2025-02-07T06:42:37-05:00 2024-09-30 PWC US TAX LLP 655 NEW YORK AVE NW SUITE 1100 WASHINGTON DC 20001 990 2023-10-01 201806718 AUBURN RESEARCH & TECHNOLOGY FOUNDATION % MELANIE WRIGHT AUBU 3348447480 570 DEVALL DRIVE SUITE 101 AUBURN AL 36832 DR STEVEN TAYLOR ARTF PRESIDENT 3348444623 2025-02-15 true TRAVIS L PATTON P00369623 2054144000 2025-02-03 2023 2025-03-06 01:10:19Z DR STEVEN TAYLOR 570 DEVALL DRIVE SUITE 101 AUBURN AL 36832 2199801 false X N/A X 2004 AL ORGANIZED TO HELP DEVELOP AND OPERATE THE AUBURN RESEARCH PARK AND TO ASSIST WITH THE ATTRACTION, DEVELOPMENT, AND COMMERCIALIZATION OF TECHNOLOGY. 17 11 0 0 55632 45188 120 82433 27375 33036 1854230 2039144 1937357 2199801 83062 11288 0 0 0 0 0 0 0 1673823 1737050 1756885 1748338 180472 451463 15401521 15473113 2522320 2301413 12879201 13171700 X THE AUBURN RESEARCH AND TECHNOLOGY FOUNDATION IS AN INDEPENDENT ALABAMA NONPROFIT CORPORATION ORGANIZED ON AUGUST 24, 2004 TO DEVELOP AND OPERATE THE AUBURN RESEARCH PARK AND TO ASSIST AUBURN UNIVERSITY WITH THE ATTRACTION, DEVELOPMENT AND COMMERCIALIZATION OF TECHNOLOGY. false false 11288 During previous years, ARTF applied for and received a $225,000 grant from Alabama Power for the LAUNCH Innovation Grant Program which provides funding for near commercialization technologies and inventions to become market ready. After a multi-stage compeition, the Foundation awarded $100,000 to a faculty research project. The project is for a working prototype of dry printing and additive nanomanufacturing technology that could enable: 1. On-demand and in-situ generation of various pure nanoparticles (e.g., metals, insulators, semiconductors, superconductors, ceramics, composites, etc.), 2. In-situ and real-time laser sintering of dry nanoparticles jet on various substrates (polyamide, PET, PDMS, paper, metal, ceramic, etc.), with no further post-processing. The remaining $125,000 is restricted for awards to LAUNCH winners in fiscal year 2024 and beyond. In 2024, ARTF distributed $11,288 of the $125,000 restricted in prior years. 3959 36550 ARTF operates an Event Center space for community use. 101539 215601 ARTF leases building within the Research Park as a childcare center for community benefit. 82433 Design & Fabrication of Entangled Microwave Photo 82433 116786 true false false false false false false false false false true false false false true false false true false false false false false false false false false true false true false false false false false false false false false false false false false true false true false true 7 0 true 0 false false false false false false false false false false false false false false false false false X 17 11 false false false false false true false true false false false true true true true true true false false false AL X MELANIE WRIGHT 3348446537 570 DEVALL DRIVE STE 101 AUBURN AL 36832 CHRISTOPHER ROBERTS BOARD MEMBER, Ex Officio 1.0 0.0 X 0 767763 110266 VINI NATHAN BOARD MEMBER 1.0 0.0 X 0 506585 63696 STEVEN TAYLOR PRESIDENT 1.0 0.0 X X 0 421469 58815 BILL DEAN EXEC. DIRECTOR RET. 10/31/23 1.0 0.0 X 0 448152 23342 PAUL PATTERSON BOARD MEMBER 1.0 0.0 X 0 338175 52920 CARY CHANDLER SENIOR DIRECTOR RET. 03/29/24 1.0 0.0 X 0 161308 32413 JAMES H SANFORD CHAIRMAN 1.0 0.0 X X 0 0 0 ROBERT W DUMAS BOARD MEMBER 1.0 0.0 X 0 0 0 BILL HAM JR SECRETARY 1.0 0.0 X X 0 0 0 DAVID R THRASHER BOARD MEMBER 1.0 0.0 X 0 0 0 CHRIS CRUMBLY BOARD MEMBER 1.0 0.0 X 0 0 0 GREG BARKER BOARD MEMBER 1.0 0.0 X 0 0 0 THOMAS GOSSOM JR BOARD MEMBER 1.0 0.0 X 0 0 0 PATRICK MURPHY BOARD MEMBER 1.0 0.0 X 0 0 0 JOHN ROCOVICH JR BOARD MEMBER 1.0 0.0 X 0 0 0 RON ANDERS BOARD MEMBER 1.0 0.0 X 0 0 0 LAURA GRILL BOARD MEMBER 1.0 0.0 X 0 0 0 HORACE HORN BOARD MEMBER 1.0 0.0 X 0 0 0 JOHN SMOLA BOARD MEMBER 1.0 0.0 X 0 0 0 MICHEAL DEMAIORIBUS BOARD MEMBER 1.0 0.0 X 0 0 0 0 2643452 341452 0 true true false 0 45188 45188 CONTRACT REVENUE 541610 82433 82433 82433 33036 33036 0 0 2051564 2051564 0 2051564 334584 1716980 0 0 0 0 0 0 0 0 0 0 OTHER INCOME -12420 -12420 -12420 2199801 334584 1820029 11288 11288 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 278717 278717 29686 29686 10673 1650 9023 0 0 190602 190602 3871 3871 0 0 458879 93365 365514 0 493525 8174 485351 83598 83598 REPAIRS AND