Sc Launch Inc.

“Control over management duties: through a written agreement between sc launch ("scl") and the related organization, the south carolina research authority ("scra"), scl has delegated management duties to the employees of scra. The agreement identifies the roles and responsibilities of both scl and scra.”

“Board of directors: the board shall consist of at least seven persons, as follows: (i) three persons appointed by the executive committee of the board of trustees of the south carolina research authority, of which one appointee must be a member of the board of trustees of the south carolina research authority who meets the "experience criteria" set forth below (collectively, the "scra directors"), (ii) one person appointed by the board of directors of the clemson university research foundation, (iii) one person appointed by the board of directors of the musc foundation for research development, (iv) one person appointed by the board of directors of the university of south carolina research foundation, and (v) one person who meets the "experience criteria" set forth below elected by the affirmative vote of a majority of the board members identified in categories (ii), (iii) and (iv) above then serving on the board of the corporation. For purposes of this provision, a person shall be deemed to meet the "experience criteria" if such person has significant experience in at least two of the following areas: entrepreneurial endeavors, managing a company in the technology industry, managing relations with a research university or interfacing with the research activities of a research university, and investing in or serving on the board of an early stage or technology company. Each director shall hold office until his successor shall have been duly appointed and qualified, or until his earlier resignation, removal from office, death or incapacity. Directors must be natural persons and must reside in south carolina. The number of directors may be increased or decreased, as may be determined from time to time by the majority vote of the directors in office when the action is taken; provided, however, that in no event shall the board consist of fewer than seven members. In the event the number of directors is changed, the number of scra directors shall be one less than a majority of the members of the board if the number of directors is an odd number, and two less than a majority of the members of the board if the number of directors is an even number. Section 3. Chairman. The board of directors shall elect a chairman from among their membership who shall serve at the pleasure of the board.”

“Form 990 review process: prior to submission to the irs, the sc launch treasurer reviews the 990 in detail and makes it available to the full board.”

“Conflict of interest policy: sc launch board of directors and officers submit an annual conflict of interest statement acknowledging that they have read and understand the policy and that a statement of potential conflict of interest form will be filed and disclosed to the board at a regular meeting should a potential conflict of interest arise.”

“Compensation determination: compensation for the sc launch executive director, the chief officer of sc launch, as well as that of the treasurer and secretary is set by the audit and finance committee of the south carolina research authority ("scra"), a related organization that provides services to sc launch, including management (see 990 part vi, question 3). Scra engages an independent consultant who advises the scra audit and finance committee regarding compensation for the executives who serve as officers for sc launch. Compensation is reviewed annually by the committee. This process has been in place since 2004.”

“Public access to documents: the organization makes its form 990, governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLES $23,884,796 Effective July 1, 2023, the SC Launch adopted a change in accounting principle to account for mission-based equity and debt interests using the cost method and amortized cost method, respectively. The change in accounting principle recognizes SC Launch's mission-based equity and debt interests and increases the understandability of the financial statements in the context of SC Launch's mission as well as its primary objective of entering into agreements with qualifying companies to comply with SCRA's enabling legislation to provide funds in furtherance of economic development in the State of South Carolina. An important objective of these mission-based interests is to increase opportunities for employment of the citizens of South Carolina and to promote and encourage expansion of research and technology transfer to industry. Accordingly, SC Launch is not entering into such transactions solely based on its own economic self-interest, but rather for the general public interest in the State of South Carolina as provided for by SCRA's enabling legislation. In fiscal year 2024, SC Launch provided $2,200,000 of funding to mission-based interests.”

“Financial statements audit oversight: there have been no changes during the year in the process for oversight of the audit of the financial statements.”