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6 | SUN LAKES LIFESTYLES | MARCH 2021 | Narrative for December Financials Net Loss for December was $2,213 bringing the YTD/Year End Loss to $78,362 and is $100,103 worse than Budget for the month and $78,342 worse than Budget for the year. For the month of December, the negative Budget variances were primarily due to Bad Debt Expense of $106,862 which was $104,362 worse than budgeted. Total year end Income (Revenue) was $13,041,116 and was $2,101,166 less than Budget. Reduced revenues are primarily due the Restaurant closure, slightly less golf revenues, and reduced recognition of Homeowner Reserve assessments, required by FASB 606. Reduced and below Budget, income for the year has been offset by significantly reduced spending in the amount of $2,022,842. Reduced spending is primarily due to the closure of the restaurant and below Budget Reserve spending. The Restaurant reopened on Nov. 18 for curbside pickup and veranda dining, with veranda dining currently suspended, but delivery now available. Restaurant financial activity for December and full year 2020 is depicted in the supplementary Restaurant and Lounge – Actual vs Budget Report. Restaurant activity is now pick up and home delivery only due to both Riverside County and State requirements. December Balance Sheet: Total Assets were up slightly from November at $13,087,680 including Cash and Investments of $12,474,314. Total Liabilities were also up slightly including Current Liabilities, net of reserves, deposits, and prepaid owners, that are up slightly from November at $80,192.93. CONSOLIDATED INCOME STATEMENT - ACTUAL VS BUDGET MONTH ENDING DEC. 31, 2020

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