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Letter from the Chairman Letter from the Chairman For our inaugural annual report, I am thrilled to describe the tremendous progress that eLife Sciences has achieved during its first year of operation. In June 2011, the Howard Hughes Medical Institute, the Max Planck Society, and the Wellcome Trust announced eLife Sciences – a disruptive, refreshing new model for the publishing and dissemination of cutting-edge scientific research. It is built on digital technologies, and driven by the needs of academic science, the research community, and the broader population interested in science. The mission of eLife Sciences is to establish a leading journal for the publication of advancements in the life and biomedical sciences, using active researchers to assess the science efficiently and quickly, and leveraging the power of digital media to bring the work to life and make it openly accessible in multiple dimensions to a global audience. The Board is very proud of the eLife Sciences team’s accomplishments in 2012, including the initial development and operation of the journal and the! warm and open reception from the research community. Critical to eLife Sciences’ success has been the driving force of our talented academic editorial team. Led by Editor-in-Chief Randy Schekman (University of California at Berkeley, USA), and Deputy Editors Fiona Watt (King’s College, London, UK) and Detlef Weigel (Max Planck Institute for Developmental Biology, Germany) the team has devised an open and transparent editorial process that has been welcomed by the scientific community. This process ensures that new submissions are assessed swiftly and fairly, and that the editorial feedback after peer review is focused on essential revision requests. The eLife Sciences staff, based in Cambridge, England, have also put together a leading-edge publishing platform that delivers a rich, intuitive digital content experience and was launched with eLife’s new website in December 2012. It has been eLife’s goal to quickly attract the highest calibre of content and to build a reputation for excellence in editorial standards. Given that eLife is competing with established and influential venues for the most important scientific work, this is a considerable challenge. It is, therefore, hugely gratifying that well over 100 research articles that meet our high standards of excellence have already been published mid-way through 2013. Subjects range from structural biology to human perception, from plant-predator interactions to public health, and each article is accompanied by an eLife Digest to make these stories more accessible for the broader public interested in science. eLife Sciences Publications, Ltd is a limited liability non-profit non-stock corporation incorporated in the State of Delaware, USA, with company number 5030732, and is registered in the UK with company number FC030576 and branch number BR015634 at the address Suite 203, Sheraton House, Castle Park, Cambridge CB3 0AX. It is important to remember, however, that the eLife Sciences project is about more than launching a journal. It is about exploiting the potential of a new medium to communicate and share the results of scientific research. The digital medium has had profound and widespread effects on the way we conduct our lives, and yet has had limited impact on journals and research communication in general. Indeed, this area has been severely limited by the paradigm of the printed medium and outmoded print-based business models. The eLife Sciences Board will also therefore assess the progress of the initiative in terms of how journals and publishing practices change more broadly. This Annual Report includes the audited accounts of eLife Sciences Publications Limited. Consistent with the far-reaching ambitions of the project, the founders have committed more than £15 million to its launch and development. We would like to acknowledge the important contributions to the eLife Sciences Board from two colleagues who have moved on to other positions: Sir Mark Walport, who led the W ellcome Trust for 10 years and was instrumental in the conception and early life of the project; and Elizabeth Marincola, who chaired the Board for our first year. Sir Mark is currently the UK Government’s Chief Science Advisor, and Elizabeth has become the CEO of the open-access publisher, PLOS. We wish them both well in their new endeavours. The Board could not be happier with the start that eLife Sciences has made, and we congratulate all involved, most especially the researchers who have taken part – as editors, reviewers or authors – in this unique opportunity to transform the dissemination of knowledge and stimulate scientific innovation. Toby Coppel Chairman, Board of Directors eLife Sciences To view the complete eLife Sciences 2012 Annual Report, please visit 2012.elifesciences.org. eLife Sciences Publications, Ltd Financial Statements December 31, 2012 (With Independent Auditors’ Report Thereon) eLife Sciences Publications, Ltd Financial Statements December 31, 2012 Table of Contents Page Independent Auditors’ Report 1 Balance Sheet 2 Statement of Activities 3 Statement of Functional Expenses 4 Statement of Cash Flows 5 Notes to Financial Statements 6 – 11 Independent Auditors’ Report The Board of Directors eLife Sciences Publications, Ltd: Report on the Financial Statements We have audited the accompanying financial statements of eLife Sciences Publications, Ltd, which comprise the balance sheet as of December 31, 2012, and the related statements of activities, functional expenses, and cash flows for the year 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 U.S. generally accepted accounting principles; 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 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 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. Opinion In our opinion, the financial statements referred to above present fairly in all material respects, the financial position of eLife Sciences Publications Ltd as of December 31, 2012, and the results of its operations and its cash flows for the year then ended in accordance with U.S. generally accepted accounting principles. Justin Shakespeare, Certified Public Accountant, licensed auditor State of California for and on behalf of KPMG LLP Cambridge, United Kingdom July 12, 2013 eLife Sciences Publications, Ltd Balance Sheet December 31, 2012 (In thousands) Assets 2012 Current assets: Cash and cash equivalents £ 1,874 Other current assets 202 Total current assets 2,076 Property, plant, and equipment: Machinery and equipment 22 Leasehold improvements nil 22 Less accumulated depreciation and amortization (4) Net property, plant, and equipment 18 Total assets £ 2,094 Liabilities and Net Assets Current liabilities: Trade accounts payable £ 117 Accrued expenses 431 Deferred income 549 Other liabilities 15 Total current liabilities 1,112 Net assets: Unrestricted net assets 982 Total net assets 982 Total liabilities and net assets £ 982 None of the net assets of the Company are either temporarily or permanently restricted. 2 (Continued) eLife Sciences Publications, Ltd Statement of Activities Year ended December 31, 2012 (In thousands) 2012 Revenues: Contributions £ 3,231 Other Income 1 Total revenues 3,232 Expenses: Program services: Journal expenses 1,721 Supporting services: Management and general 529 Total services expenses 2,250 Change in net assets 982 Net assets, beginning of year nil Net assets, end of year 982 All activities relate to changes in unrestricted net assets. 3 (Continued) eLife Sciences Publications, Ltd Statement of Functional Expenses Year ended December 31, 2012 (In thousands) Program services Supporting Total functional services expenses Journal expenses Management and general Salaries £ 397 89 486 Payroll taxes 36 10 46 Employee benefits 21 6 27 Occupancy 55 17 72 Editorial costs
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