MAINTENANCE 133268 2138 131130 OTHER EXPENSES 43383 171 43212 0 RENT EXPENSE 10848 0 10848 1748338 116786 1631552 0 2717932 3327257 0 0 1479534 1402071 2375877 2552826 0 0 0 0 0 0 0 0 0 0 13021205 4900980 8486482 8120225 0 0 0 0 0 0 0 0 341696 70734 15401521 15473113 28539 62617 0 0 27978 17099 0 0 0 0 0 0 1672703 1481704 490046 437334 303054 302659 2522320 2301413 X 11399626 11769588 1479575 1402112 12879201 13171700 15401521 15473113 X 451463 -158964 X false true X true false X X X 1 AUBURN UNIVERSITY 636000724 5 true 0 0 1 0 0 true false false false false false false false false false false false false false false true true false X SCHEDULE A, PART IV, SECTION D, LINE 2, 3 & SECTION E, LINE 1C Although the Foundation is separate and independent from the University, its mission is to facilitate the acquisition, construction and equipping of a technology and research park on the University's campus in order to create new academic and entrepreneurial opportunities for the University's faculty and students. Consideration received by the University from the Foundation includes the traditional benefits enjoyed by a University from an affiliated research park, including but not limited to, increased exposure for development and commercialization of the University's intellectual property and technologies, increased research opportunities for the University's students and professors, and heightened exposure within the commercial world of the technological campus offerings. Auburn University's Senior Vice President for Research and Economic Development serves as President of the Foundation. The President is a member of the Foundation Board with full voting powers. Contributed services in the amount of approximately $155,444 and $105,631 were recognized by the Foundation during fiscal years 2024 and 2023, respectively, related to services provided by the individual serving as the President of the Foundation. The Foundation Board includes members who are also members of the VCOM Board of Directors, University Board of Trustees as well as other University employees. A banking relationship exists between the Foundation and a financial institution whose chairman is a member of the Foundation Board and the University's Board of Trustees. Additionally, a board member and the spouse of another board member is also on the board of River Bank & Trust where the loan for Building 7, Building 5 and the furniture loan were obtained. The Foundation and the University entered into an Operating Agreement (the Agreement), which governs the general and administrative and development financial relationships between these two entities. In summary, the Agreement states that in return for certain services and facilities that are within the capability and control of the University, the Foundation will reimburse the University for the cost of such services and facilities. The Foundation makes an annual determination of its allocable share of these costs and records the transaction. As discussed below, unpaid amounts at September 30 are included in "Other payable to Auburn University" on the Statements of Consolidated Financial Position. The Foundation and the University review the Agreement annually and provide an estimate of the maximum consideration to be paid for the upcoming year for approval by the respective boards. The University did not charge the Foundation for any personnel costs in fiscal years 2024 and 2023. Personnel costs incurred by the University and not reimbursed by the Foundation were $1,252,277 and $1,236,659 in fiscal years 2024 and 2023, respectively. These costs are reflected in the Foundation's financial statements as general and administrative expense and as corresponding contribution revenue without donor restrictions. The Foundation entered into subcontracts with the University to provide services to fulfill the Foundation's sponsored project agreements. The University provides certain operating services to the Foundation. As of September 30, 2024 and 2023, the Foundation owed the University $31,488 and $28,988, respectively, related to these services. All amounts owed to the University are shown in "Other payables to Auburn University" on the Statements of Consolidated Financial Position. The amounts due