Civic Intelligence

The Foundation for Embryonic Competence Inc.

990 • Fiscal year 2017 • EIN 46-3032063

Oct 01, 2016 to Sep 30, 2017 • Filed on Aug 13, 2018

140 Allen Road No 300Basking Ridge, NJ 07920

(908) 580-1200

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

16th percentile

0.02x

Higher debt load relative to assets than 16% of similar nonprofits.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2017

Liabilities / Revenue

13th percentile

0.06x

Higher debt load relative to revenue than 13% of similar nonprofits.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2017

Net Margin

1st percentile

-763%

Higher net margin than 1% of similar nonprofits.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2017

Top Officer Pay

50th percentile

$244,732

Higher top officer pay than 50% of similar nonprofits.

Top officer pay equals 2.7% of source-year revenue.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2017

Asset Growth

1st percentile

-76%

Faster asset growth than 1% of similar nonprofits.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Annualized from 2016 to 2017

Revenue Growth

18th percentile

-6.9%

Faster revenue growth than 18% of similar nonprofits.

2017 filings • 501(c)3 • $25M-$50M nonprofits • Annualized from 2016 to 2017

Assets

Down

$22,887,313

Down $72,252,374 (-76%) from 2016

Net Assets

Down

$22,369,343

Down $72,203,483 (-76%) from 2016

Liabilities

Down

$517,970

Down $48,891 (-8.6%) from 2016

Revenue

Down

$8,966,143

Down $665,356 (-6.9%) from 2016

Expenses

Up

$77,414,549

Up $69,335,465 (+858%) from 2016

Net Income

Down

-$68,448,406

Down $70,000,821 (-4509%) from 2016

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$100M$50M$0-$50MAssets 2013: $414,217Liabilities 2013: $414,348Net Assets 2013: -$1312013Assets 2014: $91,626,123Liabilities 2014: $860,633Net Assets 2014: $90,765,4902014Assets 2015: $93,972,721Liabilities 2015: $1,191,474Net Assets 2015: $92,781,2472015Assets 2016: $95,139,687Liabilities 2016: $566,861Net Assets 2016: $94,572,8262016Assets 2017: $22,887,313Liabilities 2017: $517,970Net Assets 2017: $22,369,3432017Assets 2018: $23,560,103Liabilities 2018: $1,820,682Net Assets 2018: $21,739,4212018Assets 2019: $21,003,256Liabilities 2019: $1,150,029Net Assets 2019: $19,853,2272019Assets 2020: $20,006,242Liabilities 2020: $1,275,666Net Assets 2020: $18,730,5762020Assets 2021: $27,223,706Liabilities 2021: $914,946Net Assets 2021: $26,308,7602021Assets 2022: $16,430,730Liabilities 2022: $365,526Net Assets 2022: $16,065,2042022Assets 2023: $14,752,429Liabilities 2023: $165,446Net Assets 2023: $14,586,9832023Assets 2024: $13,627,794Liabilities 2024: $158,676Net Assets 2024: $13,469,1182024

Highlighted filing

2017

Assets$22,887,313
Liabilities$517,970
Net Assets$22,369,343

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$100M$50M$0-$50M-$100MRevenue 2013: $0Expenses 2013: $131Net Income 2013: -$1312013Revenue 2014: $94,632,976Expenses 2014: $3,830,619Net Income 2014: $90,802,3572014Revenue 2015: $9,684,125Expenses 2015: $7,478,668Net Income 2015: $2,205,4572015Revenue 2016: $9,631,499Expenses 2016: $8,079,084Net Income 2016: $1,552,4152016Revenue 2017: $8,966,143Expenses 2017: $77,414,549Net Income 2017: -$68,448,4062017Revenue 2018: $5,963,159Expenses 2018: $6,568,585Net Income 2018: -$605,4262018Revenue 2019: $5,872,571Expenses 2019: $7,812,065Net Income 2019: -$1,939,4942019Revenue 2020: $5,787,769Expenses 2020: $6,938,014Net Income 2020: -$1,150,2452020Revenue 2021: $15,272,541Expenses 2021: $8,009,129Net Income 2021: $7,263,4122021Revenue 2022: $7,260,831Expenses 2022: $4,653,715Net Income 2022: $2,607,1162022Revenue 2023: -$3,532,420Expenses 2023: $1,387,565Net Income 2023: -$4,919,9852023Revenue 2024: $60,778Expenses 2024: $1,351,782Net Income 2024: -$1,291,0042024

