2016-06-07T10:02:12-05:00 2015-12-31 131639826 EISNERAMPER LLP 130 NORTH 18TH STREET SUITE 3000 PHILADELPHIA PA 191032757 990 2015-01-01 231645908 UNIVERSITY CITY SCIENCE CENTER UNIV 2159666272 3711 MARKET STREET 8TH FLOOR PHILADELPHIA PA 19104 STEPHEN S TANG PRESIDENT 2159666272 2016-05-31 1 EDWARD S LEONARD P01261018 2158818800 2015 2016-09-27 15:27:22Z STEPHEN S TANG 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 39034292 0 X WWW.SCIENCECENTER.ORG X 1963 PA TO ACCELERATE TECHNOLOGY COMMERCIALIZATION IN THE GREATER PHILADELPHIA REGION. 26 25 74 0 0 0 2332245 4605546 21368957 22673873 107151 6922741 0 971879 23808353 35174039 556969 410930 0 0 4815629 5255866 0 0 516000 17932958 20987065 23305556 26653861 502797 8520178 84453970 86869382 71388570 65852235 13065400 21017147 X TO ACCELERATE COMMERCIALIZATION OF THE REGION'S MOST PROMISING SCIENCE AND TECHNOLOGY INNOVATIONS, THEREBY PROMOTING TECHNOLOGY-BASED ECONOMIC DEVELOPMENT, COLLABORATION, EDUCATION AND THE CONTINUING REDEVELOPMENT OF THE SCIENCE CENTER CAMPUS IN UNIVERSITY CITY. 0 0 1668446 1303967 SEE DETAIL SCHEDULE O NARRATIVE 3832958 68838 SEE DETAIL SCHEDULE O NARRATIVE 14440022 18506445 SEE DETAIL SCHEDULE O NARRATIVE 924166 410930 3794623 QED PROOF OF CONCEPT PROGRAMIN EARLY 2009 THE SCIENCE CENTER LAUNCHED THE NATION'S FIRST MULTI-INSTITUTIONAL PROOF-OF-CONCEPT PROGRAM TO FUND AND PROMOTE THE DEVELOPMENT AND COMMERCIALIZATION OF EARLY-STAGE LIFE SCIENCE TECHNOLOGIES AT ACADEMIC RESEARCH INSTITUTIONS. THIS PROGRAM - NAMED "QED", AFTER THE LATIN PHRASE QUOD ERAT DEMONSTRANDUM ("THAT WHICH MUST BE DEMONSTRATED") - PROVIDES FUNDING AND BUSINESS DEVELOPMENT SUPPORT FOR ACADEMIC RESEARCHERS THROUGHOUT GREATER PHILADELPHIA AND CENTRAL PA BY SUPPORTING EARLY-STAGE LIFE SCIENCE R&D WITH HIGH COMMERCIAL POTENTIAL. AS ANGEL INVESTORS, VENTURE CAPITALISTS, AND ESTABLISHED COMPANIES INCREASINGLY INVEST IN LATER-STAGE ENTERPRISES, FINDING EARLY-STAGE FUNDING TO ACCELERATE INNOVATION HAS BECOME MORE DIFFICULT. QED ASSISTS PROMISING RESEARCHERS IN BRIDGING THE GAP - OFTEN REFERRED TO AS THE "VALLEY OF DEATH" - BETWEEN PUBLICLY-FUNDED LABORATORY RESEARCH AND PRIVATELY-FUNDED TECHNOLOGY COMMERCIALIZATION AND PRODUCT DEVELOPMENT. QED LEVERAGES THE SCIENCE CENTER'S RELATIONSHIPS WITH UNIVERSITIES, GOVERNMENT AGENCIES, AND PUBLIC AND PRIVATE COMPANIES, DRIVING TECHNOLOGY TRANSFER AND NEW BUSINESS FORMATION, ADVANCING ENTREPRENEURSHIP, AND ENCOURAGING INNOVATION, COMPETITIVENESS, AND KNOWLEDGE-BASED RETENTION AND EXPANSION. THE PROGRAM'S KEY GOAL IS TO MARSHAL EXISTING REGIONAL RESOURCES TO SUBSTANTIALLY REDUCE INVESTMENT RISK IN BOTH EARLY-STAGE LIFE SCIENCE AND DIGITAL HEALTH R&D PROJECTS, PREPARING THEM FOR ESTABLISHED HEALTH CARE COMPANIES AND PRIVATE INVESTORS, WITHOUT ADDING TO THE PROLIFERATION OF SUB-SCALE, UNDERCAPITALIZED VENTURES ALREADY IN THE MARKET. BY ENGAGING THE REGION'S ACADEMIC INSTITUTIONS, RESEARCH SCIENTISTS, ENTREPRENEURS, INVESTORS, AND INDUSTRY STAKEHOLDERS IN EARLY-STAGE COMMERCIALIZATION, THE SCIENCE CENTER WILL ULTIMATELY INCREASE THE PACE AND VALUE OF TECHNOLOGY TRANSFER IN THE REGION. QED GOES BEYOND A TYPICAL GAP FUND IN TWO PRIMARY RESPECTS THAT CAN BE APPLIED TO ANY RESEARCH AREA. FIRST, IT ADDS COMMERCIAL GUIDANCE AS A CRITICAL, EARLY COMPONENT. THIS GUIDANCE TAKES THE FORM OF BUSINESS ADVISORS, SPECIALIST CONSULTANTS (E.G. PATENT LAWYERS, REGULATORY EXPERTS, AND MEDICAL REIMBURSEMENT CONSULTANTS), TECHNICAL AND CLINICAL REVIEW OF TECHNOLOGY BY OUTSIDE REVIEWERS, AND MARKET-BASED SCREENING AND SELECTION. SECOND, IT PROMOTES COMPETITIVE PARTICIPATION BY A LARGE NUMBER OF REGIONAL RESEARCH INSTITUTIONS, INCORPORATING TRANSPARENT PROCESSES AND IDENTIFYING PROJECTS WITH THE GREATEST COMMERCIAL POTENTIAL. CURRENTLY, A TOTAL OF 21 RESEARCH INSTITUTIONS IN PENNSYLVANIA, NEW JERSEY AND DELAWARE PARTICIPATE IN THE PROGRAM. PROJECTS ARE REVIEWED, PRIORITIZED, AND RECOMMENDED FOR FUNDING BY A SELECTION TEAM COMPRISED EXCLUSIVELY OF PROFESSIONALS WHO WORK IN VENTURE CAPITAL AND INDUSTRY, REPRESENTING NUMEROUS REGIONAL AND NATIONAL FIRMS AND COMPANIES. PARTICIPATING ACADEMIC INSTITUTIONS, INVESTORS, AND COMPANIES ARE LISTED AT HTTP://SCIENCECENTER.ORG/PROGRAMS/QED. EACH