Financial Statements and Supplementary Information. Venture Café Foundation, Inc.

Transcription

1 Financial Statements and Supplementary Information Venture Café Foundation, Inc. December 31, 2016 and 2015

2 Financial Statements and Supplementary Information Table of Contents Financial Statements: Independent Auditors Report 1-2 Statements of Financial Position 3 Statements of Activities and Changes in Net Assets 4-5 Statements of Cash Flows 6 Notes to Financial Statements 7-14 Supplementary Information: Independent Auditors Report on Supplementary Information 15 Supplemental Schedules of District Hall Activities and Changes in Net Assets 16-17

3 Independent Auditors Report Board of Directors Venture Café Foundation, Inc. Cambridge, Massachusetts Report on the Financial Statements We have audited the accompanying financial statements of Venture Café Foundation, Inc. (the Foundation ), which comprise the statements of financial position as of December 31, 2016 and 2015, and the related statements of activities and changes in net assets, and cash flows for the years then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Venture Café Foundation, Inc. as of December 31, 2016 and 2015, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. December 1, 2017 Boston, Massachusetts

5 Statements of Financial Position December 31, Assets Cash $ 377,567 $ 663,484 Accounts receivable 101, ,402 Prepaid expense and other assets 93,035 66,940 Property and equipment, net 317, ,970 Note receivable 180,000 - Total assets $ 1,069,822 $ 1,274,796 Liabilities and Net Assets Liabilities: Accounts payable and accrued expenses $ 279,736 $ 644,209 Contribution payable - 74,195 Deferred revenue 167, ,746 Total liabilities 447, ,150 Net assets: Unrestricted 622, ,352 Temporarily restricted - 118,294 Total net assets 622, ,646 Total liabilities and net assets $ 1,069,822 $ 1,274,796 See accompanying notes to the financial statements. 3

6 Statements of Activities and Changes in Net Assets Years Ended December 31, Temporarily Permanently Unrestricted Restricted Restricted Total Total Revenues: Donations $ 361,725 $ - $ - $ 361,725 $ 402,116 Grants - 189, , ,997 Sponsorships 212, , ,763 Room rental 647, , ,208 Membership dues ,000 Innovation tours 21, ,830 8,795 Management fees 50, ,000 50,000 Restaurant rental 119, ,697 97,850 Other 13, ,015 - Net assets released from restrictions 307,326 (307,326) Total revenue 1,733,732 (118,294) - 1,615,438 1,541,729 Expenses: Program expenses 1,372, ,372,600 1,392,205 Fundraising 31, ,738 15,568 General and administrative 127, ,501 94,970 Total operating expenses 1,531, ,531,839 1,502,743 Increase in net assets from operating activities 201,893 (118,294) - 83,599 38,986 Non-operating activities: Gain on sale of trademark 225, ,000 - Contribution to Venture Café St. Louis (74,195) Non-operating gain (loss) 225, ,000 (74,195) Total change in net assets 426,893 (118,294) - 308,599 (35,209) Net assets, beginning 195, , , ,855 Net assets, ending $ 622,245 $ - $ - $ 622,245 $ 313,646 See accompanying notes to the financial statements. 4

7 Statement of Activities and Changes in Net Assets Year Ended December 31, 2015 Temporarily Permanently Unrestricted Restricted Restricted Total Revenues: Donations $ 402,116 $ - $ - $ 402,116 Grants 119, ,997 Sponsorships 259, ,763 Room rental 573, ,208 Membership dues 30, ,000 Innovation tours 8, ,795 Management fees 50, ,000 Restaurant rental 97, ,850 Net assets released from restrictions 181,546 (181,546) - - Total revenue 1,723,275 (181,546) - 1,541,729 Expenses: Program expenses 1,392, ,392,205 Fundraising 15, ,568 General and administrative 94, ,970 Total operating expenses 1,502, ,502,743 Increase in net assets from operating activities 220,532 (181,546) - 38,986 Non-operating activities: Contribution to Venture Café St. Louis (74,195) - - (74,195) Total change in net assets 146,337 (181,546) - (35,209) Net assets, beginning 49, , ,855 Net assets, ending $ 195,352 $ 118,294 $ - $ 313,646 See accompanying notes to the financial statements. 5

