Goodwill Ventures Inc.

PART X, LINE 2:

“The consolidated group consists of not-for-profit organizations exempt from federal and state income taxes under provisions of section 501(c)(3) of the internal revenue code and corresponding state provisions. The internal revenue service has determined that the entities in the consolidated group are not private foundations within meaning of section 509(a). The income taxes topic of the fasb asc 740 clarifies the accounting for uncertainty in income taxes recognized in an entity's financial statements. Asc 740 requires an entity to disclose the nature of uncertain tax positions taken, if any, when filing its income tax return utilizing a two-step process to recognize and measure any uncertain tax positions taken. The entity recognizes a tax benefit only if it is more likely than not the position would be sustained in a tax examination, with a tax examination being presumed to occur. No tax benefit will be recorded on tax positions not meeting the more likely than not test. Interest and penalties accrued or incurred, if any, as a result of applying asc 740 will be recorded to interest expense and other expense, respectively. Based on its evaluation, the consolidated group has concluded that there are no uncertain tax positions requiring recognition in the consolidated financial statements. The evaluation was performed for all federal and state tax periods still subject to examination. The organization's and the affiliate's 2019 through 2020 federal and state exempt organization returns remain subject to examination by the irs and state taxing authority. Goodwill ventures' 2020 and 2021 federal and state exempt organization returns remain subject to examination by the irs and state taxing authority.”