PROJECT SELECTED FOR FUNDING RECEIVES UP TO $200,000 OVER 12 MONTHS, WITH HALF OF THE FUNDING PROVIDED BY THE SCIENCE CENTER AND THE OTHER HALF BY THE SCIENTIST'S HOST INSTITUTION. CONTINUED FUNDING DURING THE PROJECT IMPLEMENTATION PHASE IS CONDITIONAL UPON SATISFYING THE OBJECTIVES OUTLINED IN THE R&D PLAN, ACCORDING TO MILESTONES AND SCHEDULE. THE QED STAFF MEETS REGULARLY WITH THE PROJECT TEAMS, AND THE INVESTIGATORS PROVIDE PERIODIC PROGRESS UPDATES ON RESEARCH AND COMMERCIALIZATION ACTIVITIES. DURING THIS PHASE, THE QED STAFF ALSO ASSISTS WITH THE IDENTIFICATION AND PURSUIT OF APPROPRIATE SOURCES OF FOLLOW-ON FUNDING FOR SUCCESSFUL PROJECTS THAT EXIT THE PROGRAM. PHASE 1 VENTURES (P1V)P1V IS A TECHNOLOGY ACCELERATOR FOR NEW BUSINESS FORMATION AND GROWTH. FOR ACADEMIC INSTITUTIONS SEEKING TO COMMERCIALIZE TECHNOLOGIES THROUGH NEW STARTUPS, P1V IS A TURNKEY APPROACH TO THE MARKET-DRIVEN CREATION AND DEVELOPMENT OF NEW INVESTIBLE COMPANIES. P1V PROVIDES STRATEGIC FUNDING; INDEPENDENT PROVEN MANAGEMENT, CORPORATE STRUCTURE AND RESOURCES THAT AVOID INSTITUTIONAL CONFLICT OF INTEREST; AND CONNECTIONS TO NETWORKS OF ENTREPRENEURS, INVESTORS, AND INDUSTRY PARTNERS. TECHNOLOGIES WITH COMMERCIAL PROMISE ARE SELECTED AND NURTURED FOR THE PREPARATION OF COMPETITIVE GRANT APPLICATIONS. PROJECTS THAT SECURE SBIR/STTR FUNDING THROUGH P1V ARE ELIGIBLE FOR ADDITIONAL SUPPORT AND SERVICES, INCLUDING SUPPLEMENTARY FUNDING, MANAGEMENT AND ADVISORY EXPERTISE, AND PHYSICAL SPACE. THE GOAL FOR EACH OF THESE "PHASE 1" PROJECTS IS TO COMPLETE RESEARCH MILESTONES, VALIDATE MARKET OPPORTUNITIES, AND PREPARE AND SUBMIT A COMPETITIVE "PHASE 2" SBIR/STTR APPLICATION. P1V IS A MANAGED, STANDARDIZED, MULTI-INSTITUTIONAL PROCESS THAT WILL LAUNCH NEW COMPANIES IN A COST-EFFICIENT MANNER, LEVERAGING FEDERAL SBIR/STTR FUNDING. P1V WILL TEST THE SCIENTIFIC AND MARKET FEASIBILITY OF TECHNOLOGIES FOR NEW COMPANY FORMATION AND LAUNCH, THEREBY ENHANCING THE ABILITY OF THESE PROJECTS TO ATTRACT GRANTS AND PRIVATE SECTOR INVESTMENT. P1V WILL PROVIDE ACCESS TO STRATEGIC FUNDING; INDEPENDENT MANAGEMENT, CORPORATE STRUCTURE AND RESOURCES THAT AVOID INSTITUTIONAL CONFLICTS OF INTEREST; PROVEN EXPERTISE IN EARLY PRODUCT DEVELOPMENT AND PROJECT MANAGEMENT; AND CONNECTIONS TO NETWORKS OF ENTREPRENEURS, INVESTORS, AND INDUSTRY PARTNERS.P1V IS BEING LAUNCHED AS A PILOT WITH FUNDING FROM THE US ECONOMIC DEVELOPMENT ADMINISTRATION, THE SCIENCE CENTER, ACADEMIC PARTNER INSTITUTIONS, AND OTHERS. THROUGH P1V, THE SCIENCE CENTER WILL CAPITALIZE ON AND EXPAND ITS DEEP RELATIONSHIPS WITH UNIVERSITIES AND HEALTHCARE INSTITUTIONS THROUGHOUT THE TRI-STATE GREATER PHILADELPHIA AREA AND BEYOND, IN ORDER TO FACILITATE MORE (AND BETTER) START-UP COMPANY FORMATION THAT WILL ULTIMATELY LEAD TO ECONOMIC GROWTH AND JOB CREATION. AS A PUBLIC-PRIVATE PARTNERSHIP, P1V WILL BE ECONOMICALLY VIABLE BECAUSE IT WILL LEVERAGE SBIR/STTR FUNDING AND AGGREGATE RESOURCES THAT CAN BE SHARED AMONG SEVERAL PROJECTS, CREATING ECONOMIES OF SCALE. AS A COLLABORATIVE PLATFORM, P1V WILL PROVIDE GREATER OPPORTUNITIES FOR INVENTORS, INSTITUTIONS, ENTREPRENEURS AND INVESTORS TO FORM AND GROW SPINOUT COMPANIES AROUND EARLY-STAGE TECHNOLOGIES WITH HIGH COMMERCIAL POTENTIAL.INNOVATION CENTER @3401LOCATED AT 3401 MARKET STREET, THE INNOVATION CENTER @3401 IS A COLLABORATION BETWEEN THE SCIENCE CENTER AND DREXEL UNIVERSITY, AND IS HOME TO DREAMIT VENTURES. OPENED IN JUNE OF 2014, THIS NEW SYNERGISTIC PROGRAM SUPPORTS INNOVATION, COLLABORATION, AND BUSINESS CREATION. THE INNOVATION CENTER @3401 BUILDS UPON THE SUCCESS OF DREXEL'S EXCITE CENTER AND THE SCIENCE CENTER'S LONG AND IMPACTFUL TRADITION OF INCUBATING STARTUPS AND CONVENING COMMUNITIES AROUND INNOVATION AND ENTREPRENEURSHIP.DIGITAL HEALTH ACCELERATORLAUNCHED IN 2014, THE DIGITAL HEALTH ACCELERATOR FOCUSES ON COMPANIES DEVELOPING A HEALTHCARE PRODUCT COMPRISING A DIGITAL COMPONENT. TO BE ELIGIBLE, COMPANIES MUST HAVE A PRODUCT THAT IS AT LEAST AT PROTOTYPE STAGE AND READY TO BE PLACED INTO THE HANDS OF CUSTOMERS. THE DIGITAL HEALTH ACCELERATOR PROVIDES FUNDING, MENTORSHIP (INTELLECTUAL PROPERTY, SALES AND MARKETING, REGULATORY, FUNDRAISING ETC.), WARM INTRODUCTIONS, AND A FLEXIBLE WORKPLACE FOR PARTICIPANTS. THE INAUGURAL COHORT CONSISTED OF SEVEN COMPANIES - TWO INTERNATIONAL AND FIVE DOMESTIC, WHICH COMBINED CREATED 68 NEW JOBS, GENERATED OVER $1 MILLION IN REVENUE AND RAISED ALMOST $9 MILLION IN FOLLOW-ON INVESTMENT. THE SCIENCE CENTER IS CONSIDERING OPTIONS FOR HOSTING ADDITIONAL COHORTS. 