Shelton Landmark Foundation

“Intended uses of the organization's endowment funds the endowment funds reported consist of the entire activity of the june f. Shelton legacy foundation, which is organized and operated exclusively for the benefit of the june shelton school and evaluation center. The june f. Shelton legacy foundation is a texas nonprofit corporation, the principal purposes of which are to support, benefit and further the purposes of shelton school, primarily by raising, preserving, managing and investing funds for the benefit of shelton school. The foundation's endowments according to gaap definitions consist of only a single fund established and used for financial aid. Currently the foundation considers donor restricted endowment funds, according to gaap, as permanently restricted net assets in the amount of $525,383 as of may 31, 2020.”

“Fin 48 (asc 740) audited financial statement footnote the foundation is exempt from federal income taxes under section 501(c)(3) of the united states internal revenue code according to the united states internal revenue service ("irs") determination letter dated july 17, 2012, except to the extent it has unrelated business income. For the years ended may 31, 2020 and 2019, unrelated business income did not result in any material net taxable income, therefore no provision for income tax has been provided in the accompanying financial statements. The foundation is required to file an annual form 990-t with the irs for any unrelated business income. Gaap requires the evaluation of tax positions taken or expected to be taken in the course of preparing the foundation's financial statements to determine whether the tax positions are more likely than not of being sustained by the applicable tax authority. Tax positions not deemed to meet the more likely than not threshold would be recorded as a tax benefit or expense in the current year. A reconciliation is not provided herein, as the beginning and ending amounts of unrecognized benefits are zero, with no interim additions, reductions, or settlements. The foundation is relying on its tax-exempt status and its adherence to all applicable laws and regulations to preserve that status. However, the conclusions regarding the uncertainty in income taxes will be subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analysis of tax laws, regulations, and interpretations thereof. The foundation recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense. The foundation's informational returns filed with the irs are generally subject to examination for three years after the later of the due date or date of filing.”

“INTEREST RATE SWAP LOSS”

“An interest rate swap agreement is in place to reduce the impact of changes in interest rates on the floating rate long-term debt. The fair value of the swap as of may 31, 2020 was $(4,158,084) and resulted in a loss of $2,638,064.”