Civic Intelligence

Cancer Prevention Initiative Inc.

990 • Fiscal year 2017 • EIN 47-3425850

Jan 01, 2017 to Dec 31, 2017 • Filed on May 15, 2018

1217 Wilshire Blvd 3390Santa Monica, CA 90403

(844) 437-4891

Siviq Scores

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

Liabilities / Assets

85th percentile

0.67x

Higher debt load relative to assets than 85% of similar nonprofits.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2017

Liabilities / Revenue

95th percentile

4.86x

Higher debt load relative to revenue than 95% of similar nonprofits.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2017

Net Margin

1st percentile

-519%

Higher net margin than 1% of similar nonprofits.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2017

Top Officer Pay

92nd percentile

$227,723

Higher top officer pay than 92% of similar nonprofits.

Top officer pay equals 56.4% of source-year revenue.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Source year 2017

Asset Growth

13th percentile

-8.3%

Faster asset growth than 13% of similar nonprofits.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Annualized from 2016 to 2017

Revenue Growth

1st percentile

-88%

Faster revenue growth than 1% of similar nonprofits.

2017 filings • 501(c)3 • $1M-$5M nonprofits • Annualized from 2016 to 2017

Assets

Down

$2,944,284

Down $266,671 (-8.3%) from 2016

Net Assets

Down

$984,620

Down $2,092,835 (-68%) from 2016

Liabilities

Up

$1,959,664

Up $1,826,164 (+1368%) from 2016

Revenue

Down

$403,489

Down $2,878,407 (-88%) from 2016

Expenses

Up

$2,496,324

Up $1,948,086 (+355%) from 2016

Net Income

Down

-$2,092,835

Down $4,826,493 (-177%) from 2016

Historical Trend

Balance Sheet Trend

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

$4.0M$3.0M$2.0M$1.0M$0Assets 2015: $416,306Liabilities 2015: $72,509Net Assets 2015: $343,7972015Assets 2016: $3,210,955Liabilities 2016: $133,500Net Assets 2016: $3,077,4552016Assets 2017: $2,944,284Liabilities 2017: $1,959,664Net Assets 2017: $984,6202017Assets 2018: $2,632,592Liabilities 2018: $985,352Net Assets 2018: $1,647,2402018Assets 2019: $1,943,615Liabilities 2019: $1,083,256Net Assets 2019: $860,3592019Assets 2020: $1,546,694Liabilities 2020: $777,428Net Assets 2020: $769,2662020Assets 2021: $962,671Liabilities 2021: $501,296Net Assets 2021: $461,3752021Assets 2022: $1,056,196Liabilities 2022: $356,171Net Assets 2022: $700,0252022Assets 2023: $821,212Liabilities 2023: $145,996Net Assets 2023: $675,2162023Assets 2024: $2,225,249Liabilities 2024: $580,179Net Assets 2024: $1,645,0702024

Highlighted filing

2017

Assets$2,944,284
Liabilities$1,959,664
Net Assets$984,620

Operations Trend

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

$4.0M$2.0M$0-$2.0M-$4.0MRevenue 2015: $792,792Expenses 2015: $448,995Net Income 2015: $343,7972015Revenue 2016: $3,281,896Expenses 2016: $548,238Net Income 2016: $2,733,6582016Revenue 2017: $403,489Expenses 2017: $2,496,324Net Income 2017: -$2,092,8352017Revenue 2018: $1,224,228Expenses 2018: $561,608Net Income 2018: $662,6202018Revenue 2019: $297,410Expenses 2019: $1,084,291Net Income 2019: -$786,8812019Revenue 2020: $481,790Expenses 2020: $572,883Net Income 2020: -$91,0932020Revenue 2021: $151Expenses 2021: $308,042Net Income 2021: -$307,8912021Revenue 2022: $257,068Expenses 2022: $18,418Net Income 2022: $238,6502022Revenue 2023: $49,585Expenses 2023: $74,394Net Income 2023: -$24,8092023Revenue 2024: $1,673,681Expenses 2024: $703,827Net Income 2024: $969,8542024

Highlighted filing

2017

Revenue$403,489
Expenses$2,496,324
Net Income-$2,092,835
Jump To
Filing Snapshot
Filing Period
Jan 1, 2017 to Dec 31, 2017
Signed
May 15, 2018
Return Version
2017v2.3
Gross Receipts
$440,295
Mission and Program Overview

