Kvc Endowment Inc.

“$625,000 was contributed to a related organization, Great Circle, but with the understanding that the donation would be permanently restricted and managed along with other assets of BGTM. The asset is currently listed on the books of Great Circle, but management of this asset is conducted by BGTM.”

“The intended use of the funds held in endowment is to help support Great Circle through periodic distributions to support their operations.”

“The Organization is a not-for-profit corporation, exempt from Federal income tax under section 501(c)3 of the Internal Revenue Code and none of its present or anticipated future activities are subject to taxation as unrelated business income. Therefore, no provision for income taxes has been made in the accompanying consolidated financial statements. The Organization follows the provisions of ASC 740-10-25 requiring disclosure of uncertain tax positions. There have been no interest or penalties neither recognized in the consolidated statement of activities nor in the consolidated statement of financial position related to uncertain tax positions. In addition, no tax positions exist for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. The Organization files income tax returns in the U.S. federal jurisdiction. The statute of limitations is three years and the years that remain subject to examination are 2013, 2014 and 2015. The Organization evaluates its uncertain tax positions, if any, on a continual basis through review of its policies and procedures, review of its regular tax filings, and discussions with outside experts.”