8 Statements of Cash Flows Years Ended December 31, Cash flows from operating activities: Change in net assets $ 308,599 $ (35,209) Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Gain on sale of trademark (225,000) - Depreciation 77,138 32,662 Loss on disposal of property and equipment 242 8,567 Bad debt expense - 3,200 Straight-line rental income (24,875) (28,350) Contributions in kind (108,532) - Change in: Accounts receivable 185,728 (68,840) Prepaid expenses and other assets (1,220) (8,652) Accounts payable and accrued expenses (364,473) 142,036 Contribution payable (74,195) 74,195 Deferred revenue (74,905) 77,454 Due to related parties - 69,307 Net cash provided by (used in) operating activities (301,493) 266,370 Cash flows from investing activities: Purchase of property and equipment (29,774) (134,308) Proceeds from the sale of property and equipment 350 5,600 Issuance of note receivable 45,000 - Net cash provided by (used in) investing activities 15,576 (128,708) Net increase (decrease) in cash (285,917) 137,662 Cash, beginning 663, ,822 Cash, ending $ 377,567 $ 663,484 See accompanying notes to the financial statements. 6

9 Notes to Financial Statements Note 1 - Organization and Summary of Significant Accounting Policies The Venture Café Foundation ( VCF or the Foundation ) is a 501(c)(3) Massachusetts not-for-profit organized in 2012 that is focused on enhancing the economy of Greater Boston and the New England region by providing innovators with interactive forums for information, resources and connections that they need to start and grow businesses. VCF s vision is to connect innovators to create a network of empowered individuals and communities who feel confident in their ideas and have the resources to achieve them. By providing spaces, programs, and connections, VCF can strengthen our local and global communities to tackle problems with creative solutions. VCF s mission is to broaden, connect, and support an inclusive innovation community through a public network of spaces and programs to help anyone with an idea have the opportunity to succeed. VCF has been operating sites and programs in Greater Boston and based on the success of the Venture Café Foundation in Greater Boston, the program is being replicated by other Venture Café nonprofit entities as part of a growing network. Separately operated Venture Cafés have now opened in St. Louis in 2014, Rotterdam in 2015, Miami in 2016 and Winston Salem in A summary of significant accounting policies applied consistently to the financial statements is as follows: Financial Statement Presentation The financial statements are presented on the accrual basis of accounting and are presented based on any donorimposed restrictions or lack thereof. Accordingly, the net assets of the Foundation and changes therein are classified and reported as follows: Cash Unrestricted net assets - represent the portion of net assets that is neither permanently restricted nor temporarily restricted by donor-imposed stipulations. Temporarily restricted net assets - include funds with donor-specified restrictions that are satisfied by usage in accordance with donor requirements or the passage of time. Temporarily restricted net assets are available for operational support and facilities. Net assets are typically released from donor restrictions as a result of expenditures for operations and facilities as specified by the donors. Permanently restricted net assets - include assets that allow the Foundation to expend part, or all, of any income derived from the donated assets. The Foundation had no such net assets at December 31, 2016 and Cash includes all highly liquid instruments purchased with an original maturity of three months or less. The Foundation maintains its cash balances at several financial institutions, which, at times, may exceed federally insured limits. The Foundation monitors its exposure associated with cash and has not experienced any losses in such accounts. 7

