Onic-Hidden Cove Inc.

“The organization maintains an escrow account for security deposits paid by tenants.”

“This entity is included in the consolidated audited financial statements of Orlando Neighborhood Improvement Corporation (ONIC). The text in ONIC's financial footnotes reads as follows: ONIC is exempt from federal income tax under provision of Section 501(c)(3) of the Internal Revenue Code. In addition, ONIC has been determined by the Internal Revenue Service not to be a private foundation within the meaning of Section 509(a) of the code. Consequently, no provision for income taxes has been included in the accompanying financial statements. In accordance with "Income Taxes" FASB Accounting Standards Codification Topic 740 (Topic 740), all entities are required to evaluate and disclose income tax risks. Topic 740 clarifies the accounting for uncertainty in tax positions and prescribes guidance related to the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The tax benefit from an uncertain tax position is only recognized in the statement of financial position if the tax position is more likely than not to be sustained upon an examination, based on the technical merits of the position. Interest and penalties, if any, are included in expenses in the statement of activities. As of September 30, 2016, ONIC had no uncertain tax positions that quality for recognition or disclosure in the financial statements. ONIC's income tax returns are subject to review and examination by federal authorities. ONIC is not aware of any activities that would jeopardize its tax-exempt status. ONIC is not aware of any activities that are subject to tax on unrelated business income, excise or other taxes. The tax returns for the fiscal years ended from 2013 to 2015 are open to examination by federal authorities.”