Highlighted filing

2017

Revenue$8,966,143
Expenses$77,414,549
Net Income-$68,448,406
Jump To
Filing Snapshot
Filing Period
Oct 1, 2016 to Sep 30, 2017
Signed
Aug 13, 2018
Return Version
2016v3.0
Gross Receipts
$29,524,065
Mission and Program Overview

Mission

Technology (art) clinics.providing broad access to single gene disorder diagnostics so that individual with a known genetic condition can have their embryos evaluated to improve their likelihood of having a baby who is not affected by the genetic conditionsponsoring research that advances the field of embryonic competence and provides a clear pathway to improved clinical outcomes and reduced complications for ivf pateints.supporting continuing medical education (cme), graduate-level educational initiatives, and other educational activities to advance our understanding and the application of embryonic diagnostics around the world.

See attached schedule "o"the foundation for embryonic competence, inc., formerly known as "the foundation for the assessment and enhancement of embryonic competence, inc." ("foundation") is a new jersey non-profit corporation, incorporated in 2013. The foundation's activities are conducted at its sole location, 140 allen road in basking ridge, new jersey. The mission of the foundation is advancing knowledge and enhancing outcomes in embryonic research, diagnosis, and education.

Balance Sheet Detail
LineBeginningEndChange
Assets
Investments in Publicly Traded Securities$2,759,057$7,323,331▲ $4,564,274
Cash and Non-Interest-Bearing Accounts$2,820,873$898,973▼ $1,921,900
Accounts Receivable$361,711$538,649▲ $176,938
Inventories for Sale or Use$342,311$294,598▼ $47,713
Land, Buildings, and Equipment, Net$1,314,748$191,919▼ $1,122,829
Prepaid Expenses and Deferred Charges$51,089$66,052▲ $14,963
Total Assets$91,160,445$22,887,313▼ $68,273,132
Other Assets Total$83,510,656$13,573,791▼ $69,936,865
Liabilities
Accounts Payable and Accrued Expenses$401,131$412,143▲ $11,012
Grants Payable$71,652$71,652→ $0
Deferred Revenue$94,078$34,175▼ $59,903
Total Liabilities$566,861$517,970▼ $48,891
Net Assets / Fund Balance
Unrestricted Net Assets$90,593,584$22,369,343▼ $68,224,241
Total Net Assets Fund Balance$90,593,584$22,369,343▼ $68,224,241
Total Liabilities and Net Assets / Fund Balance$91,160,445$22,887,313▼ $68,273,132

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$190,333$1,067,907$1,258,240
Leasehold Improvements$1,586$2,408$3,994
Other Assets Org$1,083,791--
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
James PattersonCFOFT$220,654$24,078$244,732
Rebekah ZimmermanLab DirectorFT$200,218$21,953$222,171
Katherine ScottResearchFT$175,000-$175,000
Yiping ZhanBioinformaticsFT$155,000$17,199$172,199
David SharpellControllerPT$126,500-$126,500
Xin TaoResesearchFT$108,900-$108,900
Jessica LandisBioinformaticsFT$107,104-$107,104

Board Members and Trustees

NameTitle
Richard ScottPresident
Lyn JacobsonSecretary
William ChowTreasurer
Revenue and Support

Revenue Composition

Contributions and Grants
$0
Program Service Revenue
$11,216,329
Investment Income
$-833,977
Other Revenue
$-1,416,209
Change in Net Assets
$-68,448,406

Audited Revenue Reconciliation

Revenue per Audited Statements
$8,966,143
Revenue Not Reported on Financial Statements
$0
Revenue Not Reported on Form 990
$224,164
Total Revenue per Audited Statements
$9,190,307
Total Revenue per Form 990
$8,966,143
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$74,792,459
Salaries, Compensation, and Employee Benefits$2,648,703
Professional Fundraising Fees$0
Total Fundraising Expense$0
Grants and Similar Amounts Paid$-26,613

