Pituitary Society Incorporated

PART X, LINE 2:

“Effective december 15, 2009, the society adopted asc 740-10-50-15, accounting for uncertainty in 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. The cumulative effect of this change in accounting principle was immaterial. 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. Based upon the level of historical income and projections for future income, management believes it is more likely than not that the society will realize all tax benefits. The society classifies interest on underpayments of income tax as "interest expense," and classifies penalties in connection with underpayments of tax as "other expense." the society does not expect a significant increase or decrease to the total amounts of unrecognized tax positions during the fiscal year ended june 30, 2014. However, the society is under regular audit by tax authorities. The society believes that it has appropriate support for the positions taken on its returns. Nonetheless, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from amounts accrued. The society files informational returns in the united states and new york state jurisdictions. The society is no longer subject to income tax examinations by the internal revenue service or new york state for returns filed before 2011.”