St Joe Valley Metronet Inc

PART X, LINE 2:

“Choicelight, inc. Is a nonprofit organization that is exempt from income taxes under section 501(c)(3) of the internal revenue code. The internal revenue service has determined that choicelight, inc. Is not a private foundation within the meaning of section 509(a). The wholly-owned for profit subsidiary, clight, inc., files a corporate federal and state tax return. Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist of taxes currently due plus deferred taxes. Deferred taxes are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. The income taxes topic, fasb asc 740, clarifies the accounting for uncertainty in income taxes recognized in an entity's financial statements. Asc 740 requires an entity to disclose the nature of uncertain tax positions taken, if any, when filing its income tax return utilizing a two-step process to recognize and measure any uncertain tax positions taken. The entity recognizes a tax benefit only if it is more likely than not the position would be sustained in a tax examination, with a tax examination being presumed to occur. No tax benefit will be recorded on tax positions not meeting the more likely than not test. Interest and penalties accrued or incurred, if any, as a result of applying asc 740 will be recorded to interest expense and other expense, respectively. Based on its evaluation, the organization has concluded that there are no uncertain tax positions requiring recognition in its consolidated financial statements. The organization's evaluation was performed for all federal and state tax periods still subject to examination. Choicelight, inc.'s 2020 through 2022 federal and state exempt organization returns and clight, inc.'s 2020 through 2022 federal and state tax returns remain subject to examination by the irs and state taxing authority.”