Education Matters Inc

“The Organization is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and a similar provision of state law. It is not considered to be a private foundation. Their IRS Form 990 is subject to review and examination by federal and state authorities. The Organization is not aware of any activities that would jeopardize its tax-exempt status. They are not aware of any activities that are subject to tax on unrelated business income, excise or other taxes. The Manager has elected to be taxed as a corporation. The Manager accounts for income taxes in accordance with the asset and liability method as required by FASB ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized based on differences between the book and tax bases of assets and liabilities using currently enacted tax rates. The provision for income taxes is the sum of the amount of income tax paid or payable for the year determined by applying the provision of enacted tax laws to the taxable income for that year and the net change during the year in the Manager's deferred tax assets and liabilities. The Landlord and Master Tenant are treated as partnerships for income tax purposes. Income taxes on the Landlord and Master Tenant income are levied on the members of the Landlord and Master Tenant at the member level. Accordingly, all profits and losses of the Landlord and Master Tenant are recognized by each member on their respective tax return. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Organization to report information regarding its exposure to various tax positions taken by the Organization. The Organization has determined whether any tax positions have met the recognition threshold and have measured the Organizations exposure to those tax positions. Management believes that the Organization has adequately addressed all relevant tax positions and that there are no unrecorded tax liabilities. Any interest or penalties assessed to the Organization are recorded in operating expenses. No interest or penalties from federal or state taxing authorities were recorded in the accompanying consolidated financial statements. The Organization and its subsidiaries' income tax returns are subject to review and examination by federal authorities.”

“Investment in St. Michaels Matters - C-corporation -59,629.”