924166 410930 3794623 20865592 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 91 0 1 74 1 0 0 0 0 0 0 0 0 X 26 25 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA NJ NY MD CA MA FL GA DC X UNIVERSITY CITY SCIENCE CENTER 2159666000 3711 MARKET STREET STE 800 PHILADELPHIA PA 19104 STEPHEN TANG PRESIDENT AND CEO 40.00 X X 641406 0 39677 STEPHEN K KLASKO BOARD MEMBER 0.30 X 0 0 0 CRAIG R CARNAROLI BOARD MEMBER - CHAIRMAN 1.00 X X 0 0 0 ERNEST J DIANASTASIS BOARD MEMBER 0.30 X 0 0 0 MICHAEL A DIPIANO BOARD MEMBER - VICE CHAIRM 1.00 X X 0 0 0 GLEN N GAULTON BOARD MEMBER 1.00 X 0 0 0 KEITH LEAPHART BOARD MEMBER 0.30 X 0 0 0 RUSSEL E KAUFMAN BOARD MEMBER 0.30 X 0 0 0 KENNETH L KRING BOARD MEMBER 1.00 X 0 0 0 TARA L WEINER BOARD MEMBER 0.30 X 0 0 0 DAVID R KING BOARD MEMBER 0.30 X 0 0 0 CARL KOPFINGER BOARD MEMBER 1.00 X 0 0 0 KENNETH J BLANK BOARD MEMBER - VICE CHAIRM 1.00 X X 0 0 0 CHRISTOPHER M CASHMAN BOARD MEMBER 0.30 X 0 0 0 KATHLEEN M SHAY BOARD MEMBER 0.30 X 0 0 0 STEVEN J FLUHARTY BOARD MEMBER 0.30 X 0 0 0 JANE H HOLLINGSWORTH BOARD MEMBER 0.30 X 0 0 0 OSAGIE O IMASOGIE BOARD MEMBER 0.30 X 0 0 0 PAUL TOUHEY BOARD MEMBER 0.30 X 0 0 0 J LARRY JAMESON BOARD MEMBER 0.30 X 0 0 0 THOMAS J TODOROW BOARD MEMBER 0.30 X 0 0 0 WILLIAM J MARRAZZO BOARD MEMBER 0.30 X 0 0 0 KEITH A ORRIS BOARD MEMBER 0.30 X 0 0 0 STEPHEN SPINELLI JR PHD BOARD MEMBER 0.30 X 0 0 0 KERRY BENSON BOARD MEMBER 0.30 X 0 0 0 STEPHEN ZARRILLI BOARD MEMBER 0.30 X 0 0 0 ROBERT MARCANTUONO VP FINANCE AND ADMINISTRATION, TREASURE 20.00 20.00 X 90896 90896 31166 SAUL BEHAR VP & GENERAL COUNSEL, SECR 40.00 X 318457 0 45038 MONICA CAWVEY GALLAGHER VP OF DEVELOPMENT 40.00 X 210352 0 34141 CURTIS HESS SENIOR VP REAL ESTATE 10.00 30.00 X 86714 260142 45038 JEANNE MELL VP MKTG/COMMUNICATION & COMMUNITY ENGAGEMENT 40.00 X 215335 0 35399 CHRISTOPHER LAING VP OF SCIENCE & TECHNOLOGY 40.00 X 226987 0 30094 MARY ROBERTSON SENIOR PROPERTY MANAGER 1.00 40.00 X 0 117356 16634 ADAM GREENSPAN DIRECTOR, BUSINESS INCUBATION 40.00 X 100833 0 23701 RICHARD SOUTHERLAND DIRECTOR OF CONSTRUCTION 40.00 X 0 117356 16634 MELINDA IULIANO PROPERTY MANAGER 1.00 40.00 X 0 108150 12788 1890980 693900 330310 6 0 1 0 HUNTER ROBERTS CONSTRUCTION GROUP 1717 ARCH STREET 3410 PHILADELPHIA PA 19103 CONSTRUCTION SERVICES 1639423 GCA SERVICE GROUP PO BOX 643823 PITTSBURGH PA 15264 JANITORIAL SERVICES 1320225 INTECH CONSTRUCTION 3001 MARKET STREET PHILADELPHIA PA 19104 CONSTRUCTION SERVICES 818107 ALLIED BARTON PO BOX 828854 PHILADELPHIA PA 19182 SECURITY SERVICES 597011 LIMBACH COMPANY 175 TITUS AVE SUITE 100 WARRINGTON PA 18976 HVAC CONTRACT 324099 14 38200 1074735 3492611 4605546 RENTAL INCOME FROM EXEMPT-PURPOSE 532000 18506445 18506445 EQUITY IN JOINT VENTURE PARTNERSH 531390 2794623 2794623 INCUBATOR OPERATIONS 541900 1303967 1303967 BUSINESS & COMMUNITY NETWORK 541900 68838 68838 22673873 146048 146048 71000 10500000 118679 3675628 -47679 6824372 6776693 6776693 37825 38200 65946 -28121 -28121 CAPITAL CONTRIBUTION TO PHASE 1 V 900099 1000000 1000000 1000000 35174039 23673873 0 6894620 410930 410930 2091953 858748 784170 449035 2177208 1233995 924417 18796 246216 133328 103686 9202 444550 230161 179101 35288 295939 162441 129819 3679 20000 20000 310261 88291 221970 137896 8970 128926 235967 235967 809360 375711 433649 585584 388711 196873 628064 290523 337541 7421694 7066694 355000 47429 16587 30842 2830029 2830029 4593715 3622444 971271 263076 194095 68981 37TH STREET WALKWAY 2256469 2256469 SECURITY 482034 480676 1358 OTHER TAXES 269432 108234 161198 MISCELLANEOUS 83666 79166 4500 12389 9389 3000 26653861 20865592 5272269 516000 5169805 6376135 1123495 2377932 2526035 3921434 277564 344988 117377458 54842957 64542912 62534501 4255637 4228204 1551138 1603000 443319 1256942 4564065 4226246 84453970 86869382 2769566 3896670 64164358 