2013-06-11T07:47:53-05:00 2012-12-31 131639826 EISNERAMPER LLP 101 WEST AVENUE PO BOX 458 JENKINTOWN PA 190460458 990 2012-01-01 231645908 UNIVERSITY CITY SCIENCE CENTER UNIV 2159666000 3711 MARKET STREET 8TH FLOOR PHILADELPHIA PA 19104 STEPHEN S TANG 2159666000 2013-05-30 1 STEVEN GLUECK P00856557 2158818800 2012 2016-02-25 16:41:14Z STEPHEN S TANG 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 25846496 0 X WWW.SCIENCECENTER.ORG X 1963 PA TO ACCELERATE TECHNOLOGY COMMERCIALIZATION IN THE GREATER PHILADELPHIA REGION. 26 25 50 0 0 0 1958828 1924994 16885986 18153690 83984 1991685 0 0 18928798 22070369 436306 304388 0 0 3897364 4147782 0 0 569300 17321731 16769942 21655401 21222112 -2726603 848257 93190692 87172164 78871794 72454411 14318898 14717753 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 1245793 1576914 SEE DETAIL SCHEDULE O NARRATIVE 727163 60489 SEE DETAIL SCHEDULE O NARRATIVE 14147681 16480087 SEE DETAIL SCHEDULE O NARRATIVE 733982 304388 36200 SCIENCE AND TECHNOLOGY-IN 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 ('PROVEN AS DEMONSTRATED') - PROVIDES FUNDING AND BUSINESS DEVELOPMENT SUPPORT FOR ACADEMIC RESEARCHERS THROUGHOUT GREATER PHILADELPHIA 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 TO BRIDGE 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-BASE RETENTION AND EXPANSION. THE PROGRAM'S KEY GOAL IS TO MARSHAL EXISTING REGIONAL RESOURCES TO SUBSTANTIALLY REDUCE INVESTMENT RISK IN EARLY-STAGE LIFE SCIENCE R&D PROJECTS, PREPARING THEM FOR ESTABLISHED LIFE SCIENCE 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 22 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. IN 2012, FOR THE FIRST TIME, THE QED TEAM EXPLORED WHETHER THE QED PROCESS COULD BE USED TO MINE THE REGION'S EXPERTISE IN SCIENCE AND TECHNOLOGY RESEARCH FOR OPPORTUNITIES IN SPECIFIC SECTORS. BY FOCUSING THE SCOPE OF THE SOLICITATION, QED COULD SERVE AS A TOOL FOR EFFECTIVELY AND EFFICIENTLY IDENTIFYING, SCREENING, AND DEVELOPING TECHNOLOGIES IN A PARTICULAR FOCUS AREA WITH HIGH COMMERCIAL POTENTIAL. IN 2012, THIS CAPABILITY WAS PILOTED USING 'DIGITAL HEALTH' AS A SPECIAL EMPHASIS TOPIC, WHICH WE SELECTED BASED ON FEEDBACK FROM PARTICIPATING ACADEMIC RESEARCH INSTITUTIONS. IT IS THE INTENTION OF THE QED TEAM TO CONTINUE TO REDIRECT THE PROGRAM'S CAPABILITIES TOWARD FOCUSED PIPELINE DEVELOPMENT, AND TO IDENTIFY OTHER PARTICULAR RESEARCH TOPICS FOR LATER ROUNDS BASED ON MARKET NEED AND INSTITUTION FEEDBACK. 733982 304388 36200 16854619 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 72 0 1 50 1 0 0 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 1 1 PA X UNIVERSITY CITY SCIENCE CENTER 2159666000 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 STEPHEN TANG 40.00 X X 530818 0 59075 MAXINE BALLEN 1.00 X 0 0 0 RICHARD A BENDIS 0.30 X 0 0 0 CRAIG R CARNAROLI 1.00 X X 0 0 0 ERNEST J DIANASTASIS 0.30 X 0 0 0 MICHAEL A DIPIANO 1.00 X 0 0 0 GLEN N GAULTON 1.00 X 0 0 0 PHILIP P GERBINO 0.30 X 0 0 0 RICHARD P JAFFE 0.30 X X 0 0 0 PHILIP R JOHNSON 0.30 X 0 0 0 RUSSEL E KAUFMAN 0.30 X 0 0 0 KENNETH L KRING 1.00 X 0 0 0 TARA L WEINER 0.30 X 0 0 0 DAVID R KING 0.30 X 0 0 0 CARL KOPFINGER 1.00 X 0 0 0 KENNETH J BLANK 