Memphis Bioworks Foundation

PART X, LINE 2:

“Memphis bioworks foundation dba memphis biotech foundation is classified by the internal revenue service as a corporation exempt from income taxes under section 501(c)(3) of the internal revenue code. Its subsidiaries, innova memphis, inc., tma development corporation, memphis specialized laboratory, inc., memphis specialized operations, inc. And midsouth sustainable energy solutions, inc. Are corporations subject to federal and state income taxes. Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements. Deferred tax assets and liabilities, if significant, are recognized for the estimated future tax effects attributed to temporary differences between the book and tax bases of assets and liabilities and for carryforward items. The measurement of current and deferred tax assets and liabilities is based on enacted law. Deferred tax assets are reduced, if necessary, by a valuation allowance for the amount of tax benefits that may not be realized. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. As of december 31, 2017, the organization has not recognized liabilities for uncertain tax positions or associated interest and penalties. The organization files income tax returns in the u.s. Federal jurisdiction and various state jurisdictions. With few exceptions, the organization is no longer subject to u.s. Federal and state tax examinations by tax authorities for years before 2014.”