58249525 4454646 3706040 71388570 65852235 X 12266800 19488814 798600 1528333 13065400 21017147 84453970 86869382 X 8520178 237 -568668 X X 0 1 X 1 0 X 1958828 1924994 1233705 2332245 4605546 12055318 16885986 18153690 18757011 21368957 22673873 97839517 18844814 20078684 19990716 23701202 27279419 109894835 0 8950474 10239430 11136550 11821274 13158257 55305985 8950474 10239430 11136550 11821274 13158257 55305985 54588850 95212 142359 180442 145181 146048 709242 95212 142359 180442 145181 146048 709242 1000000 1000000 18940026 20221043 20171158 23846383 28425467 111604077 0.48910 0.53830 0.00640 0.00690 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: CAPITAL CONTRIBUTION TO PHASE 1 VENTURES - 2015 AMOUNT: $ 1,000,000. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 235967 235967 0 PART II-B, LINE 1: THE UNIVERSITY CITY SCIENCE CENTER UTILIZED THE SERVICES OF CONSULTANTS TO ASSIST IN THE PROCUREMENT OF PUBLIC SECTOR FUNDING TO SUPPORT ITS PROGRAMS AND CAPITAL PROJECTS. THE CONSULTANTS POSITIONED UCSC TO RECEIVE FUNDING, PRIMARILY THROUGH DIRECT GRANTS. 234167 5186 239353 227194 6973 234167 206908 20286 227194 188354 18554 206908 1196096 2767 1010509 188354 0 0 5475169 5475169 106537943 51337883 55200060 4140429 3505074 635355 1223917 1223917 62534501 DEPOSITS & OTHER CURRENT LIAB. 1209263 OTHER LONG TERM LIABILITIES 2496777 3706040 X 25451576 994901 994901 24456675 10717364 10717364 35174039 28658691 2004830 2004830 26653861 0 26653861 PART V, LINE 4: DEVELOPMENT FUND INCOME IS ALLOCATED FOR USE IN SCIENCE CENTER OPERATIONS. THE FUND IS AVAILABLE TO SUPPORT WORKING CAPITAL, DEVELOPMENT AND CAPITAL PURPOSES. THE ESTHER M. KLEIN ENDOWMENT FUND SUPPORTS KLEIN GALLERY (EKG) OPERATIONS THROUGH STEAM PROGRAMMING, IN AN EFFORT TO PROMOTE ART AND SCIENCE AND ART EDUCATION TO THE SURROUNDING PHILADELPHIA COMMUNITY. PART X, LINE 2: THE SCIENCE CENTER IS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, ALTHOUGH ITS CONSOLIDATED ENTITIES, THE PARK AND SCEC, ARE FOR PROFIT ENTITIES WHICH ARE SUBJECT TO INCOME TAXES. THERE WERE NO FEDERAL OR STATE INCOME TAX EXPENSES FROM THE CONSOLIDATED ENTITIES AS OF DECEMBER 31, 2015 AND 2014. ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN AND RECOGNIZE A TAX LIABILITY, IF THE CENTER HAS TAKEN AN UNCERTAIN TAX POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY A GOVERNMENT AUTHORITY. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE CENTER AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2015 AND 2014, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. THE CENTER RECOGNIZES ACCRUED INTEREST AND PENALTIES ASSOCIATED WITH UNCERTAIN TAX POSITIONS, IF ANY. THERE WAS NO INCOME TAX RELATED INTEREST OR PENALTIES RECORDED FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014. PART XI, LINE 2D - OTHER ADJUSTMENTS: REVENUE OF CONSOLIDATED SUBSIDIARIES 603,955. QED MATCH 325,000. DIRECT FUNDRAISING EXPENSES 65,946. PART XI, LINE 4B - OTHER ADJUSTMENTS: EQUITY IN NET EARNINGS (LOSS) OF JV'S 2,794,623. INVESTMENT INCOME 146,048. PROCEEDS FROM SALE ON INVESTMENT IN RE 6,824,372. REALIZED LOSS ON SALE OF INVESTMENTS -47,679. CONTRIBUTIONS TO PHASE 1 VENTURES 1,000,000. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENDITURES OF CONSOLIDATED SUBSIDIARIES 1,613,884. QED PROGRAM MATCH 325,000. DIRECT FUNDRAISING EXPENSES 65,946. NUCLEUS EVENT 76025 38200 37825 4518 21976 39452 76025 38200 37825 4518 21976 39452 65946 -28121 1 TEMPLE UNIVERSITY 1938 LIACOURA WALK PHILADELPHIA PA PHILADELPHIA PA 19122 231365971 501(C)(3) 87000 PROOF OF CONCEPT FUNDINGPROOF OF CONCEPT FUNDING LEHIGH UNIVERSITY 27 MEMORIAL DR W BETHLEHEM PA 18015 240795445 501(C)(3) 75000 PROOF OF CONCEPT FUNDINGPROOF OF CONCEPT FUNDING RUTGERS UNIVERSITY 3 RUTGERS PLAZA ASB III NEW BRUNSWICK NJ 08901 226001086 501(C)(3) 50000 PROOF OF CONCEPT FUNDING THOMAS JEFFERSON UNIVERSITY 1020 WALNUT STREET PHILADELPHIA PA 19107 231352651 501(C)(3) 100000 PROOF OF CONCEPT FUNDING BIOMEME INC 2025 WASHINGTON AVE SUITE 214 PHILADELPHIA PA 19146 PHILADELPHIA PA 19146 461268570 N/A 26394 DIGITAL HEALTH ACCELERATOR FUNDING CURBSIDE CARE LLC 201 S 18TH ST PHILADELPHIA PA 19103 19103 PHILADELPHIA PA 19103 465600530 N/A 34219 