1.00 X X 0 0 0 CHRISTOPHER M CASHMAN 0.30 X 0 0 0 KATHERINE D CROTHALL 0.30 X 0 0 0 JAMES A DATIN 1.00 X X 0 0 0 STEVEN J FLUHARTY 0.30 X 0 0 0 JANE H HOLLINGSWORTH 0.30 X 0 0 0 DAVID P HOLVECK 0.30 X 0 0 0 OSAGIE O IMASOGIE 0.30 X 0 0 0 PAUL TOUHEY 0.30 X 0 0 0 DEBORAH L CRAWFORD 0.30 X 0 0 0 J LARRY JAMESON 0.30 X 0 0 0 THOMAS GREENWOOD 20.00 20.00 X 92559 92559 42932 SAUL BEHAR 40.00 X 337964 0 54712 CURTIS HESS 4.00 36.00 X 30680 276119 53498 JEANNE MELL 40.00 X 169600 0 37850 CHRISTOPHER LAING 40.00 X 168833 0 31723 ROBERT MARCANTUONO 20.00 20.00 X 55875 55875 18873 MARY ROBERTSON 0.00 40.00 X 0 131704 27618 1386329 556257 326281 4 0 1 0 INTECH CONSTRUCTION 3001 MARKET STREET PHILADELPHIA PA 19104 CONSTRUCTION 1161068 ABM MID-ATLANTIC INC PO BOX 6626 PHILADLEPHIA PA 19178 JANITORIAL SERVICES 334212 ALLIED BARTON PO BOX 828854 PHILADELPHIA PA 19182 SECURITY SERVICES 315091 COZEN O'CONNOR PO BOX 7247 PHILADELPHIA PA 19170 LEGAL SERVICES 284782 GCA SERVICE GROUP PO BOX 643823 PITTSBURGH PA 15264 JANITORIAL SERVICES 179333 10 1346356 578638 1924994 RENTAL INCOME FROM EXE 532000 16657934 16657934 INCUBATOR OPERATIONS 541900 1576914 1576914 BUSINESS & COMMUNITY NETWORK 541900 60489 60489 SCIENCE & TECHNOLOGY 541900 36200 36200 EQUITY IN NET EARNINGS (LOSS) OF 531390 -177847 -177847 18153690 142359 142359 3655512 1969941 3687546 88581 -32034 1881360 1849326 1849326 22070369 18153690 0 1991685 304388 304388 1480630 556955 609864 313811 2053155 1574233 475589 3333 192383 132943 52043 7397 178375 144669 33706 243239 152859 73851 16529 35089 35089 78878 26093 52785 115050 5600 109450 228230 228230 296751 137602 159149 202313 79215 123098 360603 125530 235073 6455212 5674469 780743 54071 6473 47598 3558827 3558827 4455700 3579218 876482 241634 179121 62513 SECURITY 460429 459444 985 OTHER TAXES 146267 54000 92267 MISCELLANEOUS 69638 56641 12997 BAD DEBT 11250 11250 21222112 16854619 3798193 569300 2404805 3787815 1139849 950274 1742750 4730213 155631 274060 110221894 42730406 77738533 67491488 4550100 3936150 1494742 1538716 177847 153605 3786435 4309843 93190692 87172164 2597249 2486770 8167 0 72277629 65491959 3988749 4475682 78871794 72454411 X 14261835 14389753 57063 328000 14318898 14717753 93190692 87172164 X 848257 -236199 -213203 X X 0 1 X 1 1 1 X 3844260 2775045 3031069 1958828 1924994 13534196 19095929 17905277 16255911 16885986 18153690 88296793 22940189 20680322 19286980 18844814 20078684 101830989 0 3406049 6812039 8338583 8950474 10239430 37746575 3406049 6812039 8338583 8950474 10239430 37746575 64084414 500697 228171 140554 95212 142359 1106993 500697 228171 140554 95212 142359 1106993 23440886 20908493 19427534 18940026 20221043 102937982 0.62260 0.66150 0.01080 0.01480 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 228230 228230 0 EXPLANATION OF LOBBYING ACTIVITIES: 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. 