10 Notes to Financial Statements Note 1 - Organization and Summary of Significant Accounting Policies (Continued) Accounts Receivable Accounts receivable are carried at original invoice amounts less an estimated amount for doubtful accounts based on collections history and a review of all outstanding amounts by management. Balances are considered past due when payment is not consistent with contractual terms. Accounts receivable are written off against the allowance when deemed uncollectible. Adjustments to the allowance are charged to bad debt expense. Bad debt expense for the years ended December 31, 2016 and 2015 was $0 and $3,200, respectively. As of December 31, 2016 and 2015, all accounts receivable were deemed collectable. Property and Equipment Property and equipment are recorded at cost except for donated equipment which is valued at fair value at the time of donation using Level 3 inputs. Major additions and improvements are capitalized, while repairs and maintenance are charged to expense as incurred. Depreciation is calculated on the straight-line method over the following estimated useful lives: Furniture and fixtures Computer and office equipment Leasehold improvements 7 years 3-5 years Lesser of the useful life or lease term Revenue Recognition and Deferred Revenue The Foundation earns sponsorship revenue, membership revenue and restaurant rental revenue under various agreements. Sponsorship and membership revenue is recognized when earned based on agreement terms over the term of the agreements. Restaurant rental revenue is recognized on the straight-line method over the term of the agreement. Program service revenue consisting of innovation tours and room rentals is recognized when the services are provided. Funds received prior to delivery of services are classified as deferred revenue until such time services are delivered. As of December 31, 2016 and 2015, deferred revenue consisted of deferred sponsorship, room rental and membership revenues. Grants and Donations Grants and donations, including unconditional promises to give, are recognized as revenues in the period verifiably committed. Donations of assets other than cash are recorded at fair value at the original date of recognition. Conditional donations and intentions to give are recorded as revenue when the conditions have been met. Donations are reflected as unrestricted, temporarily restricted or permanently restricted based on the existence or absence of donor restrictions. Amounts received with donor-imposed restrictions are recorded as temporarily restricted revenues until expended or such time as the restriction is removed as specified by the donor. 8

11 Notes to Financial Statements Note 1 - Organization and Summary of Significant Accounting Policies (Continued) Grants and Donations (Continued) Promises to give that are to be received after one year are initially recorded at fair value using Level 2 inputs based on the present value using a risk adjusted discount rate and expected collections. As of December 31, 2016 and 2015, there are no such receivables. Donations received with donor-imposed restrictions are recorded as temporarily restricted until such time as the restrictive requirements are satisfied. Donated Services Donated services are recognized as contributions at their fair value using Level 3 inputs, if the services create or enhance nonfinancial assets or require specialized skills, are performed by people with those skills, and would otherwise be purchased by the Foundation. Donated services recorded by the Foundation for the years ended December 31, 2016 and 2015 were $0 and 63,704, respectively. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant management estimates included in the financial statements relate to the allowance for doubtful accounts and estimated useful lives of property and equipment. Income Taxes The Foundation is recognized by the Internal Revenue Service as an organization described in Section 501(c)(3) of the Internal Revenue Code (the Code) and is generally exempt from federal and state income taxes on related income. However, the Foundation is subject to federal income taxes on unrelated business income. The Foundation had no material tax liability due to unrelated business income for the years ended December 31, 2016 and Uncertain Tax Positions The Foundation accounts for the effect of any uncertain tax positions based on a more likely than not threshold to the recognition of the tax positions being sustained based on the technical merits of the position under scrutiny by the applicable taxing authority. If a tax position or positions are deemed to result in uncertainties of those positions, the unrecognized tax benefit is estimated based on a cumulative probability assessment that aggregates the estimated tax liability for all uncertain tax positions. The Foundation has identified its tax status as a tax-exempt entity as a tax position; however, the Foundation has determined that such tax position does not result in an uncertainty requiring recognition. The Foundation is not currently under examination by any taxing jurisdictions. The Foundation s federal and state tax returns are generally open for examination for three years following the date filed. 9

