes in ownership structure, the Company's endeavors reflect a concerted effort to capitalize on Florida's real estate opportunities while prioritizing innovation and sustainability.

A mortgage held with Republic Bank of Chicago, initially of $3.05 million, was adjusted to $3.055 million on January 27, 2024. Also, a $500,000 Loan Extension Agreement was made with ALF Trust on 09/28/2023, to support the necessary Promissory Note for the interest reserve and fees, as well as the Company's working capital needs.

On March 13, 2024, the Company, holding 63% of Brooksville Development Partners (“Brooksville”), agreed to sell the project for $7.2 million. Cuentas initially invested $2 million in the purchase and approximately $65k in engineering costs, totaling $5.05 million. The buyer deposited $100k in escrow, non-refundable, with 60 days to finalize the purchase. This sale of the Brooksville property unlocks substantial liquidity, reinforcing Cuentas' commitment to self-sustainability and strategic expansion. Proceeds will bolster the company's capital reserves and further enhance its flagship Fintech and Mobile Telecommunications products.