2021-02-08T11:02:03-06:00 2019-12-31 911194016 CLARK NUBER PS 10900 NE 4TH STREET SUITE 1400 BELLEVUE WA 98004 990 2019-01-01 911608978 INFECTIOUS DISEASE RESEARCH INSTITUTE INFE 2063810883 1616 EASTLAKE AVE E NO 400 SEATTLE WA 98102 NEIL O'CONNOR COO, CFO 2063810883 2021-02-06 1 SARA ELIZABETH J HYRE P00235495 4254544919 2021-02-08 2019 2022-09-23 18:48:47Z COREY CASPER 1616 EASTLAKE AVE E NO 400 SEATTLE WA 98102 27898082 0 X WWW.IDRI.ORG X 1993 WA DEVELOP VACCINES, ADJUVANTS, DIAGNOSTICS & DRUGS TO PREVENT, DETECT & TREAT INFECTIOUS DISEASES OF GLOBAL IMPORTANCE. X 0 0 147 6 0 0 15418545 11251999 13483827 11179733 38533 -465831 13225 10115 28954130 21976016 493450 1739026 0 0 12611006 12177738 0 0 559271 15896565 15130135 29001021 29046899 -46891 -7070883 28838131 16784379 23875963 20143498 4962168 -3359119 X AS A "NONPROFIT BIOTECH," IDRI COMBINES THE HIGH-QUALITY SCIENCE OF A RESEARCH ORGANIZATION WITH THE PRODUCT DEVELOPMENT CAPABILITIES OF A BIOTECH COMPANY TO CREATE NEW DIAGNOSTICS, DRUGS AND VACCINES FOR INFECTIOUS DISEASES AND IMPROVE THE HEALTH OF THE WORLD. 0 0 9666769 1739026 2921738 VACCINE RESEARCH - IDRI SCIENTISTS ARE DEVELOPING INNOVATIVE VACCINES TO COMBAT THE DEADLIEST OF NEGLECTED TROPICAL DISEASES AS WELL AS THE MOST COMMON AND ENABLE LOCAL PRODUCTION OF THESE VACCINES. BEYOND THEIR ROLE IN PREVENTING DISEASE, THESE VACCINES CAN ALSO BE USED AS THERAPEUTIC AGENTS AND TO PREVENT RECURRENCE IN AFFECTED INDIVIDUALS. IDRI TARGETS INFECTIOUS DISEASES SUCH AS TUBERCULOSIS, LEPROSY AND LEISHMANIASIS, AS WELL AS NEWLY EMERGING THREATS INCLUDING ZIKA AND CHIKUNGUNYA. THE GOAL OF IDRI'S VACCINE WORK IS TO PRODUCE SAFE, EFFECTIVE AND LOW-COST VACCINES AND TO TRANSFER VACCINE TECHNOLOGY AND EXPERTISE TO DEVELOPING COUNTRIES TO DELIVER VACCINES TO THE PEOPLE WHO NEED THEM THE MOST. IDRI SCIENTISTS ARE DEVELOPING AND MANUFACTURING NEXT GENERATION VACCINES INCLUDING THOSE BASED ON RNA TECHNOLOGY, TO RESPOND QUICKLY WHEN DISEASE OUTBREAKS OCCUR. IDRI HAS A ROBUST PIPELINE OF NEW VACCINE CANDIDATES WHICH ARE MOVING SUCCESSFULLY THROUGH EARLY CLINICAL TRIALS. 5208773 1993916 TUBERCULOSIS DRUG DISCOVERY - IDRI'S TUBERCULOSIS DRUG DISCOVERY GROUP IS FOCUSED ON DISCOVERING AND DEVELOPING NOVEL DRUGS THAT ARE EFFECTIVE AT CURING DRUG SENSITIVE AND DRUG RESISTANT TB WITH THE ADDED GOAL OF SHORTENING THE TIME IT TAKES TO CURE DISEASE. TO DATE, SCIENTISTS AT IDRI HAVE SCREENED MORE THAN HALF A MILLION COMPOUNDS, CONTINUING THE IDENTIFICATION OF NEW LEADS AND DRUG TARGETS TO COMBAT TB. IDRI IS A FOUNDING MEMBER OF THE LILLY TB DRUG DISCOVERY INITIATIVE - HEADQUARTERED AT IDRI - AND THE TB DRUG ACCELERATOR (TBDA). THE LILLY INITIATIVE IS A UNIQUE PUBLIC-PRIVATE PARTNERSHIP WITH ELI LILLY AND COMPANY AND THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES (NIAID), PART OF THE NATIONAL INSTITUTES OF HEALTH (NIH), WITH A FOCUS ON THE DISCOVERY OF NEW ANTI-TUBERCULOSIS DRUGS. THE TBDA WAS FOUNDED AS A PARTNERSHIP OF SEVEN PHARMACEUTICAL COMPANIES AND FIVE OTHER ORGANIZATIONS, FUNDED IN PART BY THE BILL & MELINDA GATES FOUNDATION, TO TARGET THE DISCOVERY OF NEW TB DRUGS BY COLLABORATING ON EARLY-STAGE DRUG DISCOVERY FOR TUBERCULOSIS. 