12 Notes to Financial Statements Note 1 - Organization and Summary of Significant Accounting Policies (Continued) Advertising The Foundation expenses the costs of advertising as incurred. The Foundation incurred advertising expense of approximately $7,500 and $9,800 for the years ended December 31, 2016 and 2015, respectively. Functional Allocation of Expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the statements of activities and changes in net assets. Accordingly, certain costs have been allocated among programs and supporting services benefited. Fair Value Measurements VCF reports required types of financial instruments in accordance with the fair value standards. These standards require an entity to maximize the use of observable inputs (such as quoted prices in active markets) and minimize the use of unobservable inputs (such as appraisals or valuation techniques) to determine fair value. Fair value standards also require VCF to classify these financial instruments into a three-level hierarchy, based on the priority of inputs to the valuation technique or in accordance with net asset value practical expedient rules, which allow for net asset value to represent fair value. The three levels of the fair value hierarchy are described below: Level 1 Inputs to the valuation methodology are unadjusted or quoted prices for identical assets and liabilities in active markets VCF has the ability to access. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in inactive markets; inputs other than quoted market prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The inputs into the determination of fair value require significant management judgment or estimation. In some instances, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. The asset or liability s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. 10

13 Notes to Financial Statements Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Continued) Reclassifications Certain reclassifications have been made to prior year amounts to conform to current year presentation. There is no effect on previously reported net assets. Subsequent Events The Foundation has evaluated subsequent events through December 1, 2017, the date the financial statements were authorized to be issued. No significant matters were identified for disclosure during this evaluation. Note 2 - Property and Equipment Property and equipment, net consisted of the following at December 31: Furniture and fixtures $ 199,379 $ 194,139 Computers and office equipment 201,857 83,545 Leasehold improvements 30,952 17, , ,519 Less accumulated depreciation (114,642) (38,549) Total property and equipment, net $ 317,546 $ 256,970 Depreciation expense on property and equipment was $77,138 and $32,662 for the years ended December 31, 2016 and 2015, respectively. During the year ended December 31, 2016, the Foundation received $108,532 donations in kind which consisted of computers and equipment for certain programs. In 2016, the Foundation transferred assets with a net book value of $2,670 to Venture Café St. Louis when that location became its own not-for-profit organization. Note 3 - Note Receivable In March 2016, the Foundation entered into an agreement with The Cambridge Incubator, Inc. ( CIC ) to sell the District Hall trademark and related domain name to CIC for $225,000 in exchange for a note receivable. Payments are to be made to the Foundation in five annual installments of $45,000 of which the first installment has been received in The note bears no interest. At December 31, 2016, the outstanding amount due from the sale of the trademark and related domain name is $180,

14 Notes to Financial Statements Note 4 - Related Party Transactions The Foundation works closely with CIC, a for-profit company, which has some common Board membership with the Foundation for part of CIC makes donations both in cash and space for Foundation meetings. CIC actively markets the Foundation to its customers. For the years ended December 31, 2016 and 2015, CIC provided cash donations of $207,055 and $234,743, respectively, and space donations, valued at fair value, of $32,664 and $95,500, respectively. As of December 31, 2016 and 2015, amounts payable to CIC were $0 and $245,917, respectively, which, at December 31, 2015, is net of other amounts receivable from CIC for support. These payables were for the Venture Café salaries processed through the CIC benefits system as part of its support for the Foundation in In addition, as of December 31, 2015, the Foundation owed CIC $222,031 for startup costs. These startup costs were repaid to CIC during Due to new Board member alignment in 2016, there are no longer any Board members of the Foundation from CIC and its related entities and, as such, year end balances related to CIC are included in trade receivables and payables on the accompanying statements of financial position. The Foundation has entered into a management agreement with BIC, LLC ( BIC ), a related party, and the Boston Redevelopment Authority (the BRA ) for the Foundation to manage and operate an innovation center ( District Hall ) on behalf of the BRA. District Hall also includes a restaurant which is operated by a third party, which pays rent to BIC. The agreement stipulates that rental payments received by BIC pursuant to a restaurant lease shall be paid to the Foundation. Rental payments received by the Foundation for the years ended December 31, 2016 and 2015 were $72,975 and $69,500, respectively. The restaurant lease agreement provides for annual rental payments of $75,000 through $125,100 until September 2023 therefore the Foundation records rental revenue on a straightline basis. For the years ended December 31, 2016 and 2015, adjustments for straight-line rental revenue were $24,875 and $28,350, respectively. Approximate future annual restaurant rental revenue payments to be received for the years ending December 31 are as follows: 2017 $ 83, , , , ,100 Thereafter 219,200 $ 744,000 Additionally, the Foundation recorded $21,847 in additional rental revenue associated with certain breakpoint sales achieved by BIC in accordance with the rental agreement. Furthermore, the Foundation and BIC have entered into a management fee sharing agreement whereby BIC and the Foundation are each entitled to 50% of the management fee associated with operating District Hall. For the years ended December 31, 2016 and 2015, the Foundation earned $50,000 under its agreement with BIC and incurred a program fee of $100,000 relating to the operation of District Hall. As of December 31, 2015, amounts due from BIC were $61,875, which is net of other amounts payable to BIC. As of December 31, 2016, amounts owed to BIC were $60,249 related to management fee expense for District Hall operations. 12