188354 18554 206908 1196096 2767 1010509 188354 924731 92009 -179356 1196096 1474425 107067 656761 924731 1773141 -298716 1474425 0 0 4770252 4770252 101776344 40122503 61653841 2995554 2256418 739136 679744 351485 328259 67491488 DEPOSITS & OTHER CURRENT LIAB. 1594879 OTHER LONG TERM LIABILITIES 2880803 4475682 X 24313662 -236199 2390911 2154712 22158950 -88581 -88581 22070369 23832189 2521496 2521496 21310693 -88581 -88581 21222112 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: 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 BREADBOARD, IN AN EFFORT TO PROMOTE ART AND SCIENCE AND ART EDUCATION TO THE SURROUNDING PHILADELPHIA COMMUNITY. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTERPRISE'S FINANCIAL STATEMENTS. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE SCIENCE CENTER AND ITS CONSOLIDATED SUBSIDIARIES, AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2012 AND 2011, 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, 2012 AND 2011. PART XI, LINE 2D - OTHER ADJUSTMENTS: REVENUE OF CONSOLIDATED SUBSIDIARIES 1,594,478. QED PROGRAM MATCH 333,437. UNREALIZED GAIN ON INTEREST RATE SWAP 462,996. PART XI, LINE 4B - OTHER ADJUSTMENTS: ACQUISITION BASIS IN LIMITED PARTNERSHIP -88,581. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENDITURES OF CONSOLIDATED SUBSIDIARIES 2,188,059. QED PROGRAM MATCH 333,437. PART XII, LINE 4B - OTHER ADJUSTMENTS: ACQUISITION BASIS IN LIMITED PARTNERSHIP -88,581. 1 TEMPLE UNIVERSITY 1938 LIACOURAS WALK PHILADELPHIA PA 19122 231365971 501(C)(3) 8315 PROOF OF CONCEPT FUNDING UNIVERSITY OF PENNSYLVANIA 3451 WALNUT ST PHILADELPHIA PA 19104 231352685 501(C)(3) 33086 PROOF OF CONCEPT FUNDING CHILDREN'S HOSPITAL OF PHILADELPHIA 3550 MARKET ST PHILADELPHIA PA 19104 231352166 501(C)(3) 16912 PROOF OF CONCEPT FUNDING THOMAS JEFFERSON UNIVERSITY 1020 LOCUST STREET SUITE M-34 PHILADELPHIA PA 19107 231352651 501(C)(3) 54390 PROOF OF CONCEPT FUNDING PHILADELPHIA UNIVERSITY 4201 HENRY AVENUE PHILADELPHIA PA 19144 231352294 501(C)(3) 100000 PROOF OF CONCEPT FUNDING LEHIGH UNIVERSITY 27 MEMORIAL DRIVE WEST BETHLEHEM PA 18015 240795445 91685 PROOF OF CONCEPT FUNDING 6 6 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, 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 370818 0 160000 0 0 0 48689 0 10386 0 589893 0 0 0 THOMAS GREENWOOD 77559 77559 15000 15000 0 0 13839 13839 7627 7627 114025 114025 0 0 SAUL BEHAR 277964 0 60000 0 0 0 39257 0 15455 0 392676 0 0 0 CURTIS HESS 23680 213119 7000 63000 0 0 3801 34210 1549 13938 36030 324267 0 0 JEANNE MELL 134600 0 35000 0 0 0 25753 0 12097 0 207450 0 0 0 CHRISTOPHER LAING 138833 0 30000 0 0 0 25890 0 5833 0 200556 0 0 0 MARY ROBERTSON 0 121704 0 10000 0 0 0 12501 0 15117 0 159322 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 $74,118 FOR THE YEAR ENDED DECEMBER 31, 2012. PROGRAM SERVICE STATEMENT FORM 990, PART III, LINE 4A, PROGRAM SERVICE ACCOMPLISHMENTS: 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. 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 TECHNOLOGY. ADDITIONALLY, DURING THE LAST YEAR, THE SCIENCE CENTER HAS BEEN EXPLORING THE UTILITY OF THE PORT AS AN 'INCUBATOR'OF INCUBATORS, HOSTING 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 WILL CONTINUE TO SEEK OPPORTUNITIES TO PARTNER AND COLLABORATE WITH DOMESTIC AND FOREIGN ORGANIZATIONS IN BUSINESS INCUBATION. 