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Current Officers, Directors, Trustees, and Key Employees$1,149,376--$1,149,376
Other Salaries and Wages$892,784$254,640-$1,147,424
Depreciation Depletion$275,495$8,504-$283,999
Fees for Services Other$189,533$41,574-$231,107
All Other Expenses$146,864$59,904-$206,768
Fees for Services Management$183,486$18,000-$201,486
Payroll Taxes$168,041$17,556-$185,597
Other Expenses$158,963$1,690-$160,653
Other Employee Benefits$125,072$15,507-$140,579
Fees for Services Legal$86,257$38,050-$124,307
Occupancy$2,465$121,256-$123,721
Insurance-$86,276-$86,276
Information Technology$18,478$34,175-$52,653
Travel$32,933$1,210-$34,143
Pension Plan Contributions-$25,727-$25,727
Fees for Services Accounting-$22,927-$22,927
Conferences and Meetings$16,872$475-$17,347
Advertising$7,857$823-$8,680
Office Expenses$2,154$538-$2,692
Grants to Domestic Orgs$-26,613--$-26,613
Total Functional Expenses$5,439,619$71,974,930$0$77,414,549

Audited Expense Reconciliation

Line ItemAmount
Expenses per Audited Statements$77,414,549
Total Expenses per Audited Statements$77,414,549
Total Expenses per Form 990$77,414,549
Expenses Not Reported on Financial Statements$0
Expenses Not Reported on Form 990$0
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
-Substantial ContributorRMA ADMINISTERS THE BILLING AND RECEIVABLE PROCESS FOR THE FOUNDATION AND CHARGED 1% OF THE RESPECTIVE NET BILLING.Yes$201,486
-Substantial ContributorThe Foundation Leases Its Office Facility From Rma.No$114,050
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
No
Backup withholding compliance
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
Yes
Conflict-of-interest policy
Yes
Audited financial statements prepared
No
Key decisions subject to board approval
No
Management duties delegated
No

Governance Explanations

Form 990, Part VI, Section A, Line 7A

The board of directors have the right to appoint the directors and officers of the organization. The board members have three year terms and officers have one year terms.

Form 990, Part VI, Section B, Line 11B

The directors and financial employee receive a copy of the form 990 for review. Corrections and comments.

Form 990, Part VI, Section B, Line 12C

The company reviews its conflict of interest policy with its directors, trustees and key employees on a yearly basis to monitor compliance. An annual conflict of interest questiionnaire is completed by each director and officer to ensure that any conflicts are identified and resolved.

Form 990, Part VI, Section B, Line 15

In article vii of the organizations conflict of interest policy - periodic reviews will be conducted to ensure the organization operates in a manner consistent with charitable purposes. Which would include whether compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arms length bargaining. When conducting this review the organization may, but need not, use outside advisors. If outside experts are used, their use shall not relieve the governing board of its responsibility for ensuring periodic reviews are conducted. Through 9/30/2016, the organization used a market survey to conform the chief operating officers salary.

Form 990, Part VI, Section C, Line 19

All documents are available to the public by contacting the chief operating officer at 140 allen road, basking ridge, nj 07920. The public can receive this information through the foundation's website at www.faeec.org.

Filing and Contact Details

Filer

Filer Name
The Foundation for Embryonic Competence
EIN
46-3032063
Phone
9085801200
Address
140 ALLEN ROAD NO 300, BASKING RIDGE, NJ 07920

Signing Officer

Name
David Sharpell
Title
Controller
Phone
9085801200
Signed
2018-08-13
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Richard Scott Md
Formed
2013
Legal Domicile
Nj
Voting Board Members
3
Independent Board Members
3
Employees
40
Volunteers
0

Preparer

Firm
The Curchin Group LLC
Address
200 SCHULZ DR STE 400, RED BANK, NJ 07701-6745
Preparer
Robert Fischbein
Phone
7327470500
Supplemental Narrative

Financial Statement Notes

PART X, LINE 2:

The foundation qualifies as a tax-exempt organization under section 501(c) 3 of the internal revenue code. Therefore, no provision or liability for federal and state income taxes has been included in these financial statements. The foundation recognizes the effect of income tax positions only when they are more likely than not to be sustained. Management has determined that the foundation had no uncertain tax positions that require financial statement recognition and/or disclosure. The foundation's federal income tax returns for 2014, 2015 and 2016 are subject to examination by the irs and other state taxing authorities, generally for three years.