15 Notes to Financial Statements Note 4 - Related Party Transactions (Continued) Due to new Board member alignment in 2016, there are no longer any Board members of the Foundation from BIC and its related entities and, as such, year end balances related to BIC are included in trade receivables and payables on the accompanying statements of financial position. Note 5 - Concentrations For the years ended December 31, 2016 and 2015, approximately 57% and 82%, respectively, of the Foundation s donations were from CIC. These donations were approximately 13% and 19% of total revenue for the years ended December 31, 2016 and 2015, respectively. For the year ended December 31, 2016, approximately 29% of the Foundation s donations were from two other donors. For the years ended December 31, 2016 and 2015, four and three grantors, respectively, accounted for approximately 90% and 100%, respectively, of the Foundation s grant revenue. For the years ended December 31, 2016 and 2015, three sponsors accounted for approximately 81% and 49%, respectively, of the sponsorship revenue. As of December 31, 2016 and 2015, three customers accounted for approximately 86% and 75%, respectively, of the outstanding accounts receivable balance. Note 6 - Commitments and Contingencies As part of a Payment in Lieu of Taxes (PILOT) agreement with the City of Boston for operating District Hall, Venture Café Foundation pays the City of Boston 20% of annual room rental revenue that is non-innovation related activities. Room rentals that are related to innovation uses are not subject to the PILOT payment. For the years ended December 31, 2016 and 2015, the Foundation recorded approximately $15,000 and 34,900, respectively, in PILOT expense. In connection with the management agreement with BIC and the BRA, the Foundation must pay the BRA 15% of annual District Hall net operating income, as defined in the agreement, up to $490,000. The Foundation must pay BIC 3.75% of annual District Hall net operating income, as defined in the agreement, up to $75,000 until the BRA fee is paid off, at which time BIC will receive 5% of net operating income, as defined in the agreement. As of December 31, 2016 and 2015, the Foundation owed approximately $51,300 and $20,700, respectively, to BIC and BRA, which is included in accounts payable and accrued expenses on the accompanying statements of financial position. In May 2015, the Foundation entered into a lease agreement for 3,350 square feet of office space in order to launch its new Roxbury Innovation Center program to support its mission. Rental payments commenced in 2016 and are based on 20% of room rental and program income paid to the Foundation, calculated quarterly and subject to annual maximums from $30,150 to $32,000 over the life of the lease, as stipulated in the lease agreement. The term of the lease is five years with an option for a five year extension. Rent expense related to this space was approximately $8,400 for the year ended December 31, In May 2016, the Foundation entered into a licensing agreement with the CIC Venture Café Global Institute, a related public benefit corporation through common board membership at the time of the transaction, for the use of the Venture Café name. The annual licensing fee is equal to 40,000 Euros, which equaled $46,000 U.S. dollars for the year ended December 31, 2016, but will be adjusted in future years depending on the activity of the CIC Venture Café Global Institute. The Foundation can cancel the license agreement with a 120 day notice. 13