from the University to the Foundation of $27,269 and $97,849 at September 30, 2024 and 2023, respectively primarily relate to deferred rent associated with long term leases between the University and the Foundation. These amounts are included in "Accounts Receivable"Deferred rent asset" on the Statements of Consolidated Financial Position. The Foundation held lease agreements with ten university departments in fiscal year 2024, whereby the departments leased office space from the Foundation. As leasing tenants, the University departments remit a monthly rental fee to the Foundation in accordance with their lease agreements. ARTF recognized rental income of $859,147 and $744,345 from the University during fiscal years ended September 30, 2024 and 2023, respectively. On September 16, 2020, the Foundation entered into a thirty-year lease agreement to lease space inside Building 5, owned by ARPI. ARTF operates an event center and is the sublessor of caf space inside the new building. Intercompany rental revenue and rental expenses totaled $336,013 and $359,109 in fiscal years 2024 and 2023, respectively. Intercompany rental revenue and rental expenses is eliminated during consolidation. 12310283 4212801 8097482 38768 31396 7372 672154 656783 15371 8120225 0 INTEREST PAYABLE 110786 PAYABLE TO AUBURN UNIVERSITY 31488 DEPOSITS 16240 DUE TO ARPI 10054 CAPITAL LEASE OBLIGATION 13153 INTERCOMPANY PAYABLE 120938 302659 6928181 1407721 3320659 4728380 2199801 2199801 6418044 1407721 3261985 4669706 1748338 1748338 OTHER REVENUE AND EXPENSES INCLUDED IN FINANCIAL STATEMENTS BUT NOT ON 990 ARTF IS INCLUDED IN CONSOLIDATED, INDEPENDENT AUDITIED FINANCIAL STATEMENTS FOR THE TAX YEAR. INCOME AND EXPENSES NOT REPORTED ON ARTF'S 990 ARE REPORTED ON A SEPERATE 990 FILED FOR AUBURN RESEARCH PARK I (EIN: 83-3566518). true Auburn University Samuel Ginn College of Engineeri Dept of Chemical Engineering c/o X 212 Ross Hall Auburn AL 36849 501(c)(3) 11288 In support of research efforts to manufacture low-cost, long-lasting catalyst membranes for use in green hydrogen production. 1 1 Schedule I, Part IV In previous years, ARTF applied for and received a $225,000 grant from Alabama Power for the LAUNCH Innovation Grant Program which provides funding for near commercialization technologies and inventions to become market ready. After a multi-stage competition, the Foundation awarded $100,000 to a faculty research project. The project is for a working prototype of dry printing and additive nanomanufacturing technology that could enable: 1. On-demand and in-situ generation of various pure nanoparticles (e.g., metals, insulators, semiconductors, superconductors, ceramics, composites, etc.), 2. In-situ and real-time laser sintering of dry nanoparticles jet on various substrates (polyamide, PET, PDMS, paper, metal, ceramic, etc.), with no further post-processing. The remaining $125,000 is restricted for awards to LAUNCH winners in fiscal year 2024 and beyond. ARTF monitors progress toward milestones and awards money in increments as those are achieved. In 2024, ARTF distributed $11,288 of the $125,000 restricted in prior years. false false false false false false false false false CHRISTOPHER ROBERTS BOARD MEMBER, Ex Officio 767763 110266 878029 VINI NATHAN BOARD MEMBER 506585 63696 570281 BILL DEAN EXEC. DIRECTOR RET. 10/31/23 448152 23342 471494 CARY CHANDLER SENIOR DIRECTOR RET. 03/29/24 161308 32413 193721 PAUL PATTERSON BOARD MEMBER 338175 52920 391095 STEVEN TAYLOR PRESIDENT 421469 58815 480284 PART III PROGRAM SERVICE ACCOMPLISHMENTS The Auburn Research and Technology Foundation (the Foundation) is an independent Alabama nonprofit corporation organized on August 24, 2004, to develop and operate the Auburn Research Park and to support Auburn University (the University) with the attraction, development, and commercialization of technology. The Foundation's activities are governed by its own Board of Directors (the Foundation Board). The primary role of the Foundation is the development and operation of the Auburn Research Park (The Park). The Park is the result of a partnership between the State of Alabama (the State), the University, and the City of Auburn which contributed $5,000,000 in-kind infrastructure improvements to