Coachart Org

“The organization has been designated as tax-exempt under internal revenue code section 501(c)(3), is also exempt from state franchise taxes under section 23701(d) of the california revenue and taxation code, and is not generally subject to federal or state income taxes. However, the organization is subject to income taxes on any net income that is derived from a trade or business regularly carried on and not in furtherance of the purposes for which it was granted exemption. No income tax provision has been recorded as, in the opinion of management, the net income from any unrelated trade or business is not material to the basic financial statements taken as a whole. The organization adopted fasb asc topic no. 740, accounting for uncertainty in income taxes (asc 740). In accordance with asc 740, the organization recognizes the impact of tax positions in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. To date, the organization has not recorded any uncertain tax positions. The organization would recognize the potential accrued interest and penalties related to uncertain tax positions in income tax expense. The organization is subject to potential income tax audits on open tax years by any taxing jurisdiction in which it operates. The statute of limitations for federal purposes is three years and for california is four years.”

“In march 2020, congress passed the paycheck protection program (ppp) under division a,title i of the coronavirus aid, relief, and economic security act, authorizing loans to small organizations for use in paying employees that they continue to employ throughout the covid-19 pandemic and for rent, utilities, and interest on mortgages. Loans obtained through the program are eligible to be forgiven as long as the proceeds are used for qualifying purposes and certain other conditions are met. On april 24, 2020, the organization received a loan in the amount of $170,145 through the ppp. On june 11, 2021, the organization received notice from the sba that the full amount of the loan was forgiven, and this forgiveness is presented separately on the statement of activities. In january 2021, the sba announced a second draw of ppp loans for eligible entities. In march 2021, the organization was approved to receive an additional loan of $176,037 of ppp funds. Per the terms of the loan, the full amount will be forgiven as long as loan proceeds are used to cover payroll costs and other specified nonpayroll costs (provided any nonpayroll costs do not exceed 40% of the forgiven amount) over a 24-week period after the loan is made; and employee and compensation levels are maintained. The organization complied with the above terms in order to qualify for full loan forgiveness. On may 6, 2022, the organization received notice that the second draw loan has been forgiven in full.”