Inn at Cedars Inc

Part X, Line 2:

“The consolidated financial statements include the accounts of JHA Services, Inc. (JHA Services) and its subsidiaries, Cedars Nursing Care Center, Inc. (Cedars), JHA Assisted Living, Inc. (JHA Assisted Living), JHA Management Services, LLC (JHA Management), Cedars Foundation and Cedars Condominium Association (CCA). Effective May 1, 2014, the operations of JHA Properties, Inc. and The Inn at Cedars, Inc. (The Inn) were transferred to JHA Assisted Living. JHA Properties was a not-for-profit entity located in Portland, Maine, incorporated on August 21, 1996. JHA Properties operated the Atrium at Cedars (the Atrium) (now operated by JHA Assisted Living), a 61 unit complex of independent living apartments which commenced operations in December 1999. The Atrium consists of 38 two-bedroom and 25 one-bedroom units with available services including meals, utilities, emergency care, security, housekeeping, transportation, activities and property maintenance. All 61 units are to be occupied by residents who will pay monthly rental charges; additional ancillary services are available on a fee-for-service basis. At April 30, 2015, 52 units were occupied. Of the 52 occupied units, 51 have paid entrance fees. The cost of any health care services provided by outside agencies is the responsibility of the individual residents. Upon occupancy, certain residents pay an entrance fee. Monthly rental charges for residents range between $1,150 and $5,410 per month. JHA Assisted Living is a not-for-profit entity located in Portland, Maine established to address an identified community need for additional assisted living services for elderly in the area and to specifically address a gap in the continuum of care provided by existing affiliates of JHA Services. JHA Assisted Living owns a 30-unit assisted living facility adjacent to Cedars (perviously leased to and operated by the Inn). JHA Assisted Living is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. Tax-exempt organizations could be required to record an obligation for income taxes as the result of a tax position they have historically taken on various tax exposure items including unrelated business income or tax status. Under guidance issued by the Financial Accounting Standards Board (FASB), assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the "more-likely-than-not" threshold, based upon the technical merits of the position. Estimated interest and penalties, if applicable, related to uncertain tax positions are included as a component of income tax expense. JHA Services has evaluated the position taken on its filed tax returns. JHA Assisted Living has concluded no uncertain income tax positions exist at April 30, 2015. JHA Assisted Living's tax years from 2012 through 2015 are open and subject to examination.”