Mission

Cancer Prevention Initiative, Inc. (CPI) is a nonprofit corporation whose mission is to accelerate the discovery and development of new medicines that prevent cancer. CPI uses its research, medical and pharmaceutical expertise to invest in first-rate science that will discover new strategies for preventing cancer. Our strategy is to support research on prevention of inherited cancers as a path towards elimination of all cancers. CPI acts as a facilitator to ensure that good ideas can find sufficient funding to turn them into therapeutic solutions such as drugs or vaccines to prevent cancer. CPI provides financial support, guidance and expertise throughout the research and development process to help researchers use the resources (donations) for the highest possible impact.

Heritx, inc. Is a nonprofit corporation formed with the stated mission of preventing inherited cancer.

Balance Sheet Detail
LineBeginningEndChange
Assets
Savings and Temporary Cash Investments$1,121,832$2,639,304▲ $1,517,472
Pledges and Grants Receivable$2,052,398$255,000▼ $1,797,398
Cash and Non-Interest-Bearing Accounts$19,009$27,419▲ $8,410
Prepaid Expenses and Deferred Charges$6,745$14,724▲ $7,979
Land, Buildings, and Equipment, Net$0$128▲ $128
Accounts Receivable$0$0→ $0
Other Notes and Loans Receivable, Net$0$0→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Other Securities$0$0→ $0
Investments Program Related$0$0→ $0
Investments in Publicly Traded Securities$0$0→ $0
Intangible Assets$0$0→ $0
Inventories for Sale or Use$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$3,210,955$2,944,284▼ $266,671
Other Assets Total$10,971$7,709▼ $3,262
Liabilities
Grants Payable$120,000$1,933,134▲ $1,813,134
Accounts Payable and Accrued Expenses$13,500$26,530▲ $13,030
Mortgage Notes Payable Secured by Investment Property$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Other Liabilities$0$0→ $0
Deferred Revenue$0$0→ $0
Escrow Account Liability$0$0→ $0
Tax Exempt Bond Liabilities$0$0→ $0
Total Liabilities$133,500$1,959,664▲ $1,826,164
Net Assets / Fund Balance
Temporarily Rstr Net Assets$2,593,333$554,681▼ $2,038,652
Unrestricted Net Assets$484,122$429,939▼ $54,183
Permanently Rstr Net Assets$0$0→ $0
Total Net Assets Fund Balance$3,077,455$984,620▼ $2,092,835
Total Liabilities and Net Assets / Fund Balance$3,210,955$2,944,284▼ $266,671

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$128$0$128
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Thomas BockCEOFT$200,000$27,723$227,723
Joi MorrisSVP/gcFT$100,800-$100,800

Board Members and Trustees

Revenue and Support

Revenue Composition

Contributions and Grants
$400,726
Program Service Revenue
$0
Investment Income
$2,763
Other Revenue
$0
All Other Contributions
$400,726
Change in Net Assets
$-2,092,835

Audited Revenue Reconciliation

Revenue per Audited Statements
$398,995
Revenue Not Reported on Financial Statements
$4,494
Total Revenue per Audited Statements
$398,995
Total Revenue per Form 990
$403,489
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Grants and Similar Amounts Paid$1,922,634
Salaries, Compensation, and Employee Benefits$401,880
Other Expenses$171,810
Total Fundraising Expense$58,534
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Foreign Grants$1,251,194--$1,251,194
Grants to Domestic Orgs$671,440--$671,440
Current Officers, Directors, Trustees, and Key Employees$217,335$40,083$43,382$300,800
Fees for Services Legal$57,618--$57,618
Other Salaries and Wages$37,613$10,631$225$48,469
Fees for Services Accounting-$30,978-$30,978
Other Employee Benefits-$27,723-$27,723
Payroll Taxes$18,229$3,858$2,801$24,888
Travel$16,479$2,406$1,279$20,164
Conferences and Meetings$10,510$711$346$11,567
All Other Expenses$4,010$3,936$697$8,643
Information Technology$7,050$668$110$7,828
Advertising$4,079$515$1,211$5,805
Fees for Services Other--$4,930$4,930
Insurance-$4,142-$4,142
Depreciation Depletion-$3,262-$3,262
Other Expenses$547$2,519$19$2,538
Office Expenses$78$1,776$581$2,435
Total Functional Expenses$2,296,182$141,608$58,534$2,496,324

