Casa De Amma Inc.

“The organization qualifies as a tax-exempt organization under section 501(c)(3) of the internal revenue code and under section 23701(d) of the california revenue and taxation code. Fasb asc topic 740, income taxes, requires management to evaluate the tax positions taken by the organization and to recognize a tax liability if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by the internal revenue service. Management has analyzed the tax positions taken by the organization and has concluded that, as of december 31, 2017, there are no uncertain positions taken, or expected to be taken, that would require recognition of a liability or disclosure in the financial statements. The organization is subject to routine audits by the taxing jurisdictions. The statute of limitations for federal and california state purposes is generally three and four years, respectively.”

“In march 2020, congress passed the paycheck protection program (ppp) under division a, title i of the coronavirus aid, relief, and economic security act, authorizing loans to small businesses for use in paying employees that they continue to employ throughout the covid-19 pandemic and for rent, utilities and interest on mortgages. Loans obtained through the program are eligible to be forgiven as long as the proceeds are used for qualifying purposes and certain other conditions are met. In may 2020, the organization received a loan in the amount of $249,172 through the ppp. Management believes that the organization has complied with the above terms and anticipates that the loan will be fully forgiven. Final approval of any loan forgiveness is subject to the small business administration (sba). To the extent it is not forgiven, the organization would be required to repay that portion at an interest rate of 1% per annum over a period of two years, beginning november 2021 with a final installment in may 2022. The sba has released guidance stating that if a borrower submits its loan forgiveness application subsequent to the covered period and prior to the start of repayment, the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by the sba. The organization applied for forgiveness in november 2020 and expects full forgiveness.”