Walnut Home Therapeutics Inc.

Form 990, Part V, Line 1A and Form 990, Part VII, Section B

“WALNUT HOME THERAPEUTICS, INC. has entered into a common paying agent relationship with a related organization, THOMAS JEFFERSON UNIVERSITY HOSPITALS, INC. (TJUH). As such, TJUH issues all required Forms 1099 related to the independent contractors of WALNUT HOME THERAPEUTICS, INC. Therefore Form 990, Part V, Line 1a is zero. For Part VII, Section B, WALNUT HOME THERAPEUTICS, INC. has reported its highest paid service providers since it is responsible for paying these amounts as the transactions are accounted for through intercompany transactions between WALNUT HOME THERAPEUTICS, INC. and TJUH. FORM 990, PART V, LINE 2A AND FORM 990, PART IX, LINE 24 WALNUT HOME THERAPEUTICS, INC. has entered into a common paymaster and payroll reporting agent relationship with a related organization, TJUH. As such, TJUH issues all required Forms W-2 related to the employees of WALNUT HOME THERAPEUTICS, INC. Therefore Form 990, Part V, Line 2a is zero. Moreover, the payroll and related benefits expense related to such employees are reported as purchased services on Form 990, Part IX, Line 24 since these expenses are paid by TJUH to the employees and the transactions are accounted for through intercompany transactions between WALNUT HOME THERAPEUTICS, INC. and TJUH. FORM 990, PART VI, LINES 6 & 7 JEFFEX, INC. IS THE SOLE MEMBER OF WALNUT HOME THERAPEUTICS, INC. As the sole member of WALNUT HOME THERAPEUTICS, INC., it has the ability to exercise certain rights over the appointment and approval of directors and certain transactions. FORM 990, PART VI, LINE 11B THE FORM 990 IS REVIEWED INTERNALLY BY MANAGEMENT OF THOMAS JEFFERSON UNIVERSITY (TJU), an affiliate of WALNUT HOME THERAPEUTICS, INC. IT IS THEN PRovided TO THE BOARD OF WALNUT HOME THERAPEUTICS, INC. BEFORE FILING. FORM 990, PART VI, LINE 12C ANNUAL CONFLICT OF INTEREST STATEMENTS ARE REQUIRED TO BE COMPLETED BY THE BOARD OF TRUSTEES, SENIOR MANAGEMENT, AND KEY REPRESENTATIVES OF WALNUT HOME THERAPEUTICS, INC. ALL CONFLICTS ARE REFFERED TO THE CORPORATE COMPLIANCE OFFICER OF TJUH. FORM 990, PART VI, LINE 15 ALL COMPENSATION PAID TO OFFICERS OF WALNUT HOME THERAPEUTICS, INC. IS PAID BY A RELATED ENTITY, TJUH. AS PART OF THE PROCESS FOR DETERMINING COMPENSATION OF THE OFFICERS AND KEY EMPLOYEES OF WALNUT HOME THERAPEUTICS, INC., TJUH USES SEVERAL EXTERNAL MARKET SURVEY DATA PROVIDERS SUCH AS MERCER, SULLIVAN COTTER, GALLAGHER SURVEYS, ETC. THE SALARIES IN THE SURVEYS ARE ANONYMOUS AND CONTAIN SEVERAL OTHER PARTICIPATING ORGANIZATIONS IN HEALTHCARE. THE THOMAS JEFFERSON UNIVERSITY (TJU) BOARD HIRES AND DETERMINES THE BASE AND INCENTIVE COMPENSATION FOR THE CHAIRPERSON OF WALNUT HOME THERAPEUTICS, INC. (IN HIS ROLE AS CEO OF TJUH SYSTEM, INC. AND TJUH). WHILE THE CHAIRPERSON IS NOT AN OFFICER OR EMPLOYEE OF THE TJU LEGAL ENTITY ITSELF, THE CHAIRPERSON DOES REPORT (PER TJU'S GOVERNANCE DOCUMENTS) TO THE TJU CEO. TJUH FORMULATES MARKET DATA SHEETS BY SHARING THE 25TH, 50TH, AND 75TH PERCENTILES. FOR COMPENSATION, TJUH TARGETS THE 50TH PERCENTILE OF THE MARKET. HOWEVER LOWER OR HIGHER PERCENTILES MAY BE USED DEPENDING UPON A CANDIDATE'S DEPTH OF EXPERIENCE. TJUH ALSO TARGETS ORGANIZATIONS SUCH AS TEACHING HOSPITALS, THOSE FROM NORTHEASTERN U.S.A., AND THOSE WITH REVENUE GREATER THAN ONE BILLION DOLLARS AS A GAUGE FOR DETERMINING COMPENSATION RANGES. FORM 990, PART VI, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST.”