DIGITAL HEALTH ACCELERATOR FUNDING PULSE INFOFRAME US LLC 3401 MARKET ST SUITE 200 PHILADELPH A PA 19104 PHILADELPHIA PA 19104 472954219 N/A 13317 DIGITAL HEALTH ACCELERATOR FUNDING KEOSYS LLC 3401 MARKET ST SUITE 200 PHILADELPH A PA 19104 PHILADELPHIA PA 19104 371768672 N/A 25000 DIGITAL HEALTH ACCELERATOR FUNDING PART I, LINE 2: GRANT FUNDS MONITORING AT UCSC IS AN ORGANIZATION-WIDE ENDEAVOR. THE GRANT ADMINISTRATOR COORDINATES THE GRANT PROCESS FROM APPLICATION THROUGH CLOSE OUT WITH OVERSIGHT PROVIDED BY AN EXECUTIVE STAFF MEMBER. THE GRANT ADMINISTRATOR REVIEWS THE AWARD DOCUMENTATION AND APPLICABLE LAWS TO ENSURE COMPLIANCE WITH THE TERMS AND CONDITIONS OF THE AWARD. IN INSTANCES WHERE THE SCIENCE CENTER GRANTS SUB-AWARDS, THE SCIENCE CENTER RESERVES THE RIGHT TO REQUEST PROOF OF EXPENDITURE AS WELL AS SUPPORTING DOCUMENTATION TO SUBSTANTIATE EXPENSES FROM THE SUB-RECIPIENT. REPORTING REQUIREMENTS ARE COORDINATED BY THE GRANT ADMINISTRATOR IN CONJUNCTION WITH THE ASSIGNED EXECUTIVE. UPON TERMINATION OF THE AWARD, IT IS THE RESPONSIBILITY OF THE GRANT ADMINISTRATOR TO FINALIZE THE GRANT AND SUBMIT ALL REQUIRED CLOSE OUT MATERIALS. X 1 1 X X X X 0 1 0 0 0 0 0 0 0 STEPHEN TANG PRESIDENT AND CEO 430075 0 211331 0 0 0 28245 0 11432 0 681083 0 0 0 ROBERT MARCANTUONO VP FINANCE AND ADMINISTRATION, TREAS 69500 69500 21396 21396 0 0 9130 9130 6453 6453 106479 106479 0 0 SAUL BEHAR VP & GENERAL COUNSEL, SECR 232012 0 86445 0 0 0 28245 0 16793 0 363495 0 0 0 MONICA CAWVEY GALLAGHER VP OF DEVELOPMENT 159100 0 51252 0 0 0 21687 0 12454 0 244493 0 0 0 CURTIS HESS SENIOR VP REAL ESTATE 63187 189562 23527 70580 0 0 7061 21184 4198 12595 97973 293921 0 0 JEANNE MELL VP MKTG/COMMUNICATION & COMMUNITY EN 154500 0 60835 0 0 0 22285 0 13114 0 250734 0 0 0 CHRISTOPHER LAING VP OF SCIENCE & TECHNOLOGY 168337 0 58650 0 0 0 23684 0 6410 0 257081 0 0 0 PART I, LINE 1A THE SCIENCE CENTER REIMBURSES THE DUES OF THE PRESIDENT/CEO OF THE CENTER PAID TO THE UNION LEAGUE OF PHILADELPHIA. THIS ORGANIZATION INCLUDES AS MEMBERS MANY TOP LEADERS IN BUSINESS, LAW, ACADEMIA, ETC., PROVIDING FACILITIES AND RESOURCES FOR NETWORKING, MEETINGS, AND KNOWLEDGE ENHANCEMENT. MEMBERSHIP IN THE LEAGUE FOSTERS DEVELOPMENT AND ENHANCEMENT OF RELATIONSHIPS WITH RESOURCES AND INDIVIDUALS VITAL TO THE CONTINUATION AND GROWTH OF THE CENTER'S PROGRAMS AND GOALS. PART I, LINE 3 SEE SCHEDULE O NARRATIVE - FORM 990, PART VI, SECTION B, LINE 15. PART I, LINE 4B SECTION 457(F) DEFERRED COMPENSATION PLAN. ACCRUED CONTRIBUTION APPLICABLE TO OFFICERS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES LISTED ON SCHEDULE J TOTALED $171,000 FOR THE YEAR ENDED DECEMBER 31, 2015. FORM 990, PART III, LINE 4A, PROGRAM SERVICE ACCOMPLISHMENTS: THE PORT BUSINESS INCUBATOR AT THE HEART OF THE SCIENCE CENTER LIES THE PORT BUSINESS INCUBATOR, WHICH HOUSES AND FACILITATES THE GROWTH OF EARLY-STAGE TECHNOLOGY COMPANIES. SINCE THE SCIENCE CENTER'S INCEPTION IN 1963, GRADUATE ORGANIZATIONS AND CURRENT RESIDENTS OF THE INCUBATOR HAVE CREATED MORE THAN 15,000 JOBS THAT REMAIN IN THE GREATER PHILADELPHIA REGION TODAY AND CONTRIBUTE MORE THAN $9 BILLION TO THE REGIONAL ECONOMY ANNUALLY. THE PORT PROVIDES FACILITATED ACCESS TO AN INNOVATION ENVIRONMENT OF ADVISORY SERVICES, BUSINESS SERVICES, ACADEMIC RESOURCES AND EXPERTISE, AND A 30,000-SQUARE-FOOT BUSINESS INCUBATOR FACILITY. PORT COMPANIES BENEFIT FROM THE SCIENCE CENTER'S BUSINESS ADVISORY COMMUNITY OF PROVEN ENTREPRENEURIAL MENTORS, AND THE SCIENCE CENTER'S SCIENTIFIC ADVISORY COMMITTEE COMPRISING THE SENIOR RESEARCH OFFICERS AT THE REGION'S LEADING RESEARCH INSTITUTIONS. COMPANIES ARE HOUSED WITHIN A PLUG-AND-PLAY, STATE-OF-THE-ART OFFICE AND LABORATORY FACILITY ABLE TO ACCOMMODATE UP TO 150 PERSONNEL. RESIDENTS HAVE ACCESS TO EDUCATIONAL AND NETWORKING EVENTS, BROADBAND CONNECTIVITY, SHARED LABORATORY AND OFFICE EQUIPMENT, AND SHARED CONFERENCE FACILITIES. PORT MANAGERS SUPPORT THE INCUBATION PROCESS, ASSISTING RESIDENTS WITH INDIVIDUAL GROWTH NEEDS AND FACILITATING THEIR "GRADUATION" FROM THE PORT. TYPICAL RESIDENTS HAVE SEED-STAGE TO SERIES A CAPITAL AND 1-25 EMPLOYEES. THE PORT FLEXIBLY ACCOMMODATES THE CHANGING NEEDS OF