2659326 2992514 ADJUVANT RESEARCH - ADJUVANTS ARE POWERFUL SYNTHETIC SUBSTANCES WHICH CAN BE ADDED TO VACCINES TO ENHANCE THE ABILITY OF ANTIGENS TO STIMULATE THE BODY'S IMMUNE RESPONSE. IDRI SCIENTISTS ARE PIONEERS IN OPTIMIZING ADJUVANT AND VACCINE FORMULATIONS AND IDRI POSSESS THE WORLD'S LEADING PORTFOLIO OF ADJUVANT FORMULATIONS. THEY PROVIDE A KEY BENEFIT TO VACCINE DEVELOPMENT BY: IMPROVING IMMUNE RESPONSE, BROADENING VACCINE PROTECTION AND REDUCING THE AMOUNT OF VACCINE NEEDED. IDRI SCIENTISTS HAVE DEVELOPED MOLECULES THAT STIMULATE AN EARLY WARNING IN THE BODY'S IMMUNE SYSTEM CAUSING A POWERFUL, BROAD IMMUNE RESPONSE TO DEFINED ANTIGENS. THEY ARE FOCUSING ON HOW THAT STIMULATION TRANSLATES INTO BROAD PROTECTION AGAINST VARIOUS PATHOGENS AND HELPS REDUCE THE REQUIRED VACCINE DOSE AND NUMBER OF SHOTS A PATIENT MAY NEED. IDRI'S DEEP EXPERIENCE IN ADJUVANT DEVELOPMENT PROVIDES A UNIQUE DEPTH OF KNOWLEDGE OF REGULATORY REQUIREMENTS OF BOTH US AND FOREIGN REGULATORY AGENCIES. 2674949 1509248 IDRI'S CLINICAL GROUP DESIGNS AND CONDUCTS EARLY STAGE CLINICAL TRIALS TO TEST THE VACCINE CANDIDATES IDENTIFIED BY IDRI SCIENTISTS OR COLLABORATORS. THROUGH OUR NETWORK OF GLOBAL COLLABORATIONS AND WITH DEEP KNOWLEDGE OF REGULATORY PROCESSES AND PROCEDURES IN THE US AND FOREIGN COUNTRIES, THE CLINICAL TEAM IS ABLE TO LAUNCH CLINICAL TRIALS ALMOST ANYWHERE IN THE WORLD. 1537274 1762317 MANUFACTURING - WITH SUPPORT FROM THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES, IDRI HAS CREATED A COMMERCIAL SCALE MANUFACTURING CAPABILITY THAT ALLOWS RAPID SCALE-UP AND PRODUCTION AND COMPLETES IDRI'S UNIQUE VACCINE DISCOVERY-DEVELOPMENT PROCESS. WITH ITS MANUFACTURING CAPABILITIES, IDRI IS LEADING THE WAY IN HELPING PREPARE THE WORLD IN CASE ON ANOTHER PANDEMIC FLU OUTBREAK. IDRI HAS DEMONSTRATED ITS ABILITY TO PRODUCE 200 LITERS OF ITS SE ADJUVANT IN JUST A SINGLE DAY ENOUGH TO ENABLE 5 MILLION DOSES OF VACCINE IN CAUSE OF AN OUTBREAK. CONCURRENTLY, WHEN IDRI SCIENTISTS IDENTIFY A VACCINE CANDIDATE IN THE LABORATORY, THIS MANUFACTURING CAPABILITY ENABLES THEM TO APPLY THAT DISCOVERY BY PRODUCING VACCINES UNDER CONTROLLED CONDITIONS SO THAT THEY ARE SUITABLE FOR USE IN HUMAN STUDIES. THIS ENABLES IDRI TO MOVE A VACCINE FROM LATE STAGE RESEARCH TO EARLY CLINICAL STUDIES. 