16 Notes to Financial Statements Note 7 - Employee Benefit Plan Effective January 1, 2016, the Foundation sponsors a 401(k) plan for eligible employees, as defined by the plan document. Each participant may elect to contribute up to ninety percent (90%) of his or her compensation to the 401(k) plan, subject to certain Internal Revenue Service limitations. The Foundation matches 100% of the 3% of employee compensation and 50% of the next 2% of employee compensation (for a total of up to 4%). Prior to January 1, 2016, the Foundation s employees received benefits through the CIC employee benefit plan and expenses were contributed to the Foundation with the related expenses being charged to operations of the Foundation. The Foundation s 401(k) plan contributions for the years ended December 31, 2016 and 2015 were approximately $7,000 and $7,600, respectively. Note 8 - Contribution to Venture Café St. Louis Beginning on January 1, 2016, Venture Café St. Louis became its own not-for-profit entity with its own financial reporting. In 2016, Venture Café Foundation transferred the net assets and liabilities of Venture Café St. Louis to that entity totaling approximately $76,000 consisting of cash, receivables and property and equipment. At December 31, 2015, this amount was reflected as contribution payable on the accompanying statements of financial position. All amounts owed to Venture Café St. Louis were transferred during 2016, with minor adjustments to the amount accrued in prior year as certain amounts were being settled between the entities. Note 9 - Gain on Sale of Trademark In connection with the March 2016 sale of the District Hall trademark and related domain (see Note 3), the Foundation recorded a gain of $225,000 as a non-operating gain in the statements of activities and changes in net assets for the year ended December 31, There were minimal costs associated with the trademark which had not been previously capitalized. 14

17 Supplementary Information

18 Independent Auditors Report on Supplementary Information Board of Directors Venture Café Foundation, Inc. Cambridge, Massachusetts We have audited the financial statements of Venture Café Foundation, Inc. (the Foundation ) as of and for the years ended December 31, 2016 and 2015, and our report thereon dated December 1, 2017, which expressed an unmodified opinion on those financial statements, appears on page 1. Our audits were performed for the purpose of forming an opinion on the financial statements as a whole. The accompanying Supplemental Schedules of District Hall Activities and Changes in Net Assets are presented for the purpose of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. December 1, 2017 Boston, Massachusetts 15

19 Supplemental Schedules of District Hall Activities and Changes in Net Assets Years Ended December 31, Temporarily Permanently Unrestricted Restricted Restricted Total Total Revenues: Grants $ - $ 34,842 $ - $ 34,842 $ 69,997 Sponsorships 109, , ,912 Room rental 614, , ,091 Donations ,204 Restaurant revenues 119, ,697 97,850 Other Net assets released from restrictions 34,842 (34,842) Total revenue 879, , ,054 Expenses: Program expenses 765, , ,106 Total operating expenses 765, , ,106 Non-operating activities: Gain on sale of trademark 225, ,000 - Change in net assets of District Hall Program* 338, , ,948 Change in net assets of all other Venture Café Foundation activities 88,086 (118,294) - (30,208) (342,157) Total change in net assets $ 426,893 $ (118,294) $ - $ 308,599 $ (35,209) *Excludes activities of the Boston Innovation Center, LLC, a separate entity. See Independent Auditors' Report on Supplementary Information. 16

20 Supplemental Schedule of District Hall Activities and Changes in Net Assets Year Ended December 31, 2015 Temporarily Permanently Unrestricted Restricted Restricted Total Revenues: Grants $ 69,997 $ - $ - $ 69,997 Sponsorships 144, ,912 Room rental 559, ,091 Donations 64, ,204 Restaurant revenues 97, ,850 Net assets released from restrictions Total revenue 936, ,054 Expenses: Program expenses 629, ,106 Total operating expenses 629, ,106 Change in net assets of District Hall Program* 306, ,948 Change in net assets of all other Venture Café Foundation activities (160,611) (181,546) - (342,157) Total change in net assets $ 146,337 $ (181,546) $ - $ (35,209) *Excludes activities of the Boston Innovation Center, LLC, a separate entity. See Independent Auditors' Report on Supplementary Information. 17