Jaars Inc.

“Pt III, Line 4a (cont'd) Program Service Accomplishments: Water Transportation -- JAARS helps its partners assess their travel challenges, advises on the best boats for their unique situations, and acquires and/or outfits maritime vessels for both partner and JAARS program use. If partners need a large vessel, JAARS helps them plan, launch, and/or run the program. JAARS can also teach partner staff how to swim, use safety gear, and give first aid.”

“Pt III, Line 4d Other Program Services: Information Technology -- JAARS works with SIL International and scores of other global partners to determine what IT, local power generation and internet connectivity solutions are most needed by on-the-ground language development and translation teams; and then plans, funds, and/or facilitates locally appropriate and sustainable solutions to their IT and connectivity challenges. JAARS also provides office space and support services to about 40 SIL IT staff at its headquarters.”

“Pt III, Line 4d Other Program Services: Training -- JAARS works with scores of global partners to provide both on-campus and overseas training in multiple areas, including but not limited to: intercultural communications; aviation, land and maritime vehicle operations/maintenance/safety; and more. JAARS' partners depend upon our standards in aviation and intercultural training, both to assess incoming staff and to help ensure the safe and effective sustainability of field operations.”

“Form 990 was prepared by staff, reviewed by an independent, retired CPA and by the organization's top management, then forwarded to the Board of Directors for review prior to filing.”

“All Board of Directors and Officers must annually sign a conflict of interest statement to ensure compliance with the organization's conflict of interest policy. The Board Secretary reviews the signed conflict of interest state-ments and ensures this is accomplished annually at the May Board meeting.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request. The financial statements are available on the organization's website.”

“Pt XI, Line 9 - - - Preferred Debt Agreement - - - From 2004 to 2010 JAARS (and other unrelated mission aviation organizations) provided deposits to Quest Aircraft Company for the purpose of developing a unique, purpose-built aircraft to meet emerging mission aviation needs. In exchange, Quest Aircraft Company agreed to deliver one Kodiak 100 at cost after the production of every 10 aircraft. In 2011 Quest Aircraft Company entered into a recapitalization and restructuring that established New Quest Aviation Holding Company, LLC (New Quest) as the manufacturer of the Kodiak 100 aircraft and converted previously recorded notes receivable and aircraft advances into preferred debt with Quest Aircraft Company, which then became Old Quest. Old Quest became a capital investor in New Quest. Since 2011 the preferred debt in Old Quest has been valued at cost plus accrued interest at an annual interest rate of 2.33% and redeemable through discounts on aircraft purchases. Between 2008 and 2013 JAARS received a fleet of four Kodiak 100s that were placed in service by SIL-Papua New Guinea, realizing total purchase discounts of approximately $1,214,000. On October 1, 2014, New Quest, manufacturer of the Kodiak 100, was restructured again with Old Quest moving from a capital investor into an equity position with New Quest. The structure of New Quest and the equity position of Old Quest made a full payoff of the preferred debt unlikely. JAARS reduced the value of the preferred debt on its books to $355,000 as of September 30, 2014, resulting in a loss on preferred debt of $4,379,735 during the year ended September 30, 2014. Subsequently, in fiscal year 2015, New Quest was sold. The sales agreement permitted JAARS to receive a portion of its original preferred debt as payment in full. In April, 2015, JAARS received $1,681,349, resulting in a gain on preferred debt of $1,326,349 during the year ended September 30, 2015. Combining the activity of fiscal years 2014 and 2015 results in a net loss of $3,053,386 on JAARS' preferred debt position at Quest.”

“Pt VI, Line 17 List of states requiring a copy of Form 990 California, District of Columbia, Florida, Kansas, Kentucky, Maryland, Minnesota, New Hampshire, Ohio, Tennessee, Virginia, Wisconsin, West Virginia”

“See schedule o 215972. 212927. 0.”