Scarc Foundation Inc.

“The foundation is recognized by the internal revenue service as a nonprofit organization under internal revenue code section 501(c)(3) and is thereby exempt from federal income taxes. The foundation is also exempt under title 15 of the state of new jersey corporations and associations not-for-profit act and is there by exempt from state income taxes. The foundation follows asc 740-10-50-15, income taxes. The standard prescribes a minimum recognition threshold and measurement methodology that a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the financial statements. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition related to those tax positions. In assessing the realizability of tax benefits, management considers whether it is more likely than not that some portion or all of any tax position will not be realized. The ultimate realization of such tax positions is dependent upon the generation of future income. Management considers projected future income, and tax planning strategies in making this assessment. The foundation does not expect a significant increase or decrease to the total amounts of unrecognized tax positions during the fiscal year ended june 30, 2016. However, the foundation is subject to regular audit by tax authorities, including a review of its nonprofit status, which management believes would be upheld upon examination. The foundation believes that it has appropriate support for the positions taken on its tax returns. Nonetheless, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. As required by law, the foundation files informational returns with both the federal and new jersey state governments on an annual basis - form 990 with the internal revenue service, and form cri-300r with the state. The federal return is subject to examination by the authorities within three years from the latest filing date for the federal tax return.”

“Special events expenses 134,104.”

“Special events expense 134,104.”