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 PRESTIGIOUS 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 INCUBATORS FLEXIBLY ACCOMMODATE THE CHANGING NEEDS OF EMERGING, FAST-GROWTH COMPANIES AND ARE ABLE TO OFFER 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. PROGRAM SERVICE STATEMENT FORM 990, PART III, LINE 4B, PROGRAM SERVICE ACCOMPLISHMENTS: BUSINESS AND COMMUNITY NETWORKS- THE SCIENCE CENTER SUPPORTS THE COMMUNITY THROUGH A VARIETY OF PROGRAMS AND PARTNERSHIPS, INCLUDING BREADBOARD/EKG, QUORUM, THE REGIONAL AFFINITY INCUBATION NETWORK (RAIN), STEM EDUCATION INITIATIVES, AND THE UNIVERSITY CITY KEYSTONE INNOVATION ZONE (UCKIZ). LAUNCHED IN 2010, BREADBOARD IS A HYBRID PROGRAM AT THE UNIVERSITY CITY SCIENCE CENTER THAT EXPLORES INTERSECTIONS BETWEEN CONTEMPORARY ART, TECHNOLOGY AND SCIENCE. BREADBOARD PROGRAMS FALL INTO THREE DISTINCT CATEGORIES: EKG EXHIBITION SERIES, BREADBOARD ARTIST RESIDENCY PROGRAM AND OUR YOUTH & COMMUNITY OUTREACH PROGRAM. THROUGH A UNIQUE PARTNERSHIP WITH NEXTFAB STUDIO, BREADBOARD ENGAGES INDIVIDUALS AND COMMUNITIES AT ALL LEVELS OF INTEREST AND EXPERIENCE. NEXTFAB STUDIO IS A RAPID PROTOTYPING WORKSPACE AND TEACHING FACILITY FEATURING 21ST CENTURY TOOLS AND TECHNOLOGY THAT INCLUDE 3-D PRINTERS, COMPUTER OPERATED EQUIPMENT SUCH AS LASER CUTTERS AND MILLING MACHINES, DIGITAL EMBROIDERS AND LARGE-SCALE COLOR AND VINYL PRINTERS, COMPUTER GRAPHICS, AND VIDEO AND SOUND EDITING LABS. THE OBJECTIVE OF BREADBOARD PROGRAMMING IS TO USE ART AND CREATIVITY AS A PLATFORM FOR INTRODUCING NEW CREATIVE TOOLS AND TECHNOLOGY TO THE GENERAL PUBLIC THROUGH HANDS-ON COLLABORATIVE WORKSHOP EVENTS AND ACTIVITIES. BREADBOARD ALSO MANAGES A PUBLIC ART SPACE KNOWN AS EKG (ESTHER KLEIN GALLERY). EKG EXHIBITS AND PROJECTS 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 TO GENERATE PUBLIC DISCOURSE THROUGH THE EXHIBITION OF CREATIVE WORKS THAT COMMENT ON LIFE AND OUR ENVIRONMENT IN A DIGITAL AGE. QUORUM, AN EFFORT TO SUPPORT LONG-TERM COLLABORATIVE REGIONAL ECONOMIC DEVELOPMENT, 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. 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. IN 2012, THE SCIENCE CENTER EXPANDED THE REACH OF QUORUM AS IT PILOTED SATELLITE QUORUM PROGRAMMING AT THE PHILADELPHIA NAVY YARD. SATELLITE QUORUM SUPPORTS THE ENERGY EFFICIENT BUILDINGS HUB (EEB HUB)'S GOAL OF REDUCING ENERGY CONSUMPTION IN COMMERCIAL BUILDINGS BY OFFERING PROGRAMMING TARGETED TO ENTREPRENEURS IN THE CLEAN TECH/ADVANCED ENERGY RETROFIT SECTORS. RAIN: THE SCIENCE CENTER LAUNCHED A NETWORK OF BUSINESS PARKS IN THE REGION IN 2009. THE REGIONAL AFFINITY INCUBATION NETWORK (RAIN) BRINGS TOGETHER RESEARCH PARKS, INCUBATORS, ACCELERATORS, CO-WORKING SPACES AND SUPPORTING ORGANIZATIONS INVOLVED IN TECHNOLOGY-FOCUSED ECONOMIC DEVELOPMENT INITIATIVES. RAIN HAS GROWN FROM ITS BEGINNINGS IN 2009. MORE THAN 125 PEOPLE ATTENDED THE 4TH ANNUAL RAIN CONFERENCE IN JULY 2012 THAT EXPLORED DIFFERENT BUSINESS MODELS THAT SUPPORT ENTREPRENEURSHIP. THE GROWTH IN INTEREST AND PARTICIPATION CAN BE DIRECTLY ATTRIBUTED TO THE EXPANSION OF THE RAIN COMMUNITY TO INCLUDE THE DIVERSE GROUP OF INCUBATORS, ACCELERATORS AND CO-WORKING SPACES POPPING UP ACROSS THE GREATER PHILADELPHIA REGION. STEM EDUCATION: IN ADDITION TO ITS BREADBOARD PROGRAM, THE SCIENCE CENTER WORKS CLOSELY WITH LOCAL NONPROFITS, SUCH AS PHILADELPHIA ACADEMIES INC., TO IMPROVE SCIENCE EDUCATION IN CITY SCHOOLS AND CLASSROOMS. IN THE SUMMER OF 2012, THE SCIENCE CENTER AND ITS RESIDENT COMPANIES HOSTED THREE SUMMER INTERNS FROM PHILADELPHIA ACADEMIES' BIOTECHNOLOGY ACADEMY. 