Path Drug Solutions

“In accordance with the november 21, 2017, pds board of directors resolution to wind up and dissolve pds, pds received the state of california attorney general's waiver of objection to the disposition of assets upon dissolution of pds on november 20, 2018. The california secretary of state subsequently accepted the certificate of dissolution for pds on december 31, 2018. After all of pds' known debts and liabilities were paid or adequately provided for, the remaining corporate assets of pds were transferred to path in accordance with pds' articles of incorporation and the asset transfer agreement executed by path and pds and accepted by the california attorney general and secretary of state.”

“The form 990 was prepared by an outside accounting firm (gelman, rosenberg & freedman, cpas) using information provided by path accounting services staff. Path senior management reviewed the draft form. A copy of the draft was sent to path's board of directors for comment. After the comment period, the chief financial officer signed the form.”

“Pds has a written conflict of interest policy under which all pds board members and officers must complete a conflict of interest disclosure form each year. Pds does not have employees. Pds is a supporting organization to path within the meaning of internal revenue code section 509(a)(3), and pds contracts with path for management services. Path has a written conflict of interest policy under which all path board members, officers, and staff at higher than a designated level must complete a conflict of interest disclosure form each year. All pds and path disclosure forms are reviewed and kept on file. A conflict management plan is developed for any employee with a significant actual or perceived conflict of interest.”

“Path governing documents, conflict of interest policy, and financial statements are available to the public upon request; most documents are also available online.”

“Pds disolved effective december 31, 2018 and ceased conducting activities.”

“For the year ended december 31, 2018, the organization adopted the financial accounting standards board's accounting standards update (asu) no. 2018-08 - not-for-profit entities (topic 958): clarifying the scope and the accounting guidance for contributions received and contributions made for revenue transactions. The update assists entities in (1) evaluating whether transactions should be accounted for as contributions (nonreciprocal transactions) or as exchange (reciprocal) transactions and (2) determining whether a contribution is conditional. The primary effect of adoption of this asu for the organization is that certain awards received that were previously treated as unconditional are now treated as conditional. As a result, revenue for these awards is recognized when the conditions are met during the award term, whereas previously revenue had been recognized when the awards were awarded. Path has elected to adopt the changes from this asu retrospectively to the 2017 financial statements. The net effect of this change is presented as an other change in net assets. -5,792,439.”