Nicholas plays the Imperial Strategy and claims another Victory Point.
Steve has the option of performing the Secondary Ability of this Strategy Card. However, he has no remaining resources nor Trade Goods and cannot build anything.
Both players have completed the abilities of the Strategy Card. Nicholas flips it over to show it is now Inactive.
Play resumes with Nicholas because Steve "passed" earlier in this round. Nicholas also "passes". The game now advances to the Status Phase for Round 2.