Neurodiverse Community Holdings Inc

Fin 48 (asc 740)

“FORM 990, SCHEDULE D, PART X, LINE 2 29 Acres and NCH are exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code, except to the extent it has unrelated business income. For the years ended December 31, 2024 and 2023, these organizations haVE no net unrelated business income Accordingly, no provision for income taxes has been provided in the accompanying consolidated financial statements. These organizations are not recognized as private foundations. These organizations have concluded that it does not have any unrecognized tax benefits resulting from current or prior period tax positions. These organizations are exempt from Texas state franchise tax according to the Texas Comptroller of Public Accounts. For federal income tax purposes, Studio 29 has elected to be taxed as a corporation and is subject to franchise tax in the state of Texas. For all significant items where there is a timing difference between financial and income tax reporting, deferred taxes are provided after benefits resulting from any net operating loss carryforwards and credit carryforwards are utilized. Studio 29 has a net operating loss carry forward of $9 at December 31, 2023. The net operating less is expected to be utilized to offset taxable income in future periods. Net operating loss carryforwards have no expiration date; however, utilization is limited to 80% of taxable income in a given year. Studio 29 was closed as of December 31, 2023. Accordingly, no additional disclosures have been made on the consolidated financial statements regarding ASC 740, Income Taxes. The Organization's informational return filed are generally subject to examination for three years after the later of the due date or date of filing. As a result, the Organization is no longer subject to income tax examinations by tax authorities for years prior to 2021.”