What are the key assumptions underlying the depreciation and amortization calculations for Sonesta Simply Suites?

Property and equipment are stated at cost less accumulated depreciation. The cost of improvements that extend the life of property and equipment are capitalized. Repairs and maintenance charges are recognized as an expense as incurred.

| Net income (loss) $ (2,913) $ 1,477 $ (3,186) Adjustments to reconcile net loss to cash provided by (used in) operating activities: 489 1,691 3,506 Depreciation and amortization 489 1,691 3,506 Amortization of key money and contract costs 1,514 396 7 Amortization of contract liabilities 192 1,497 713 Deferred income taxes 1,112 (1,819) 654 Other income (expense), net 2 1 9 486 Other income (expense), net 3,111 (942) (50 Change in current assets and liabilities (3,111) (942) (50 Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts receivable, net (3,111) (942) (50 Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts payable (2,132) | | | 2024 | 2023 | (Restated) | | 2022 | | | | Adjustments to reconcile net loss to eash provided by (used in) operating activities: 489 1,691 3,506 Depreciation and amorization 1,514 396 7 Amortization of Centract liabilities 192 1,497 713 Deferred income taxes - 1 1 Other income (expense), net - - 846 Loss (gain) on sale of hotel 153 (160) - Change in current assets and liabilities (3,111) (942) (50) Accounts receivable, net (3,111) (942) (50) Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts program liability 139 - - Accrued compensation, accrued expenses, and other liabilities 893 (2,777) 3,600 Net cash provided by (used in) operating activities (735) (433) (588) Proceeds from sale of hotel - 550 - Capital expenditures (735) (43) | Cash flows from operating activities: | | | | | | | | | | Depreciation and amortization Asy 1,691 3,506 Amortization of key money and contract costs 1,514 396 77 Amortization of contract liabilities 192 1,497 713 Deferred income taxes - 1 1 Provision (Recovery) of doubtful accounts 1,112 (1,819) 654 Other income (expense), net - - 846 Loss (gain) on sale of hotel 153 (160) - Change in current assets and liabilities Accounts receivable, net (3,111) (942) (50) Pepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts payable (434) (436) (682) Loyalty program liability 139 - - Accrued compensation, accrued expenses, and other liabilities 893 (2,777) 3,600 Net cash provided by (used in) operating activities (735) (433) (358) Proceeds from sale of hotel (10,200) (10,200) (10,200) Cash flows from investing activities (735) (433) (358) Proceeds from sale of hotel (12) - (264) Disbursement of notes receivable (12) - (264) Disbursement of notes receivable (12) - (264) Disbursement of notes receivable (12) - (264) Collection of notes receivable (14) 3.9 5.4 Cash flows from financing activities (735) (338) (358) Cash flows from financing activities (1534) 8,768 - Cash flows from financing activities (1,534) 8,768 - Cash flows from financing activities (1,534) 8,768 - Cash flows from financing activities (1,534) 8,768 - Net cash provided by (used in) financing activities (2,437) 36,262 48 Cash and cash equivalents at beginning of period 37,753 1,491 1,443 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1,445 1, | Net income (loss) | $ | (2,913) | $ | 1,477 | $ | (3,186) | | | | Amortization of key money and contract costs 1,514 396 7 Amortization of contract liabilities 192 1,497 713 Deferred income taxes - 1 1 Provision (Recovery) of doubtful accounts 1,112 (1,819) 654 Other income (expense), net - - - 846 Loss (gain) on sale of hotel 153 (160) - Change in current assets and liabilities - - - 846 Accounts receivable, net (3,111) (942) (50) Prepaid expenses and other current assets (706) (414) (541) Other long term assets (706) (414) (541) Other long term assets (706) (414) (541) Other long term assets (706) (414) (541) Other long term assets (706) (414) (541) Other long term assets (706) (414) (450) (682) Loyalty program liability (3 (3 (2 (7 | Adjustments to reconcile net loss to cash provided by (used in) operating activities: | | | | | | | | | | Amortization of contract liabilities 192 1,497 713 Deferred income taxes - 1 1 Provision (Recovery) of doubtful accounts 1,112 (1,819) 654 Other income (expense), net - - - 846 Loss (gain) on sale of hotel 153 (160) - Change in current assets and liabilities - (3,111) (942) (50 Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts payable (434) (436) (682) Loyally program liability 139 - - Accrued compensation, accrued expenses, and other liabilities 893 (2,777) 3,600 Net cash provided by (used in) operating activities (22,170) (10,926) 3,861 Cash flows from investing activities (735) (433) (358) Proceeds from sale of hotel - - - (264) Disbursement of notes receivable Depreciation and amortization 489 1,691 3,506 | Depreciation and amortization | | 489 | | 1,691 | | 3,506 | | | | Deferred income taxes | Amortization of key money and contract costs | | 1,514 | | 396 | | 7 | | | | Provision (Recovery) of doubtful accounts 1,112 (1,819) 654 Other income (expense), net - - 846 Loss (gain) on sale of hotel 153 (160) - Change in current assets and liabilities 3,1111

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)