EMERGING, FAST-GROWTH COMPANIES BY OFFERING FOOTPRINTS FROM VIRTUAL THROUGH SINGLE DESK, TO SINGLE-, DOUBLE- OR TRIPLE-OCCUPANCY OFFICE SPACE, AND A RANGE OF LAB SPACE TO ACCOMMODATE 1 - 16 RESEARCHERS. THIS MAKES THE PORT ONE OF THE MOST FLEXIBLE INCUBATOR FACILITIES IN THE REGION. IN FURTHERING THEIR ADVANCEMENT OF SCIENCE, THE INCUBATOR COMPANIES' WORK ENCOMPASSES INNOVATIONS IN THERAPEUTICS, MEDICAL DEVICES, DIAGNOSTICS, RESEARCH TOOLS, BIOINFORMATICS, NANOTECHNOLOGY, INFORMATION TECHNOLOGY, AND CLEAN ENERGY. BASED ON ITS INITIAL SUCCESS AS AN "INCUBATOR OF INCUBATORS," THE PORT HAS CONTINUED TO HOST A NUMBER OF PROGRAMS ON BEHALF OF ACADEMIC INSTITUTIONS, CORPORATIONS, AND GOVERNMENT ORGANIZATIONS WHICH ARE SEEKING FLEXIBLE WAYS TO INCUBATE THEIR OWN BUSINESS VENTURES. PORT STAFF CONTINUES TO SEEK OPPORTUNITIES TO PARTNER AND COLLABORATE WITH DOMESTIC AND FOREIGN ORGANIZATIONS IN BUSINESS INCUBATION. FORM 990, PART III, LINE 4B, PROGRAM SERVICE ACCOMPLISHMENTS: COMMUNITY ENGAGEMENT THE SCIENCE CENTER SUPPORTS THE COMMUNITY THROUGH A VARIETY OF PROGRAMS AND PARTNERSHIPS, INCLUDING QUORUM, THE REGIONAL AFFINITY INCUBATION NETWORK (RAIN), EDUCATION INITIATIVES SUCH AS OUR FIRSTHAND PROGRAM, AND THE UNIVERSITY CITY KEYSTONE INNOVATION ZONE (UC KIZ). STEAM (SCIENCE, TECHNOLOGY, ENGINEERING, ART AND MATH) THE SCIENCE CENTER'S STEAM PROGRAMMING ADDS ART TO THE STEM SUBJECTS OF SCIENCE, TECHNOLOGY, ENGINEERING AND MATH, TO CREATE PROJECT-BASED PROGRAMS AND WORKSHOPS THAT EMPOWER INDIVIDUALS AND CONVENE COMMUNITIES AROUND CREATIVE APPLICATIONS OF TECHNOLOGY. MANY OF OUR STEAM OFFERINGS FOCUS ON REACHING AT-RISK YOUTH, PRIMARILY IN THE NEIGHBORHOODS SURROUNDING THE SCIENCE CENTER'S WEST PHILADELPHIA CAMPUS, WHILE OTHERS ARE OPEN TO ALL MEMBERS OF THE COMMUNITY. OUR GOAL IS TO SPARK AND NURTURE A LIFELONG INTEREST IN THE STEM DISCIPLINES AND LOWER THE BARRIERS TO ENTRY FOR THOSE SEEKING A CAREER IN A STEM-RELATED FIELD. EQUAL PARTS SCIENCE, TECHNOLOGY, ENGINEERING, ART AND MATH, THE SCIENCE CENTER'S FIRSTHAND INITIATIVE PROVIDES PHILADELPHIA'S CURIOUS MINDS ACCESS TO THE KNOWLEDGE AND RESOURCES OF THE SCIENCE CENTER. BY FUELING DISCOVERY AND EXPLORATION WITH INTERACTIVE PROGRAMMING, WE ARE OPENING THE DOORS FOR THE MINDS OF TOMORROW. USING A COMBINATION OF HIGH- AND LOW-TECH TOOLS PAIRED WITH HANDS-ON PROJECT-BASED LEARNING OPPORTUNITIES, FIRSTHAND OFFERS YEAR-ROUND PROGRAMMING TO YOUTH FREE OF CHARGE. MAKING THE FIRSTHAND EXPERIENCE UNIQUE IS THE LOCATION IN A PROFESSIONAL SCIENCE/BUSINESS ENVIRONMENT, DEMONSTRATIONS IN THE LABS OF COMPANIES WORKING ON THE SCIENCE CENTER CAMPUS, AND MENTORSHIP OPPORTUNITIES WITH SCIENTISTS, DESIGNERS AND ENTREPRENEURS WHO MAKE UP THE SCIENCE CENTER COMMUNITY. DURING 2015, THE SECOND FULL YEAR OF OPERATION, FIRSTHAND WORKED WITH 581 LOCAL YOUTHS AND PROVIDED MORE THAN 3,300 HOURS OF STUDENT ENGAGEMENT THROUGH 22 SEPARATE PROGRAMS. FIRSTHAND PROGRAMS INCLUDE: (1) DNA SELFIE ASKS GROUPS OF 10 TO 15 MIDDLE SCHOOL GIRLS TO LOOK AT AND PRESENT THEMSELVES IN A NEW CREATIVE LIGHT. THEY TRANSLATE REAL-LIFE LAB EXPERIENCES BY EXTRACTING THEIR OWN DNA AND STUDYING THEIR OWN CELLS TO TRANSFORM THEM INTO INNOVATIVE SELF-PORTRAITS USING PHOTO-MICROSCOPY, VINYL CUTTERS, LASER CUTTERS AND THEIR OWN INGENUITY. THE GIRLS THEN DESIGN A GROUP EXHIBIT OF THEIR GENETIC "SELFIES" TO EXHIBIT TO THE PUBLIC. (2) POLYMER PLAY TEACHES YOUTH ABOUT THE INS AND OUTS OF MATERIAL SCIENCE THROUGH MAKING AND BUILDING WITH POLYMERS. REAL-LIFE LAB EXPERIENCES INSPIRE EXPERIMENTS AND CONSTRUCTION PROJECTS. ACTIVITIES INCLUDE MAKING BIO-PLASTIC, RECYCLING PLASTICS INTO NEW MATERIALS, AND EXPERIMENTING WITH TOOLS LIKE VACUUM SEALS, LASER CUTTERS AND POWER TOOLS. A FINAL TEAM PROJECT IS DESIGNED AND BUILT BY THE GROUP, AND THEN EXHIBITED TO THE PUBLIC. (3) AMPITUP EXPLORES THE INNER WORKINGS OF THE BATTERIES AND CIRCUITS THAT POWER OUR DAILY ACTIVITIES. STUDENTS STEP INTO THE WORLD OF ELECTROCHEMISTRY AND TINKER WITH DESIGNING DIFFERENT TYPES OF BATTERIES AND EXPERIMENTING WITH ELECTRICAL CIRCUITS. PARTICIPANTS LEARN TO USE SOLDERING IRONS, MULTI-METERS, LASER CUTTERS AND HAND TOOLS. AT THE END OF THE PROGRAM THE FINAL PROJECTS ARE PRESENTED TO