4212223 3271565 21747091 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 1 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 34 0 1 147 1 0 0 0 0 0 0 0 0 0 0 0 0 X 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 0 X NEIL O'CONNOR 2063810883 1616 EASTLAKE AVE E SUITE 400 SEATTLE WA 98102 MICHAEL BASSOF EVP, PHILANTHROPY 40.00 X 416199 0 23971 COREY CASPER INTERIM PRESIDENT & CEO 40.00 X 388432 0 23147 STEVEN REED PH D FOUNDER, DISTINGUISHED INVESTIGATOR 32.00 X X 359201 0 27246 ANNA MARIE BECKMANN SVP, DEVELOPMENT & REGULATORY 40.00 X 240005 0 28767 RHEA COLER SVP, PRE-CLIN. & TRANSL. RESEARCH 40.00 X 214552 0 24393 TANYA PARISH SVP, DRUG DISCOVERY 40.00 X 216265 0 9392 WINSTON WINCOMB DIR. OF VIVARIUM 40.00 X 182577 0 21738 CHRISTOPHER FOX VP, FORMULATIONS 40.00 X 156665 0 26646 LINDA HAWKINS DIR. QUALITY ASSURANCE & COMPLIANCE 40.00 X 151555 0 22114 CHRISTOPHER ANTONY VP, OPERATIONS 40.00 X 156845 0 12855 RYAN KRAMER DIR., PROCESS & PRODUCT DEV. 40.00 X 137544 0 23084 ROBRICK SMITH DIR., INFORMATION TECHNOLOGY 40.00 X 134879 0 24173 AUDE FREVOL ASSOC. DIRECTOR, CLINICAL OPS. 40.00 X 131927 0 25168 JESSE ERASMUS POSTDOCTORAL FELLOW 40.00 X 126159 0 23493 ERIK LAURSEN DIRECTOR, GMP OPERATIONS 40.00 X 125628 0 14953 RICHARD LAUTCH COO 40.00 X 53071 0 2780 FRANKLYN PRENDERGAST MD PHD CHAIRMAN 5.00 X X 0 0 0 NORMAN BAYLOR PH D DIRECTOR 1.00 X 0 0 0 MICHEL DEWILDE PH D DIRECTOR 1.00 X 0 0 0 MASSIMO RADAELLI PH D DIRECTOR 1.00 X 0 0 0 JERRY MCDOUGALL DIRECTOR 1.00 X 0 0 0 ERIK IVERSON DIRECTOR 1.00 X 0 0 0 3191504 0 333920 31 0 1 0 LGENIA INC 412 S MAPLE ST SUITE 104 FORTVILLE IN 46040 RESEARCH 1250000 FUNDACAO BUTANTAN AV VITAL BRAZIL 1500 SAO PAULO SP BR 05503-900 RESEARCH 389752 MORNINGSIDE TRANSLATIONS LLC 450 7TH AVE SUITE 1001 NEW YORK NY 10123 LANGUAGE SERVICES 266034 THOMSON LAW PLLC 838 CHRISTIAN WAY BELLINGHAM WA 98229 LEGAL FEES 248570 DAVID KEOGH 8015 23RD AVE NW SEATTLE WA 98117 MANAGEMENT CONSULTING 172750 15 7943729 3308270 11251999 SERVICES AND CONTRACTS 541700 9593900 9593900 LICENSING 541700 1585833 1585833 11179733 3308 3308 10128 0 10128 10128 10128 5452927 5430268 491798 22659 -491798 -469139 -469139 FOREIGN CURRENCY LOSS 900099 -13 -13 -13 21976016 11179733 0 -455716 1451927 1451927 287099 287099 2659118 1853182 375847 430089 7447515 5718447 1682214 46854 257486 189750 58114 9622 1099746 834296 235272 30178 713873 542544 149913 21416 820651 820651 85858 85858 202917 147710 52007 3200 20587 11449 4945 4193 73615 1084 64131 8400 316733 50071 266662 438633 438633 2927216 2215619 706278 5319 307604 202855 104749 17487 14867 2620 22637 22637 2461900 2226289 235611 146259 146259 LAB SUPPLIES 4257656 3981353 276303 SUBCONTRACTS 1382750 1210000 172750 REPAIRS & MAINTENANCE 614268 471452 142816 UBI TAX 6633 6633 1026731 337097 689634 29046899 21747091 6740537 559271 4684044 560115 2306530 883783 5225598 1797762 1011369 1072560 968886 777142 283189 165515 26536181 15117533 14213861 11418648 