The Park property. The Park currently consists of seven buildings comprising almost 500,000 square feet of scientific and mixed-use facilities. It seeks to establish an entrepreneurial atmosphere in a business and research environment which fosters creativity and innovation, and embraces collaboration, partnerships, and networking that leads to economic diversification and enhanced economic vitality of the University and the local community, state, and region. On March 1, 2007, for the purpose of making loans and advances, the Board entered into an agreement to lease the site for Building 570 from the University. The Board paid annual rent of $10 to the University under the terms of the lease. The ground lease agreement had an expiration date of January 1, 2025; however, the agreement was terminated on October 8, 2010, the time all obligations due to the Board by the Foundation were paid in full. At that time, the University entered into an agreement with the Foundation where the Foundation leases the site for Building 570 from the University. The Foundation pays annual rental of $1 to the University under the terms of this ground lease. The ground lease agreement expires on March 15, 2057, unless terminated prior to that date. These transactions represent an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable for the difference between the fair rental values of the property, initially calculated using a 7% discount rate, and the stated amount of the lease payments. At the formation of the original lease, the contribution receivable booked was $302,878, net of a discount of $251,740. During fiscal 2011, the interest rate was reevaluated and changed to 5%, and the lease period was extended. An additional contribution receivable of $589,790 and discount of $401,121 were booked in fiscal 2011. An adjustment to the contribution receivable was made in fiscal 2016 to increase total acreage from the original 156 acres to 170.43 acres to include the VCOM acreage (discussed below) in the calculation. As of September 30, 2023, the Foundation has active ground leases comprising approximately 41.34 acres. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $21,243 during fiscal years 2024 and 2023. The discount is amortized using the effective interest method. Amortization of the discount was $10,514 and $9,977 during fiscal 2024 and 2023, respectively. On August 30, 2012, the Foundation signed an agreement with the Edward Via College of Osteopathic Medicine (VCOM) in Blacksburg, VA to establish a branch campus to be located within the research park. The Foundation entered into an agreement to lease the site for VCOM from the University on August 9, 2013. The Foundation pays annual rent of $1 to the University under the terms of the lease. The ground lease agreement expires on June 30, 2085, unless terminated prior to that date. This transaction represents an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable in fiscal 2013 for the difference between the fair rental values of the property, calculated using a 5% discount rate, and the stated amount of the lease payments. At the formation of the lease, the contribution receivable booked was $3,035,051, net of a discount of $2,281,201. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $42,812 during fiscal years 2024 and 2023. The discount is amortized using the effective interest method. Amortization of the discount was $18,973 and $17,781 during fiscal years 2024 and 2023, respectively. On June 12, 2018, for the purpose of constructing Building 7, the Foundation entered into an agreement to lease the site from the University. The Foundation paid annual rent of $1 to the University under the terms of the lease. The ground lease agreement expires on June 12, 2068, unless terminated prior to that date. This transaction represents an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable in fiscal 2019 for the difference between the fair rental values of the property, calculated using a 5% discount rate, and the stated amount of the lease payments. At the formation of the lease, the contribution receivable booked was $1,168,950, net of a discount of $756,344. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $23,379 during fiscal years 2024 and 2023. The discount is amortized using the effective interest method. Amortization of the discount was $6,764 and $5,933 during fiscal years 2024 and 2023, respectively. On March 15, 2019, for the purpose of constructing Building 5, the Foundation entered into an agreement to lease the site from the University. The Foundation paid annual rent of $1 to the University under the terms of the lease. The ground lease agreement expires on March 15, 2068, unless terminated prior to that date. This transaction represents an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable in fiscal 2019 for the difference between the fair rental values of the property, calculated using a 5% discount rate, and the stated amount of the lease payments. At the formation of the lease, the contribution receivable booked was $760,513, net of a discount of $468,846. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $16,822 during fiscal years 2024 and 2023. The discount is amortized using the effective interest method. Amortization of the discount was $4,269 and $3,642 during fiscal years 2024 and 2023, respectively. On January 31, 2019, for the purpose of constructing Building 6, the Foundation entered into an agreement to lease the site from the University. Also on January 31, 2019, the Foundation signed an agreement with the East Alabama Health Care Authority in Opelika, AL to establish a medical building to be located on this land. The building was completed and began operations in fiscal 2021. The Foundation paid annual rent of $1 to the University under the terms of the lease. The ground lease agreement expires on December 31, 2117, unless terminated prior to that date. This transaction represents an unconditional promise of the use of a long-lived asset, the leased land. Since the rental payments are below the fair market value of the property, the Foundation recorded a contribution receivable in fiscal 2019 for the difference between the fair rental values of the property, calculated using a 5% discount rate, and the stated amount of the lease payments. At the formation of the lease, the contribution receivable booked was $1,801,214, net of a discount of $1,437,797. The offsetting contribution receivable is amortized using the straight-line method over the life of the lease. Amortization related to the lease was $18,395 during fiscal years 2024 and 2023. The discount is amortized using the effective interest method. Amortization of the discount was $4,668 and $3,982 during fiscal years 2024 and 2023, respectively. PART VI, SECTION B, LINE 11B 990 is reviewed by key members of management. PART VI, SECTION B, LINE 12C ALL CONFLICTS OF INTEREST OR APPARENT CONFLICTS OF INTEREST OF DIRECTORS ARE TO BE DISCLOSED TO THE CHAIRPERSON OF THE BOARD AND THE EXECUTIVE DIRECTOR. CONFLICTS OR APPARENT CONFLICTS OF ALL OTHERS ACTING FOR OR ON BEHALF OF THE ARTF ARE TO BE DISCLOSED TO THE EXECUTIVE DIRECTOR. VIOLATIONS OF THE POLICY, INCLUDING FAILURE TO DISCLOSE CONFLICTS, MAY RESULT IN TERMINATION OF THE CONFLICTED PERSON. PART VI, SECTION A, LINE 8B THE FOUNDATION DID NOT HAVE ANY COMMITTEES WITH THE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. PART VI, SECTION C, LINE 19 AUBURN RESEARCH AND TECHNOLOGY FOUNDATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST. PART XI, LINE 9 Consolidation adjustment pushed down to ARTF FORM 990 PART IX LINE 11G DESCRIPTION:ACCOUNTING & AUDIT TOTAL FEES:93450 FORM 990 PART IX LINE 11G DESCRIPTION:LEGAL TOTAL FEES:76381 FORM 990 PART IX LINE 11G DESCRIPTION:GOVERNMENT SERVICES FEE TOTAL FEES:46500 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER FEES FOR SERVICES TOTAL FEES:33936 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING TOTAL FEES:28450 AUBURN UNIVERSITY AUBURN UNIVERSITY AUBURN AL 36849 636000724 PUBLIC UNIV. AL 115 2 NA false AUBURN RESEARCH PARK I 570 DEVALL DRIVE STE 101 AUBURN AL 36832 833566518 Supporting Or AL 501(c)(3) ARTF true false false false true true false false false false true true false false true true false false true true Auburn University d 437334 Note Payable Auburn Research Park I e 7082000 Note Receivable Auburn University j 859147 Rental Income Auburn Research Park I k 336013 Rent Expense Auburn University o 1407721 Personnel Costs