Three Roots Capital

“The oak ridge chamber of commerce was instrumental in the organization of technology 2020, therefore, the organization documents of technology 2020 provide that the president and chairman of the oak ridge chamber of commerce both will have board seats. The oak ridge chamber must approve any action that encumbers the building at 1020 commerce park drive, oak ridge, tn.”

“The data for form 990 is assembled by the chief financial officer and the 990 forms are completed with the assistance of an independent cpa in conjunction with the annual audit of the financial statements. The completed form is reviewed by the president and chief executive officer. The 990 tax form is subsequently reviewed by the financial oversight committee.”

“Upon entering service and then periodically thereafter, questionnaires are distributed to board members, officers, key employees and senior managers related to the organization's conflict of interest policies. Responses are reviewed by the independent auditors; management then prepares financial statement disclosures as appropriate.”

“Technology 2020 utilizes a compensation committee comprised of independent board members which reviews and approves the compensation package for officers and key employees. Each package is reviewed in conjunction with a job description, performance review, and comparable compensation data. Outside consultants are both included in the committee and consulted regarding specific issues. Minutes of meetings and documentation of compensation packages are maintained.”

“Technology 2020 makes its organizing documents and policy statements available upon request. Financial statements are presented regularly to various internal committees and the full board. The board consists of community members and meetings often include guests and other interested parties.”

“Line 3, column a & b includes $250,000 of dividend distribution from enterprise support, inc.(esi), a wholly-owned (100% by technology 2020) corporate subsidiary. Esi files its own form 1120 and pay the appropriate taxes on any net income. Therefore, although reflected as related or exempt function revenue, which the $250,000 is, this amount is more along the lines of a return of capital out of previously taxed earnings & profit of esi.”

“Interest income of $79 reported on the 2013 form 1120 for enterprise support, inc. Has been eliminated from the total amount report on line 3, columns a & b.”

“A gain of $3,848 reported on the 2013 form 1120 for enterprise support, inc. Has been eliminated from the total amount report on line 7a. In turn, this gain and net gain reported on lines 7c and 7d, columns (a) & (b) are reduced by the same amount as eliminated on line 7a.”

“Reconciliation of form 990, part viii, line 12, columns (a) & (b) to audited financial statements: line 12, column (a), total revenue $2,803,204 plus: esi separately reported interest income 79 plus: esi separately reported gain 3,848 less: esi subsidiary dividends ( 250,000) ------------ total revenues per audited financials $2,557,131 ============ line 12, column (b), exempt function revenue $2,187,553 plus: esi separately reported interest income 79 plus: esi separately reported gain 3,848 less: esi subsidiary dividends ( 250,000) ------------ total program revenues per audited financials $1,941,480 ============”

“Tnfirst, llc (formerly tech 2020 services, llc) is a single member, not-for-profit, limited liability company owned 100% by technology 2020. Tech 2020 services, llc had limited activities in 2012, but those activities were reported in the program activities of advanced manufacturing & prototyping and the center for entrepreneurial growth. In 2013, the entity was renamed tn first, llc to further the high school robotic competition program activities of usfirst in tennessee. Funding for tn first, llc is provided by private sponsorship, and, in 2013, certain activities of a grant awarded to the organization from the us department of commerce to stimulate workforce development of science and technology skills.”

“Total expenses of $1,649 reported on the 2013 form 1120 for enterprise support, inc. Have been eliminated from the total expenses and management and general expenses on line 24e, columns (a) & (c) respectively.”

“Reconciliation of form 990, part ix, line 25, columns (a) & (c) to audited financial statements: line 25, column (a), total functional expenses $2,871,896 plus: esi separately reported expenses 1,649 ---------- total functional expenses per audited financials $2,873,545 ========== line 25, column (c), total mgmt & general expenses $ 577,673 plus: esi separately reported expenses 1,649 ---------- total mgmt & general expenses per audited financials $ 579,322 ==========”

“Pursuant to a contract, 3d printers were purchased and then contributed for high school student robotic competitions. This activity was done through the advance manufacturing program services.”

“Enterprise support, inc. - prior years cumulative adjustment -161. Enterprise support, inc. - net income including previously tax income 2,278.”

“There has been no significant or material change from prior years.”