115104 108854 29550 0 28838131 16784379 3488337 2457537 6414233 3562652 0 1524610 13973393 12598699 23875963 20143498 X 325212 -5345681 4636956 1986562 4962168 -3359119 28838131 16784379 X -7070883 -1849 -1248555 X 0 1 X 1 1 1 X 18340233 10055782 11656120 14143765 11251999 65447899 18340233 10055782 11656120 14143765 11251999 65447899 7405238 58042661 1672937 1003630 941071 45438 13436 3676512 11373 8216 70307 -536 -13 89347 69213758 51090391 0.83860 0.76970 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS - 2017 AMOUNT: $ 70,307. REIMBURSEMENTS - 2016 AMOUNT: $ 413. STORAGE - 2016 AMOUNT: $ 7,803. CURRENCY EXCHANGE - 2015 AMOUNT: $ 11,373. 2018 AMOUNT: $ -536. 2019 AMOUNT: $ -13. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 15217676 6852425 8365251 11318505 8265108 3053397 11418648 DEFERRED RENT 12598699 12598699 20306978 -1849 -1667189 -1669038 21976016 0 21976016 28628265 0 28628265 418634 418634 29046899 PART XI, LINE 2D - OTHER ADJUSTMENTS: GRANT WRITE-OFF -36. LOSS ON UNCOLLECTIBLE PLEDGE -1,274,780. ROYALTY EXPENSE -418,634. DISCOUNT ON LONG TERM PLEDGE 26,261. PART XII, LINE 4B - OTHER ADJUSTMENTS: ROYALTY EXPENSE 418,634. 0 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION N/A 91925 SOUTH ASIA 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION N/A 13947 EAST ASIA AND THE PACIFIC 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION N/A 141227 NORTH AMERICA 0 0 GRANTS TO RECIPIENTS LOCATED IN THE REGION N/A 40000 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES RESEARCH 281195 SOUTH ASIA 0 0 PROGRAM SERVICES RESEARCH 30425 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES RESEARCH 26958 NORTH AMERICA 0 0 PROGRAM SERVICES RESEARCH 75210 SOUTH AMERICA 0 0 PROGRAM SERVICES RESEARCH 389752 0 0 0 0 0 0 700887 389752 1090639 EAST ASIA AND THE PACIFIC RESEARCH 20793 WIRE TRANSFER SOUTH ASIA RESEARCH 13947 WIRE TRANSFER EUROPE (INCLUDING ICELAND & GREENLAND) RESEARCH 91925 WIRE TRANSFER EAST ASIA AND THE PACIFIC RESEARCH 120434 WIRE TRANSFER NORTH AMERICA RESEARCH 40000 WIRE TRANSFER 4 1 0 0 0 0 0 0 PART I, LINE 3: THE EXPENDITURES REPORTED ON SCHEDULE F, PART I, LINE 3 ARE ON ACCRUAL BASIS OF ACCOUNTING. PART III ACCOUNTING METHOD: 1 ST LOUIS UNIVERSITY 3700 W PINE MALL 255 SAINT LOUIS MO 63103 430654872 501(C)(3) 280230 RESEARCH COVANCE CLINICAL RESEARCH UNIT 3402 KINSMAN BLVD MADISON WI 53704 581695239 35633 RESEARCH DFNET RESEARCH INC 140 LAKESIDE AVE STE 310 SEATTLE WA 981226538 200852149 30734 RESEARCH AMYRIS INC 5885 HOLLIS ST STE 100 EMERYVILLE CA 946082059 550856151 374856 RESEARCH UNIVERSITY OF VIRGINIA 1001 NORTH EMMET STREET PO BOX 400195 CHARLOTTESVILLE VA 229044195 546001796 501(C)(3) 539919 RESEARCH RTI INTERNATIONAL 3040 EAST CORNWALLIS ROAD RESEARCH TRIANGLE PARK NC 277092194 560686338 97504 RESEARCH UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL CB 3490 MCCOLL BUILDING CHAPEL HILL NC 275990001 566001393 501(C)(3) 7306 RESEARCH COLORADO STATE UNIVERSITY 200 WEST LAKE STREET FORT COLLINS CO 805214593 846000545 501(C)(3) 85745 RESEARCH 4 4 PART I, LINE 2: ALL PAYMENTS MADE FOR PROGRAM SERVICES WITHIN THE U.S. ARE BASED ON LEGAL AGREEMENTS BETWEEN IDRI AND THE PARTY RECEIVING PAYMENT. THESE AGREEMENTS INCLUDE REQUIREMENTS FOR BOTH PROGRESS AND FINANCIAL REPORTING BASED ON TIME PERIODS OR MILESTONE ACHIEVEMENTS. REPORTS ARE REVIEWED BY SCIENTIFIC AND ADMINISTRATIVE STAFF TO ENSURE THAT THE GOALS OF THE AGREEMENT AND ANY SPECIFIC FINANCIAL RESTRICTIONS ARE BEING MET BEFORE FURTHER PAYMENT IS MADE. MOST AGREEMENTS ALSO CONTAIN A CLAUSE GIVING IDRI THE RIGHT TO AUDIT FINANCIAL RECORDS OF THE PARTY IF NEEDED. X X 1 0 0 1 0 0 0 0 0 MICHAEL BASSOF EVP, PHILANTHROPY 276199 0 0 0 140000 0 11000 0 12971 0 440170 0 0 0 COREY CASPER INTERIM PRESIDENT & CEO 388432 0 0 0 0 0 10568 0 12579 0 411579 0 0 0 STEVEN REED PH D FOUNDER, DISTINGUISHED INVESTIGATOR 359201 0 0 0 0 0 11000 0 16246 0 386447 0 0 0 ANNA MARIE BECKMANN SVP, DEVELOPMENT & REGULATORY 240005 0 0 0 0 0 9756 0 19011 0 268772 0 0 0 RHEA COLER SVP, PRE-CLIN. & TRANSL. RESEARCH 214552 0 0 0 0 0 4011 0 20382 0 238945 0 0 0 TANYA PARISH SVP, DRUG DISCOVERY 216265 0 0 0 0 0 7334 0 2058 0 225657 0 0 0 WINSTON WINCOMB DIR. OF VIVARIUM 182577 0 0 0 0 0 5798 0 15940 0 204315 0 0 0 CHRISTOPHER FOX VP, FORMULATIONS 156665 0 0 0 0 0 6602 0 20044 0 183311 0 0 0 LINDA HAWKINS DIR. QUALITY ASSURANCE & COMPLIANCE 151555 0 0 0 0 0 6220 0 15894 0 173669 0 0 0 CHRISTOPHER ANTONY VP, OPERATIONS 156845 0 0 0 0 0 3676 0 9179 0 169700 0 0 0 RYAN KRAMER DIR., PROCESS & PRODUCT DEV. 137544 0 0 0 0 0 5519 0 17565 0 160628 0 0 0 ROBRICK SMITH DIR., INFORMATION TECHNOLOGY 134879 0 0 0 0 0 4287 0 19886 0 159052 0 0 0 AUDE FREVOL ASSOC. DIRECTOR, CLINICAL OPS. 131927 0 0 0 0 0 5382 0 19786 0 157095 0 0 0 PART I, LINE 4A MICHAEL BASSOF RECEIVE A SEVERANCE PAYMENT OF $140,000 IN 2019. PART I, LINE 5 INVENTOR REVENUES SHARED WITH STEVEN R. REED AND OTHER PATENT HOLDERS WHEN IP IS LICENSED. ASSETS INCLUDING CASH, ACCOUNTS/PLEDGES RECEIVABLE AND FIXED ASSETS 2019-12-31 12314819 BOOK 0 0 0 0 FORM 990, SCHEDULE N, PART II: TO ADDRESS IDRI'S DETERIORATING CASH FLOW POSITION, IN LATE NOVEMBER AND DECEMBER 2019 TWO REDUCTIONS IN FORCE TOOK PLACE, REDUCING IDRI'S HEADCOUNT BY OVER 60%.HOWEVER, THESE ACTIONS PROVED INSUFFICIENT AND ON DECEMBER 20, 2019, AS FURTHER EFFORTS TO RESOLVE THE SITUATION PROVED UNSUCCESSFUL, IDRI'S BOARD OF DIRECTORS VOTED TO PLACE IDRI INTO VOLUNTARY WASHINGTON STATE RECEIVERSHIP AND THE BOARD WAS DISSOLVED. THE RECEIVERSHIP BECAME EFFECTIVE ON JANUARY 2, 2020.IDRI CURRENTLY HAS NO PLANS FOR DISSOLUTION OR LIQUIDATION. THE