Nautilus Management Inc

PART X, LINE 2:

“Footnote to the consolidated financial statements: the sorority and nautilus are each organized as not-for-profit corporations that are exempt from income taxes under section 501(c)(7) of the united states internal revenue code and similar state law. The exemption is on all income except unrelated business income. An unrelated trade or business of an exempt organization is any trade or business which is not substantially related to the exercise or performance of its exempt purpose. Income earned from non-members is recognized as unrelated business income to the extent such income is not set aside for charitable and educational purposes. Income that is properly set aside must be used for the qualifying purposes outlined in the set aside resolution. The outstanding balance of funds set aside as of july 31, 2025 was $4,648,939. The activities of nautilus include the activities of its single member llcs (note 1), which are exempt as programs under nautilus not-for-profit exemption and are included in the income tax filings of nautilus. The exemption is on all income except unrelated business income. Accounting principles generally accepted in the united states of america require management to evaluate tax positions taken by the organization and recognize a tax liability if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by various federal and state taxing authorities. Management has analyzed the tax positions taken by the organization, and has concluded that as of july 31, 2025, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the accompanying consolidated financial statements. The organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The organization has filed its federal and state income tax returns for periods through july 31, 2024. These income tax returns are generally open to examination by the relevant taxing authorities for a period of three years from the later of the date the return was filed or its due date (including approved extensions).”