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. THE UC KIZ HAS A CONCENTRATION OF RESOURCES FOR SUPPORTING AND GROWING LIFE SCIENCES COMPANIES. IN 2012 WE EXPANDED THE TARGETED INDUSTRY SECTORS OF THE UCKIZ TO ALSO INCLUDE INFORMATION TECHNOLOGY. 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. PROGRAM SERVICE STATEMENT FORM 990, PART III, LINE 4C, PROGRAM SERVICE ACCOMPLISHMENTS: OWNED REAL ESTATE- THE SCIENCE CENTER CAMPUS ENCOMPASSES 17 ACRES, 15 BUILDINGS, AND 2 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 ONE MILLION SQUARE FEET OF SPACE IN SEVEN BUILDINGS, INCLUDING TWO INCUBATORS FOR FLEDGLING BUSINESSES. IN KEEPING WITH THE AGILITY OF ENTREPRENEURS, SHORT-TERM LEASES ARE AVAILABLE, WITH OPPORTUNITIES FOR GROWTH. THE SCIENCE CENTER BROKE GROUND ON ITS 16TH BUILDING IN SEPTEMBER 2012. 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 MERCER HUMAN RESOURCE CONSULTING IN 2010 TO REVIEW CEO AND EXECUTIVE COMPENSATION AND PROVIDE BENCHMARK INFORMATION ON SALARY AND INCENTIVE COMPENSATION. AN ARRAY OF 501 (C)(3) 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 MERCER'S 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, WHICH IS DOCUMENTED IN THE BOARD MINUTES. 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: LOSS ON TAXABLE SUBSIDIARIES -593,581. UNREALIZED GAIN ON INTEREST RATE SWAP 462,996. DISTRIBUTIONS TO NONCONTROLLING INTEREST PARTNERS -82,618. FORM 990, PART XII, LINE 2C THE SCIENCE CENTER BOARD HAS DESIGNATED AN AUDIT COMMITTEE WITH GENERAL OVERSIGHT RESPONSIBILITIES FOR THE INDEPENDENT AUDIT OF THE ORGANIZATION. THERE HAS BEEN NO SIGNIFICANT CHANGE IN THE PROCESS DURING THE 2012 YEAR. 3701 UNIVERSITY CITY SCIENCE CENTER ASSOCIATES LP 3711 MARKET STREET PHILADELPHIA PA 19104 233040122 COMMERICAL REAL ESTATE PROPERTY OWNERSHIP AND RENTAL PA 736308 28439623 UNIVERSITY CITY SCIENCE CENTER 3701 UNIVERSITY CITY SCIENCE CENTER ASSOCIATES LLC 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 233040121 COMMERICAL REAL ESTATE PROPERTY OWNERSHIP AND RENTAL PA 287269 7437 UNIVERSITY CITY SCIENCE CENTER UNIVERSITY PARK ASSOCIATES I LLC 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 233011497 OFFICE BUILDING PA UNIVERSITY CITY SCIENCE CENTER RELATED 25458 0 0 0.75000 UNIVERSITY PARK ASSOCIATES II LLC 3711 MARKET STREET SUITE 800 PHILADELPHIA PA 19104 233011120 OFFICE BUILDING PA UNIVERSITY CITY SCIENCE CENTER RELATED -64897 0 0 0.75000 WHALEY PARTNERS LP 3711 MARKET STREET 8TH FLOOR PHILADELPHIA PA 19104 208824011 INVESTMENT PA UNIVERSITY CITY SCIENCE CENTER RELATED 91084 158156 0 0 0.80070 PORT OF TECHNOLOGY INC 3711 MARKET STREET SUITE 400 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 -363959 246804 1.00000 0 0 0 0 1 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 RESEARCH PARK INC L 387888 RESEARCH PARK INC P 18000 RESEARCH PARK INC - NET INTERCOMPANY CHANGE D -588137 RESEARCH PARK INC J 275925