Medicines360

PART X, LINE 2:

“Medicines360 is exempt from federal and state income taxes under the provisions of section 501(c)(3) and section 170(b)(1)(a)(vi) of the internal revenue code and corresponding provisions of the california revenue and taxation code. Accordingly, no provision for income taxes has been made in the accompanying consolidated financial statements. In september 2012, the organization applied for a medical research organization (mro) status with the internal revenue service (irs) which will allow it to achieve its mission by focusing on medical research and remaining a 501(c)(3) public charity without public support. Subsequent to year end, this status was granted to the medicines360 in april 2014. Medicines360's wholly owned subsidiary, alliance partners360, inc. (formerly m360, inc.) is a c-corporation, incorporated in the state of delaware. Alliance partners360,inc. Records income taxes under the asset and liability method of accounting for income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for operating loss and tax credit carryforwards. The organization follows the guidance for uncertain tax positions and began reviewing and assessing tax positions taken and expected to be taken against the more-likely-than-not recognition threshold and measurement attributes for financial statement recognition. Management has concluded there are no uncertain tax positions as of december 31, 2013 and 2012. The organization's federal and state returns for 2010 to 2012 are subject to examination. The organization recognizes interest and penalties accrued related to unrecognized tax benefits in general and administrative expenses in the consolidated statements of activities and changes in net assets. No interest and penalties have been accrued as of december 31, 2013 and 2012.”