THE PUBLIC AT THE SCIENCE CENTER. (4) STEAM TRAINING FOR TEACHERS IS AN OPPORTUNITY FOR EDUCATORS LOOKING TO BRING THE TENETS OF STEAM EDUCATION INTO THEIR CLASSROOMS. THE GOAL IS FOR EDUCATORS TO LEARN THE PRACTICE OF DESIGN-BASED STEAM EDUCATION BY EXPERIENCING IT THEMSELVES. THE TAKEAWAYS ARE A RESOURCE KIT FOR INCLUDING STEAM PEDAGOGY IN FUTURE LESSON PLANS. (5) THE SCIENCE CENTER EXPERIENCE IS A WINDOW INTO THE WORLD OF REAL-LIFE SCIENCE RESEARCH LABS. THE SCIENCE CENTER'S LABS AND OFFICE SPACES ARE TEEMING WITH SCIENTISTS AND ENTREPRENEURS WHO ARE EAGER TO SHARE FIRSTHAND EXPERIENCES OF THEIR WORK AND CAREER PATHS WITH STUDENTS AND TEACHERS. PARTICIPANTS TOUR THE SCIENCE CENTER CAMPUS, VISIT THE LABS AND INTERACT WITH THE RESIDENT SCIENTISTS TO LEARN WHAT IT'S REALLY LIKE TO WORK IN THE STEM DISCIPLINES. THE SCIENCE CENTER'S STEAM PERSONNEL ALSO MANAGE AND OPERATE AN ART GALLERY SPACE ON THE SCIENCE CENTER CAMPUS THAT IS OPEN TO THE PUBLIC, KNOWN AS ESTHER KLEIN GALLERY (EKG). EXHIBITS HELD AT EKG EXPLORE INTERSECTIONS BETWEEN ART, DESIGN, SCIENCE AND TECHNOLOGY. THE PRIMARY AIM OF EKG IS TO EXAMINE NEW ART AND CONTEMPORARY ARTS PRACTICES THAT ARE INFLUENCED BY TECHNOLOGY AND THE SCIENCES, AND TO GENERATE PUBLIC DISCOURSE THROUGH THE EXHIBITION OF CREATIVE WORKS THAT COMMENT ON LIFE AND OUR ENVIRONMENT IN A DIGITAL AGE. EKG WILL CELEBRATE ITS 40TH ANNIVERSARY IN 2016. QUORUM QUORUM IS A SCIENCE CENTER INITIATIVE THAT UNITES THE REGION'S ENTREPRENEURSHIP AND INNOVATION COMMUNITIES THROUGH A CENTRAL, NEUTRAL GATHERING SPACE AT 3711 MARKET STREET AND RELATED PROGRAMS THROUGHOUT THE REGION. AN EFFORT TO SUPPORT LONG-TERM COLLABORATIVE REGIONAL ECONOMIC DEVELOPMENT, QUORUM STRENGTHENS THE REGION'S CULTURE OF TECHNOLOGY-BASED ECONOMIC DEVELOPMENT BY OFFERING PROGRAMS AND FACILITATING CONNECTIONS BETWEEN ENTREPRENEURS, INNOVATORS, FUNDERS AND RESOURCE ORGANIZATIONS, WITH THE ULTIMATE GOAL OF INNOVATION, COMPANY FORMATION AND JOB CREATION. BETWEEN JUNE 2011 WHEN QUORUM OPENED ITS DOORS AND DECEMBER 31, 2015, 41,000 PEOPLE PARTICIPATED IN 780 EVENTS AND PROGRAMS IN QUORUM. IN 2015, MORE THAN 9,500 PEOPLE PARTICIPATED IN 170 QUORUM PROGRAMS AND EVENTS. REGIONAL AFFINITY INCUBATION NETWORK (RAIN) RAIN IS A REGIONAL NETWORK OF 75-PLUS RESEARCH PARKS, BUSINESS INCUBATORS, CO-WORKING SPACES, ACCELERATORS AND SUPPORT ORGANIZATIONS IN PENNSYLVANIA, NEW JERSEY AND DELAWARE THAT SHARE INFORMATION, CAPABILITIES AND OPPORTUNITIES - AS WELL AS BUILD STRENGTH ACROSS THE REGION. LAUNCHED IN 2009, RAIN HAS EXPANDED TO INCLUDE THE DIVERSE GROUP OF CO-WORKING SPACES, ACCELERATORS AND OTHER MODELS THAT SUPPORT ENTREPRENEURSHIP IN THE REGION. MORE THAN 150 PEOPLE ATTENDED THE 7TH ANNUAL RAIN CONFERENCE IN JULY 2015. TITLED ENTREPRENEURSHIP & INDUSTRY: BRIDGING THE GAPS & CREATING OPPORTUNITY, THE CONFERENCE EXPLORED THE RELATIONSHIPS BETWEEN INCUBATORS, ACCELERATORS AND COWORKING SPACES WITH ESTABLISHED BUSINESSES. UNIVERSITY CITY KEYSTONE INNOVATION ZONE THE SCIENCE CENTER IS ONE OF THE FOUNDING PARTNERS AND THE FISCAL AGENT OF THE UNIVERSITY CITY KEYSTONE INNOVATION ZONE (UC KIZ), A PARTNERSHIP DESIGNED TO BUILD KNOWLEDGE-BASED ECONOMIES AND CULTIVATE ENTREPRENEURSHIP IN PENNSYLVANIA. HOME TO NUMEROUS LIFE SCIENCES AND IT STARTUPS, SEVERAL MAJOR UNIVERSITIES, NON-PROFIT RESEARCH INSTITUTES, AND RESEARCH AND TEACHING HOSPITALS, THE UC KIZ COMMUNITY HAS THE INFRASTRUCTURE AND RESOURCES THAT GROWING LIFE SCIENCES AND IT COMPANIES NEED. UC KIZ PARTNERS INCLUDE BIOADVANCE, DREXEL UNIVERSITY, THOMAS JEFFERSON UNIVERSITY, UNIVERSITY CITY SCIENCE CENTER, THE UNIVERSITY OF PENNSYLVANIA, UNIVERSITY OF THE SCIENCES AND THE WISTAR INSTITUTE. TWENTY-ONE UC KIZ COMPANIES RECEIVED A COLLECTIVE $1.8 MILLION IN TAX CREDITS AWARDED BY THE PENNSYLVANIA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT IN 2015 AS PART OF THE KEYSTONE INNOVATION ZONE (KIZ) TAX CREDIT PROGRAM. FORM 990, PART III, LINE 4C, PROGRAM SERVICE ACCOMPLISHMENTS: REAL ESTATE THE SCIENCE CENTER CAMPUS ENCOMPASSES 17 ACRES, 15 BUILDINGS, AND 2.5 MILLION SQUARE FEET WITHIN A FOUR-BLOCK AREA THAT IS HOME TO 100 COMPANIES EMPLOYING 8,000 PEOPLE. CURRENTLY, THE SCIENCE CENTER OWNS AND MANAGES