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Form 990$2,496,324
Expenses per Audited Statements$2,491,830
Total Expenses per Audited Statements$2,491,830
Expenses Not Reported on Financial Statements$4,494
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
Dana-farber Cancer Institute IncBoston, MA501(c)(3)Tissue Studies$372,982
Johns Hopkins UniversityBaltimore, MD501(c)(3)Tissue Studies$288,958
Baylor College of MedicineHouston, TX501(c)(3)Research Grant$8,000

International Summary

Spending
$1,252,094

International Compliance

Foreign grant records maintained
Yes
Activity in boycott countries
No
Foreign corporation ownership
No
Foreign partnership interest
No
Interest in foreign trust
No
Passive foreign investment company interest
No
Transfers to foreign corporations
No

International Activities

RegionActivityServicesOfficesEmployeesSpending
Europe (Including Iceland and Greenland)GrantmakingSpeaking Engagement--$1,176,194
North AmericaGrantmaking---$75,000
North AmericaProgram Services---$900
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

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

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Receivables from Disqualified Persons$0$0→ $0
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
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 B, Question 12C

Each covered person shall annually sign a statement that affirms that such person: 1. Has received a copy of the conflict of interest policy, 2. Has read and understands the conflict of interest policy, 3. Has agreed to comply with the conflict of interest policy, and 4. Understands that heritx, inc. Is a charitable organization and that in order to maintain its federal tax exemption and the trust of the public it must diligently avoid conflicts of interest or the appearance of any conflict and engage primarily in activities that accomplish one or more of its tax-exempt purposes.

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

All members of the board of trustees will receive a copy of the form 990 for review prior to its filing.

Form 990, Part VI, Section B, Lines 15A & 15B

The salaries of the organization's CEO and other key employees were based on review of 990s of comparable organizations and a reasonable compensation study with comparability data and benchmarking from an independent consultant. Independent Board members reviewed the comparability data and report from the independent consultant and deliberated to decide on the salary. Written minutes of this meeting were recorded and are maintained by the organization. Salary and job responsibilities are reflected in a written contract. This information is re-evaluated annually based on current market data.

Form 990, Part VI, Section A, Line 8B

THERE WERE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY DURING 2017. In 2017 the Board formed a Governance Committee. The committee reports to the Board but does not act without the full Board. Committees report on activities at regular Board meetings. Committee recommendations are reflected in and incorporated into Board meeting minutes.

Form 990, Part VI, Section C, Line 19

The organization complies with irc section 6104 in regards to public disclosure. As such, their annual information returns and governing documents filed with their tax exemption application are available for public inspection upon request.

Filing and Contact Details

Filer

Filer Name
Heritx Inc
EIN
47-3425850
In Care Of
% JOI MORRIS ESQ
Phone
8444374891
Address
1217 WILSHIRE BLVD 3390, SANTA MONICA, CA 90403

Signing Officer

Name
Joi Morris
Title
Sr. Vice President
Phone
8444374891
Signed
2018-05-15
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Thomas Bock
Formed
2015
Legal Domicile
De
Voting Board Members
7
Independent Board Members
5
Employees
4
Volunteers
15

Preparer

Firm
Holthouse Carlin & Van Trigt Llp
Address
3011 TOWNSGATE ROAD SUITE 400, WESTLAKE VILLAGE, CA 91361
Preparer
Stephanie Wilkinson
Phone
8053748555
Supplemental Narrative

Additional Explanations

Form 990, Part XII, Line 2C

Although the HeritX Board does not have any committees, the Board oversaw the work of the independent auditor. Board Chair Thomas Bock and Treasurer Jay Rasulo had primary responsibility for coordinating with the auditor and reviewing THE audit. The auditor presented a draft of the audit report to all members of the board for their review and questions, before finalizing the report.

Financial Statement Notes

Schedule D, Part X, Line 2

The organization has adopted guidance on accounting for uncertainty in income taxes issued by the financial accounting standards board. Management believes that the organization has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance.