RECEIVER AND IDRI'S MANAGEMENT HAVE AND WILL CONTINUE TO RESTRUCTURE THE ORGANIZATION'S BUSINESS AND EXPECT TO SUCCESSFULLY EXIT RECEIVERSHIP SOMETIME IN THE SECOND HALF OF 2021. FORM 990, PART 1, LINE 6: THERE WERE SIX VOLUNTEER BOARD MEMBERS DURING THE YEAR. BOARD MEMBERS PARTICIPATE IN STRATEGIC PLANNING, FINANCIAL OVERSIGHT, EXECUTIVE LEADERSHIP RECRUITMENT AND SELECTION, BUSINESS DEVELOP STRATEGY, AND SCIENTIFIC ADVICE. THEY COME FROM A VARIETY OF BACKGROUNDS AND DEMONSTRATE FINANCIAL EXPERTISE, LIFE SCIENCES NOT-FOR-PROFIT EXPERTISE, AND AN UNDERSTANDING OF BUSINESS AND BIOTECH LICENSING. FORM 990, PART VI, SECTION B, LINE 11B A DRAFT COPY OF THE FORM 990 IS PRESENTED TO THE RECEIVER FOR REVIEW. THE RECEIVER REVIEWS AND APPROVES THE FORM 990 ON BEHALF OF IDRI. THE EXECUTIVE MANAGEMENT MEMBERS RECEIVE A COPY OF THE FORM 990 PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C IN MARCH, MEMBERS OF THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT ARE GIVEN A COPY OF THE CONFLICT OF INTEREST POLICY. THEY ARE REQUIRED TO FILL IT OUT AND RETURN IT BY THE FIRST BOARD MEETING - USUALLY SOMETIME IN THE FIRST QUARTER. THE SENIOR VICE PRESIDENT OF OPERATIONS AND GENERAL COUNSEL REVIEWS THE QUESTIONNAIRES AND SUMMARIZES THE RESULTS. THE RESULTS ARE COMMUNICATED TO THE BOARD OF DIRECTORS. TO THE EXTENT THAT THERE ARE ANY CONFLICTS, THE MEMBER IS RECUSED FROM ANY DECISION MAKING THAT WOULD INCLUDE THE CONFLICT. WHEN THE OCCASION ARISES, THOSE MEMBERS ALSO REMIND THE GROUP (MANAGEMENT TEAM OR BOARD) THAT THERE IS A POTENTIAL CONFLICT WHEN SPECIFIC DISCUSSION TOPICS ARISE. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE CONDUCTED A FULL CEO PERFORMANCE AND COMPENSATION REVIEW, INITIATED IN 2017, USING AN OUTSIDE INDEPENDENT CONSULTANT. THE REPORT IS IN THE BOARD MATERIALS AND IN THE PERSONNEL FILE. THE DECISIONS ARE IN THE COMPENSATION COMMITTEE NOTES. COMPARATIVE COMPENSATION INFORMATION WAS USED FROM THE CULPEPPER AND RADFORD PROFESSIONAL COMPENSATION FIRMS. THE BOARD CHAIR ALSO DOES AN ANNUAL REVIEW OF ALL OTHER OFFICERS AND KEY EMPLOYEES AND WORKS WITH THE HUMAN RESOURCES DEPARTMENT TO DETERMINE IF THE COMPENSATION IS ADEQUATE. IF AN ADJUSTMENT IS DEEMED NECESSARY, THE BOARD CHAIR CONVENES THE COMPENSATION COMMITTEE AND THE ADJUSTMENT IS ADDRESSED. THE BOARD CHAIR REPORTS BACK TO THE HUMAN RESOURCES DEPARTMENT WHO FOLLOWS THROUGH WITH THE COMMITTEE'S RECOMMENDATION. FORM 990, PART VI, SECTION C, LINE 19 REQUESTS FOR INFORMATION SUCH AS AUDITED FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICT OF INTEREST POLICY ARE HANDLED THROUGH OUR FINANCE DEPARTMENT AND INFORMATION IS DISTRIBUTED AS REQUESTED UNLESS CONFIDENTIAL IN NATURE. FORM 990, PART XI, LINE 9: LOSS ON UNCOLLECTIBLE PLEDGE -1,274,780. DISCOUNT ON LONG TERM PLEDGE 26,261. GRANT WRITE-OFF -36.