APPROXIMATELY 1.5 MILLION SQUARE FEET OF SPACE IN SEVEN BUILDINGS, INCLUDING THREE INCUBATORS FOR FLEDGLING BUSINESSES. IN KEEPING WITH THE AGILITY OF ENTREPRENEURS, SHORT-TERM LEASES ARE AVAILABLE, WITH OPPORTUNITIES FOR GROWTH. IN 2014, WE OPENED OUR NEWEST OFFICE AND LAB BUILDING AT 3737 MARKET STREET, A 332,000-SQUARE-FOOT MIXED USE PROPERTY. THE ANCHOR TENANT IS PENN PRESBYTERIAN MEDICAL CENTER'S PENN CENTER FOR SPECIALTY CARE. FORM 990, PART VI, SECTION A, LINE 6 THE OWNERSHIP OF SHARES OF THE CORPORATION IS RESTRICTED TO CORPORATIONS QUALIFIED FOR EXEMPTION FROM FEDERAL INCOME TAXES UNDER SECTION 501(C) (3) OF THE INTERNAL REVENUE CODE. FORM 990, PART VI, SECTION A, LINE 7A ANNUAL STOCKHOLDER MEETINGS: AFTER EACH ANNUAL ELECTION OF DIRECTORS, THE BOARD OF DIRECTORS MEETS FOR THE PURPOSE OF ORGANIZATION, ELECTION OF A CHAIRMAN OF THE BOARD AND OTHER OFFICERS, AND THE TRANSACTION OF OTHER BUSINESS AT THE OFFICE OF THE CORPORATION. FORM 990, PART VI, SECTION A, LINE 7B REGULAR AND ANNUAL MEETINGS ARE HELD FOR THE TRANSACTION OF BUSINESS. SPECIAL MEETINGS MAY ALSO BE HELD AT THE DIRECTION OF THREE OR MORE SHAREHOLDERS. FORM 990, PART VI, SECTION B, LINE 11 THE COMPLETED 990 IS PRESENTED FOR REVIEW AND APPROVAL BY THE AUDIT COMMITTEE, AT WHICH TIME IT WILL BE MADE AVAILABLE TO THE ENTIRE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C EACH BOARD MEMBER AND EXEMPT EMPLOYEE IS REQUIRED TO ANNUALLY SIGN A CONFLICT OF INTEREST DISCLOSURE FORM, INDICATING THAT HE/SHE UNDERSTANDS THE POLICY AND WILL ALERT THE ORGANIZATION SHOULD A CONFLICT OCCUR. THIS PROCESS IS OVERSEEN BY THE SCIENCE CENTER'S GENERAL COUNSEL. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD HIRED SULLIVAN COTTER ON DECEMBER 24, 2013 TO REVIEW CEO AND EXECUTIVE COMPENSATION AND PROVIDE BENCHMARK INFORMATION ON SALARY AND INCENTIVE COMPENSATION. AN ARRAY OF 501 C3 AND FOR-PROFIT BENCHMARKS WERE INCLUDED IN THE STUDY IN ORDER TO COMPARE ENTITIES AND THEIR COMPENSATION STRUCTURES THAT REPRESENTED BUSINESS AND SERVICE OPERATIONS OF A COMPARABLE NATURE. THE FINDINGS FROM SULLIVAN COTTER STUDY WERE AND HAVE BEEN INCORPORATED INTO ANNUAL REVIEW AND COMPENSATION PLANNING FOR THE CEO AND HIS TEAM. THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS ANNUALLY REVIEWS MANAGEMENT COMPENSATION AND APPROVES ALL CHANGES. FORM 990, PART VI, SECTION C, LINE 19 A PERSON REQUESTING A COPY OF THE GOVERNING DOCUMENTS ETC. PLACES HIS / HER REQUEST WITH THE SECRETARY OF THE UNIVERSITY CITY SCIENCE CENTER. UPON RECEIPT OF THE REQUEST, THE REQUESTED INFORMATION IS MADE AVAILABLE TO THE INTERESTED PARTY. FORM 990, PART XI, LINE 9: NET RPI ACTIVITY -691,476. UNREALIZED GAIN ON INTEREST RATE SWAP 441,262. NET SCEC ACTIVITY -318,454. FORM 990, PART XII, LINE 2C: THERE HAS BEEN NO CHANGE DURING THE CURRENT PERIOD BY THE ORGANIZATION IN THE AUDIT OVERSIGHT OR INDEPENDENT AUDITOR SELECTION PROCESS. 3701 UNIVERSITY CITY SCIENCE CENTER ASSOCIATES LLC 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 233040121 COMMERICAL REAL ESTATE PROPERTY OWNERSHIP AND RENTAL PA 43185 290031 UNIVERSITY CITY SCIENCE CENTER 3701 UNIVERSITY CITY SCIENCE CENTER ASSOCIATES LP 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 233040122 COMMERICAL REAL ESTATE PROPERTY OWNERSHIP AND RENTAL PA 4275271 28713081 UNIVERSITY CITY SCIENCE CENTER WHALEY PARTNERS LP 3711 MARKET STREET 8TH FLOOR PHILADELPHIA PA 19104 208824011 INVESTMENT PA UNIVERSITY CITY SCIENCE CENTER RELATED 174392 0 0 0.80070 PORT OF TECHNOLOGY INC 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 233054794 INCUBATOR STARTUP SUPPORT PA UNIVERSITY CITY SCIENCE CENTER C 1.00000 0 RESEARCH PARK INC 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 232671100 SERVICES - REAL ESTATE MGMT PA UNIVERSITY CITY SCIENCE CENTER C -150749 28038 1.00000 0 SCEC VENTURES INC 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 474043064 PROPERTY DEVELOPMENT PA UNIVERSITY CITY SCIENCE CENTER C -318454 177789 1.00000 0 0 0 0 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 RESEARCH PARK INC L -483149 RESEARCH PARK INC - NET INTERCOMPANY CHANGE D 100935 RESEARCH PARK INC J 301396 SCEC VENTURES INC - NET INTERCOMPANY CHANGE D -318516