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IRS990/LegalDomicileStateCd0NJ
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IRS990/LessCostOthBasisSalesExpnssGrp/SecuritiesAmt019635757
IRS990/LoanOutstandingInd00
IRS990/LobbyingActivitiesInd00
IRS990/LocalChaptersInd00
IRS990/MaterialDiversionOrMisuseInd00
IRS990/MembersOrStockholdersInd00
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IRS990/MinutesOfCommitteesInd01
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IRS990/MissionDesc0PROVIDING BROAD ACCESS TO CUTTING-EDGE AND HIGHLY VALIDATED EMBRYONIC DIAGNOSTIC TESTS THAT ACCURATELY ASSESS THE COMPETENCY OF EMBRYOS LEADING TO CLINICALLY MEANINGFUL IMPROVEMENTS IN PREGNANCY AND DELIVERY RATES FOR INDIVIDUALS BEING SEEN AT ASSISTED REPRODUCTIVE TECHNOLOGY (ART) CLINICS.PROVIDING BROAD ACCESS TO SINGLE GENE DISORDER DIAGNOSTICS SO THAT INDIVIDUALS WITH A KNOWN GENETIC CONDITION CAN HAVE THEIR EMBRYOS EVALUATED TO IMPROVE THEIR LIKELIHOOD OF HAVING A BABY WHO IS NOT AFFECTED BY THE GENETIC CONDITION.SPONSORING RESEARCH THAT ADVANCES THE FIELD OF EMBRYONIC COMPETENCE AND PROVIDES A CLEAR PATHWAY TO IMPROVED CLINICAL OUTCOMES AND REDUCED COMPLICATIONS FOR IVF PATIENTS.SUPPORTING CONTINUING MEDICAL EDUCATION (CME), GRADUATE-LEVEL EDUCATIONAL INITIATIVES, AND OTHER EDUCATIONAL ACTIVITIES TO ADVANCE OUR UNDERSTANDING AND THE APPLICATION OF EMBRYONIC DIAGNOSTICS AROUND THE WORLD.
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IRS990/MoreThan5000KToOrgInd00
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IRS990/NetUnrlzdGainsLossesInvstAmt0224164
IRS990/NondeductibleContributionsInd00
IRS990/OccupancyGrp/ManagementAndGeneralAmt0121256
IRS990/OccupancyGrp/ProgramServicesAmt02465
IRS990/OccupancyGrp/TotalAmt0123721
IRS990/OfficeExpensesGrp/ManagementAndGeneralAmt0538
IRS990/OfficeExpensesGrp/ProgramServicesAmt02154
IRS990/OfficeExpensesGrp/TotalAmt02692
IRS990/OfficerMailingAddressInd00
IRS990/OperateHospitalInd00
IRS990/Organization501c3Ind0X
IRS990/OrganizationFollowsSFAS117Ind0X
IRS990/OtherAssetsTotalGrp/BOYAmt083510656
IRS990/OtherAssetsTotalGrp/EOYAmt013573791
IRS990/OtherChangesInNetAssetsAmt00
IRS990/OtherEmployeeBenefitsGrp/ManagementAndGeneralAmt015507
IRS990/OtherEmployeeBenefitsGrp/ProgramServicesAmt0125072
IRS990/OtherEmployeeBenefitsGrp/TotalAmt0140579
IRS990/OtherExpensesGrp/Desc0IMPAIRMENT OF ENTERPRIS
IRS990/OtherExpensesGrp/Desc1LAB SUPPLIES
IRS990/OtherExpensesGrp/Desc2CREDIT CARD PROCESSING
IRS990/OtherExpensesGrp/Desc3LAB EQUIPMENT REPAIR
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IRS990/OtherExpensesGrp/ManagementAndGeneralAmt1216098
IRS990/OtherExpensesGrp/ManagementAndGeneralAmt21690
IRS990/OtherExpensesGrp/ProgramServicesAmt02009602
IRS990/OtherExpensesGrp/ProgramServicesAmt1158963
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IRS990/OtherExpensesGrp/TotalAmt3160653
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IRS990/OtherSalariesAndWagesGrp/TotalAmt01147424
IRS990/PartialLiquidationInd00
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IRS990/PayrollTaxesGrp/ProgramServicesAmt0168041
IRS990/PayrollTaxesGrp/TotalAmt0185597
IRS990/PensionPlanContributionsGrp/ManagementAndGeneralAmt025727
IRS990/PensionPlanContributionsGrp/TotalAmt025727
IRS990/PoliticalCampaignActyInd00
IRS990/PrepaidExpensesDefrdChargesGrp/BOYAmt051089
IRS990/PrepaidExpensesDefrdChargesGrp/EOYAmt066052
IRS990/PrincipalOfficerNm0RICHARD SCOTT MD
IRS990/ProfessionalFundraisingInd00