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IRS990/Desc0The HeritX mission is to prevent inherited cancers. The first program, launched in 2015, is the Global HeritX Initiative to Prevent Inherited BRCA Cancers (The HeritX Initiative), which was publicly launched in November 2015 with a historic Banbury Conference at Cold Spring Harbor Laboratory. The Banbury Conference resulted in the first research and development (R&D) roadmap to prevent inherited BRCA cancer, which is now guiding research worldwide. Following the conference, HeritX connected with more than 200 research groups to identify ideas to prevent BRCA cancers, and carefully selected the most promising ideas to be advanced with HeritX support. HeritXs work includes co-design of all research with input from the HeritXs scientific team, which includes HeritXs drug development expertise. HeritX awarded 7 research grants totaling approximately $1,900,000 in 2017. These grants included five grants for an international collaborative cancer prevention vaccine project at the Netherlands Cancer Institute, Dana-Farber Cancer Institute, Johns Hopkins University and ISA Pharmaceuticals. Other grants included projects at Womens College Hospital in Toronto and at Baylor College of Medicine to identify substances that improve the function of broken BRCA genes.
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IRS990/MissionDesc0HERITX, INC. IS A NONPROFIT CORPORATION FORMED WITH THE STATED MISSION OF PREVENTING INHERITED CANCER BY RAISING AWARENESS AND PROVIDING RESOURCES AND EXPERTISE TO PROMOTE RESEARCH AND INNOVATION FOR DEVELOPMENT OF THERAPIES FOR THE PREVENTION AND ERADICATION OF INHERITED CANCERS. HERITX'S STRATEGY IS TO CONVENE LEADING EXPERTS WORLDWIDE IN THE FIELD OF CANCER RESEARCH, FACILITATE THE EXCHANGE OF IDEAS AND COLLABORATION, AND COORDINATE, DESIGN, DIRECT AND FUND RESEARCH EFFORTS TO ACCELERATE THE ACHIEVEMENT OF CANCER PREVENTION.
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IRS990/ProgSrvcAccomActy2Grp/Desc0HeritX continued to expand the Prevention Advocacy Network (PAN) in 2017. The goal of the PAN is to bring the voice of the BRCA community to the research and development process, including decisions on research direction and priorities. PAN forums in 2017 were held in Kanas City, Missouri in collaboration with the Male Breast Cancer Coalition and in Calgary, Canada in collaboration with the HBOC Society. The PAN is a community engagement platform that will ensure that prevention research focuses on a future preventive therapy that will meet the needs of the community not only in terms of the level of risk reduction but also in terms of convenience and side effects. Today, surgery is the only option for preventing BRCA cancers. Many women choose this route, removing breasts and ovaries and enduring the consequences inability to breastfeed their children, loss of sensation, and surgical menopause among others. But BRCA families want their daughters to have better options. Safe effective prevention that leaves people healthy and whole is desperately needed. Men carrying a BRCA mutation do not have any acceptable options at all, and a preventive therapy for BRCA cancers therefore also needs to protect people from BRCA prostate, pancreatic and skin cancers. The PAN serves as a mechanism to gather and funnel patient input to the researchers dedicated to BRCA prevention research. Through the PAN, families can voice their vision for a better future without surgery and can be sure that their needs will be heard by researchers because HeritX is incorporating these community needs into its research agenda and scientific conferences. In addition to the PAN, HeritX has extended its community outreach and education initiatives through multiple speaking engagements, community forums and educational programs, including participating as the keynote speaker at the HBOC Societys annual "Risky Genes" conference, a presentation in the opening session of the global Precision Medicine Leaders Summit, and a segment on Good Morning America about the cancer prevention vaccine program that aired on Memorial Day 2017.
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IRS990ScheduleA/Form990ScheduleAPartVIGrp/ExplanationTxt0THE GIFTS, GRANTS, CONTRIBUTIONS, AND MEMBERSHIP FEES AMOUNT FOR THE 2016 TAX YEAR EXCLUDES A $2,000,000 UNUSUAL GRANT.
IRS990ScheduleA/Form990ScheduleAPartVIGrp/FormAndLineReferenceDesc0SCHEDULE A, PART II, SECTION A, LINE 1, COLUMN (D)
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IRS990ScheduleD/SupplementalInformationDetail/ExplanationTxt0THE ORGANIZATION HAS ADOPTED GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ISSUED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD. MANAGEMENT BELIEVES THAT THE ORGANIZATION HAS TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE.
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