The Curetivity Foundation (A Not-For-Profit Corporation) Financial Statements December 31, 2017 MAZARS USA LLP MAZARS MAZARS USA LLP IS AN INDEPENDENT MEMBER FIRM 0F MAZARS GROUP. The Curetivity Foundation (A Not-For?Pro?t Corporation) Tabte of Contents December 31, 2017 Page(s) Independent Auditors Report 1 Statement of ?nancial Position 2 Statement of Activities 3 Statement of Functional Expenses 4 Statement of Cash lows 5 Notes to t'nanctal Statements 6?8 MAZARS Independent A udiz?ors Report To the Board of Directors The Curetivity Foundation We have audited the accompanying ?nancial statements of The Curetivity Foundation (a Not-For-Pro?t Corporation), 'which comprise the statement of ?nancial position as of December 31, 2017, and the related statement of activities, functional expenses and cash ?ows for the year then ended, and the related notes to the ?nancial statements. Management?s Responsibility for the Financial Statements Management is reSponsible for the preparation and fair presentation of these ?nancial 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 these ?nancial statements that are free from material misstatement, whether due to fraud or error. Auditors? Responsibility Our reSponsibility is to express an opinion on these ?nancial statements based on our audit. We conducted our audit 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 ?nancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ?nancial statements. The procedures selected depend on the auditor?s judgment, including the assessment of the risks of material misstatement of the ?nancial 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 ?nancial 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 signi?cant accounting estimates made by management, as well as evaluating the overall presentation of the ?nancial statements. We believe that the audit evidence we have obtained is suf?cient and apprOpriate to provide a basis for our audit Opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material reSpects, the ?nancial position of The Curetivity Foundation as of December 31, 2017, and changes in its net assets and its cash ?ows for the year then ended in accordance accounting principles generally accepted in the United States of America. MW ant to? November 14, 2018 MAZARS USA LLP 135 WEST 50TH STREET - YORK, New YORK 1002c . . . 212.812.7000 FAX: 212.375.6888 GURU-L Uf- Maznns USA LLP Is AN INDEPENDENT MEMBER FIRM OF Mamas GROUP. Hams The Curetivity Foundation (A Not-For-Pro?t Corporation) Statement (fFinanciai .Pos?tion December 31, 201 7 Assets Cash and cash equivalents Total assets Unrestricted net assets The accompanying notes are an integral part of these ?nancial statements. 2 53 40,61 5 40,6 1 5 40,615 The Curetivity Foundation (A Not-For?Pro?t Corporation) Statement of Activities Year Ended December 51, 201 7 Support and revenue Special events, net of direct event expenditures of $123,551 and donated facilities and goods of $74,224 8 812,794 Contributions 120,275 Total revenue 933,069 Program expenses - St. Jude Children's Research Hospital 926,716 Supporting services Management and general 76,716 Fund raising 76,716 Total supporting services 153,431 Total expenses 1,080,147 Change in net assets (147,078) Unrestricted net assets - beginning 187,693 Unrestricted net assets - end 40,615 The accompanying notes are an integral part of these ?nancial statements. 3 The Curetivity Foundation (A Not-For-Pro?t Corporation) Statement Expenses Year Ended December 31. 201 7 PROGRAM SERVICES SUPPORTING SERVICES St. Jude Children's Management Fund Research Hospital and General Raising Total Grants 3 850,000 - - 850,000 Salaries 37,391 37,391 37,391 112,173 Payroll taxes and fringe bene?ts 3,006 3,006 3,006 9,018 Travel and entertainment 1,383 1,3 83 1,383 4,149 Insurance expense 2,356 2,356 2,356 7,068 Of?ce supplies and expense 8,462 8,462 8,462 25,386 Marketing and rebranding expense 9,787 9,787 9,787 29,360 Professional fees 14,331 14,331 14,331 42,993 926,716 76,716 76,716 1,080,147 The accompanying notes are an integral part of these ?nancial statements. 4 The Curetivity Foundation (A Not-For-Pro?t Corporation) Statement of Cash Flows Year Ended December 31, 201 7 Cash ?ows from operating activities Change in net assets and net cash used in operating activities 3 5 147,078! Net decrease in cash and cash equivalents (147,078) Cash and cash equivalents Beginning 187,693 End 40,615 The accompanying notes are an integral part of these ?nancial statements. 5 The Curetivity Foundation (A Not-For-Profit Corporation) Notes to inaneie! Statements Year Ended December 31, 201 7 1. Nature of Organization The Curetivity Foundation (A Not?For?Pro?t Corporation) (the ?Foundation?) was organized as a charitable corporation on April 19, 2007, in the state of New York. The purpose of the Foundation is to provide support for charitable, religious, scienti?c, literary, or educational purposes and to solicit, receive, maintain, and disburse funds for these purposes and for the betterment of children. In furtherance of this mission, the Foundation has provided substantial support to St. Jude Children?s Research Hospital (?St Jude?). In 2017, the Foundation contributed $850,000 to St. Jude and helped raise an additional $2,018,000 contributed directly to St. Jude by donors through various fundraising initiatives. In addition to supporting St. Jude since its inception, the Foundation has pledged $20 million to St. Jude. The nonbinding pledge was formalized November 30, 2012 when the Foundation entered into a $20 million dollar/ 10-year nonbinding commitment with St. Jude for the naming rights to The Eric Trump Foundation Surgery Intensive Care Unit Center, a new state-of-the-art medical center in Memphis, Tennessee. Through 2017, the Foundation has already donated through direct and indirect contributions almost $17 million towards their $20 million pledge to The Eric Trump Foundation Surgery Intensive Care Unit