Plymouth Housing Group and Subsidiaries

“Plymouth and open door ventures are exempt from federal income tax under section 501(c)(3) of the internal revenue code and state income tax and have been classified as other than a private foundation. Accordingly, no provision for federal and state taxes on revenue and income has been recognized in the accompanying financial statements. Generally, the federal and state tax returns were subject to examinations from three years after the later of the original or extended due date or the date filed with the applicable tax authority. Even though plymouth is recognized as tax exempt, it still may be liable for tax on its unrelated business income (ubi). Phg evaluates uncertain tax positions through its review of the sources of income to identify ubi and certain other matters, including those which may affect its tax exempt status. The effect of the uncertainty would be recorded if the outcome was considered probable and reasonably estimable. As of december 31, 2017 and 2016, phg had no uncertain tax positions requiring accrual. St. Charles hotel llc, second & stewart llc, third & blanchard llc, first & cedar llc, pontius llc, 2013 third avenue llc and cherry street llc are treated as pass-through entities for income tax purposes and, as such, are not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by their owners on their respective income tax returns. These entities' federal tax statuses as pass-through entities are based on their legal status as limited partnerships and limited liability companies. Accordingly, these entities are not required to take any tax positions in order to qualify as pass-through entities. These entities are required to file and do file tax returns with the internal revenue service and other taxing authorities. Accordingly, these consolidated financial statements do not reflect a provision for income taxes and these entities have no other tax positions which they must consider for disclosure. There has been no interest or penalties recognized in the consolidated statements of activities or consolidated statements of financial position for the years ended december 31, 2017 and 2016. Generally, the federal returns are subject to examination for three years after the later of the original or extended due date or the date filed with the applicable tax authority.”

“Revenue from affiliates 5,995,453. Fundraising event expense 360,948. Gaming expense 31,508. Rental expense 674,689. G/l on sale of securities 160.”

“Intercompany activity eliminated on financial statements 3,097,160. Grants 108,995. Insurance claims 2,743.”

“Fundraising event expense 360,948. Expenses from affiliates 9,838,055. Rental expense 674,689. G/l on securities 160. Gaming expense 31,508.”

“Intercompany activity eliminated on financial statements 1,304,676. Grants 108,995. Insurance claims 2,743. Rounding 11.”