Madison Project DBA the Broad Stage

“The endowment fund's intended use is to provide for the operational expenses of the theater.”

“The organization is a nonprofit, public-benefit corporation organized under the laws of california and, as such, is exempt from federal and state income taxes under internal revenue code section 501(c)(3) and the corresponding state provision. However, the organization is subject to income taxes on any net income that is derived from trade or business regularly carried on and not in the furtherance of the purposes for which it was granted exemption. Management believes that the organization has not received income from any unrelated trade or business and, as such, no income tax provision has been recorded on the organization's financial statements. The organization is subject to potential income tax audits on open tax years by any taxing jurisdiction in which it operates. The statute of limitations for federal and california state purposes is generally three and four years, respectively.”

“Investment management fees 40,045.”

“In march 2020, congress passed the paycheck protection program, 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. In april 2020, the organization successfully secured a $382,270 small business association ("sba") loan under the paycheck protection program. Per the terms of the loan, the full amount will be forgiven as long as loan proceeds are used to cover payroll costs and other specified non-payroll costs (provided any non-payroll costs do not exceed 40% of the forgiven amount) over a 24-week period after the loan is made; and employee and compensation levels are maintained. The organization intends to comply with the above terms in order to qualify for full forgiveness less the $10,000 eidl advance, or partial loan forgiveness. To the extent it is not forgiven, the organization would be required to repay that portion at an interest rate of 1% over a period of two years, with a final installment estimated by february 2022. As of the issuance of these financial statements the organization has not made any payments on the balance of the loan or applied for loan forgiveness. Final approval of any loan forgiveness is subject to the small business administration.”

“In june 2020, the organization received an economic injury disaster loan ("eidl") under the sba's assistance program in light of the impact of the covid-19 pandemic. Pursuant to the eidl agreement, the organization received a forgivable advance of $10,000 and loan of $150,000, to be used for working capital purposes only. Pursuant to the eidl agreement, the organization executed; (i) a note for the benefit of the sba, which contains customary events of default; and (ii) a security agreement, granting the sba a security interest in all tangible and intangible personal property of the organization, which also contains customary events of default. The eidl bears an interest rate of 2.75% per annum which accrue from the date of the advance. Installment payments, including principal and interest, are due monthly beginning june 2021. The balance of principal and interest is payable thirty years from the date of the eidl agreement. As of the issuance of these financial statements, the organization has not made any payments on the balance of the loan or applied for loan forgiveness for the advance of $10,000.”