Center, which of?cially opened on February 19, 2015. Additionally, the Foundation continued to success?illy demonstrate a low expense ratio. Summary of Signi?cant Accounting Policies Basis of Accounting The ?nancial statements have been prepared on the accrual basis of accounting. Cash and Cash Equivalents The Foundation considers all highly liquid debt instruments with maturities of three months or less when purchased to be cash equivalents. During the year, the Foundation may have cash at banks in excess of FDIC-insured limits and is exposed to the credit risk resulting from this concentration of cash. At December 31, 2017, the Foundation had $643,000 of bank balances in excess of the FDIC-insured limit. Contributions The Foundation reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or a purpose restriction is accomplished, then temporarily restricted net assets are reclassi?ed to unrestricted net assets and reported in the statement of support and revenue, expenses and changes in net assets as net assets released from restrictions. However, the receipt of any restricted contributions for which restrictions expire, or are otherwise satis?ed within the period of receipt, are reported as unrestricted revenues. Unconditional promises to give are recognized as revenue when the promise is received. Unconditional promises to give that are expected to be collected within one year are recorded at fair value. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash ?ows. The discounts on these amounts are computed using risk-adjusted interest rates applicable to the years in which the promises are received. Amortization of the discounts is included in contribution revenue. Conditional promises to give are not included as support until the conditions are substantially met. The Curetivity Foundation (A Not-For-Profit Corporation) Contributed Services Some individuals volunteer their time and perform a variety of tasks that assist the Foundation with its charitable and educational programs. Donated services are reported as contribution revenue and expenses only if the services create or enhance a nonmonetary asset, or would typically need to be purchased by the organization if they had not been provided by contribution, require Specialized skills, and are provided by individuals with such specialized skills. The volunteer hours that the Foundation receives each year have not been recorded in the statement of support and revenue, expenses and changes in net assets, as they do not meet these criteria. Net Assets The net assets of the Foundation and changes therein are classi?ed and reported as follows: Unrestricted Unrestricted net assets are undesignated and available for general purposes and are used for the general activities of the Foundation. Temporarily Restricted Temporarily restricted net assets consist of resources, the use of which have been restricted by donors. The release of net assets from restrictions results from either the satisfaction of the restricted purposes speci?ed by the donors or from the passage of time. At December 31, 2017, there were no temporarily restricted net assets. Permanently Restricted Permanently restricted net assets consist of resources, the use of which have been permanently restricted by donors and the income of which is directed for Speci?c programs by the donor. At December 31, 2017, there were no permanently restricted net assets. Use of Estimates The preparation of ?nancial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the ?nancial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes The Foundation, a not-for-pro?t organization, is exempt from Federal, state, and local income taxes under Section 501(c)(3) of the Internal Revenue Code The Foundation applied for and has been granted treatment as a public charity, as authorized by Code Sections 509(a)(1) and effective April 20, 2007. Those Code sections enable the Foundation to accept donations which qualify as charitable contributions to the donor. The Foundation has adopted the Financial Accounting Standard Board?s authoritative guidance pertaining to accounting for uncertainty in income taxes. This guidance prescribes a more-likely-than-not threshold for ?nancial statement recognition and measurement of a tax position taken by the Foundation. As of December 31, 2017, the Foundation determined that it had no income tax uncertainties which would have a material effect on the ?nancial statements. The Foundation is no longer subject to Federal, state, and local income tax examinations by the tax authorities for years before December 31, 2015. The Curetivity Foundation (A ot?For?Pro?t Corporation) Functional Allocation of Expenses The costs of providing the various programs and other activities are summarized on a functional basis in the statements of support and revenue, expenses and changes in net assets. Accordingly, certain costs have been allocated among the programs and supporting services bene?ted. Related Party Transactions For the year ended December 31, 2017, the Foundation recorded approximately $129,000 in revenue from members of the Board of Directors, their family members and their related organizations. Contingency The New York Attorney General?s Charities Bureau was reviewing the practices of the Foundation in 2017. The Foundation fully cooperated with the Charities Bureau and has no reason to believe that the Charities Bureau will take any actions that could impact the assets of the Foundation. The Charities Bureau has represented that its review was a compliance action rather than an enforcement action, and the Foundation has not received any further communications with reSpect to the review since early 2018. The Foundation is not aware of any other pending or threatened claims or assessments against the Foundation. Subsequent Events and Other Matters The Foundation has evaluated subsequent events through November 14, 2018, the date the ?nancial statements were available for issuance.