IRS990/ProgramServiceRevenueGrp/BusinessCd0621500
IRS990/ProgramServiceRevenueGrp/Desc0EMBRYO DIAG TESTING
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IRS990/ProhibitedTaxShelterTransInd00
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IRS990/PYGrantsAndSimilarPaidAmt0103063
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IRS990/PYOtherRevenueAmt00
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IRS990/PYTotalExpensesAmt012058326
IRS990/PYTotalProfFndrsngExpnsAmt00
IRS990/PYTotalRevenueAmt09631499
IRS990/QuidProQuoContributionsInd00
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IRS990/RegularMonitoringEnfrcInd01
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IRS990/RelatedOrganizationCtrlEntInd00
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IRS990/ReportLandBuildingEquipmentInd01
IRS990/ReportOtherAssetsInd01
IRS990/ReportOtherLiabilitiesInd00
IRS990/ReportProgramRelatedInvstInd00
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IRS990ScheduleA/PubliclySupportedOrg509a2Ind0X
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IRS990/ScheduleBRequiredInd00
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IRS990ScheduleD/ExpensesNotReportedAmt00
IRS990ScheduleD/ExpensesNotRptFinclStmtAmt00
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IRS990ScheduleD/FootnoteTextInd0X
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IRS990ScheduleD/LeaseholdImprovementsGrp/DepreciationAmt02408
IRS990ScheduleD/LeaseholdImprovementsGrp/OtherCostOrOtherBasisAmt03994
IRS990ScheduleD/NetUnrealizedGainsInvstAmt0224164
IRS990ScheduleD/OtherAssetsOrgGrp/BookValueAmt012490000
IRS990ScheduleD/OtherAssetsOrgGrp/BookValueAmt11083791
IRS990ScheduleD/OtherAssetsOrgGrp/Desc0ENTERPRISE VALUE
IRS990ScheduleD/OtherAssetsOrgGrp/Desc1INVESTEMENT IN LLC
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IRS990ScheduleD/RevenueNotReportedFinclStmtAmt00
IRS990ScheduleD/RevenueSubtotalAmt08966143
IRS990ScheduleD/SupplementalInformationDetail/ExplanationTxt0THE FOUNDATION QUALIFIES AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C) 3 OF THE INTERNAL REVENUE CODE. THEREFORE, NO PROVISION OR LIABILITY FOR FEDERAL AND STATE INCOME TAXES HAS BEEN INCLUDED IN THESE FINANCIAL STATEMENTS. THE FOUNDATION RECOGNIZES THE EFFECT OF INCOME TAX POSITIONS ONLY WHEN THEY ARE MORE LIKELY THAN NOT TO BE SUSTAINED. MANAGEMENT HAS DETERMINED THAT THE FOUNDATION HAD NO UNCERTAIN TAX POSITIONS THAT REQUIRE FINANCIAL STATEMENT RECOGNITION AND/OR DISCLOSURE. THE FOUNDATION'S FEDERAL INCOME TAX RETURNS FOR 2014, 2015 AND 2016 ARE SUBJECT TO EXAMINATION BY THE IRS AND OTHER STATE TAXING AUTHORITIES, GENERALLY FOR THREE YEARS.
IRS990ScheduleD/SupplementalInformationDetail/FormAndLineReferenceDesc0PART X, LINE 2:
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IRS990ScheduleJ/AnyNonFixedPaymentsInd00
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IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/BaseCompensationFilingOrgAmt3155000
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IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/BonusFilingOrganizationAmount20
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IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/CompensationBasedOnRltdOrgsAmt20
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IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/CompReportPrior990RltdOrgsAmt00

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