Measured Progress Inc

“The City of Dover, NH is the party responsible for monitoring the easement annually, and provides Measured Progress with an easement monitoring report.”

“The conservation easement is not reported in the financial statements.”

“Measured Progress and its subsidiary, 171 Watson Road of Dover Holding Corporation, have been recognized by the Internal Revenue Service as tax-exempt organizations under Section 501(c)(3) of the Internal Revenue Code (the Code). As such, they are exempt from federal income tax on related income. Advanced Systems is a for-profit organization which files federal and state income tax returns. Certain net operating losses of taxable subsidiaries of approximately $1,307,000 at June 30, 2016 and 2015, generate a potential deferred tax asset of approximately $477,000. The losses begin to expire in 2022. No asset has been recorded as this amount is offset by a valuation allowance of the same amount, as it is management's judgment that it is more likely than not that the benefit of such losses will not be realized. The change in the valuation allowance was a decrease of approximately $73,000 in 2015. There was no change in the valuation allowance in 2016. The Company follows the accounting guidance for uncertainty in income taxes using the provisions of FASB Accounting Standards Codification 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the consolidated financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. Such tax positions initially and subsequently need to be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company believes that it has appropriate support for the income tax positions taken and to be taken on tax returns, and that its accruals for tax liabilities are adequate based on an assessment of many factors including experience and interpretations of tax laws applied to the facts of each matter. The Company has not historically had significant amounts of interest or penalties related to income taxes and any such amount would be recorded as income tax expense. In addition, Management has also evaluated the tax positions of Measured Progress and 171 Watson Road of Dover Holding Corporation, and concluded they have maintained their tax exempt status, properly addressed their unrelated business income, and have taken no uncertain tax positions that require adjustment or disclosure to the consolidated financial statements.”

“Change in Interest Rate Swap 686,433. Expenses Netted with Income on Financial Statements 102,025. Rental Expenses 2,073,676.”

“Expenses Netted with Income on Financial Statements 102,025. Rental Expenses 2,073,676.”