Balancing Science, Education and Biotechnology 2019 Report from the President FROM THE PRESIDENT Dear Friends, Here are some of our My challenge when I assumed the presidency of the MDI Biological accomplishments in Laboratory in 2018 was to chart a new course while maintaining a our areas of focus over connection with a scientific history that includes groundbreaking discoveries in fields ranging from oncology to kidney disease. the past year: We are accomplishing this by strengthening the pillars – faculty, visiting scientists, education and biotechnology – that define the institution. • Faculty – Iain A. Drummond, Ph.D., will assume the position of senior scientist in September. Today, our scientists are identifying the regulatory mechanisms that He is currently associated with Harvard are critical to regeneration, which may help replace organs like the Medical School, Massachusetts General heart and kidney when they fail. They are also unraveling the secrets Hospital and the Harvard Stem Cell Institute. of longevity through their research on the cellular and molecular As senior scientist, he will provide the networks that govern aging. expertise, guidance and inspiration required At the same time, we are growing our education program and to build a critical mass of skilled faculty. translating science into cures through biotechnology. This progress is helping us realize our mission of educating the next generation of • Visiting scientist program – The summer scientists and transforming medicine through scientific discovery. visiting scientist program will be reinvigorated with the arrival of 15 investigators, four of We depend on the support of you, our donors, to advance our whom are members of the federally funded mission and thank you for all you have done to help us realize (Re)Building a Kidney (RBK) consortium, our goals. whose goal is to develop replacement kidney tissue. As the visiting scientist program grows, The theme uniting these pillars is the sharing of knowledge. While we look forward to becoming a center of RBK our distinguished legacy, beautiful setting and state-of-the-art collaborations. facilities all play a role in the discoveries that are being made here, it is the lively and robust exchange of ideas that makes the MDI • Education – We will explore a new way of Biological Laboratory what it is. looking at aging with a summer course and Like any structure, the pillars of an institution must rest on a firm follow-up fall symposium focused on the foundation. It is loyal supporters like you, who are committed to our interface between regeneration and aging. In vision, who make up the bedrock of that foundation. their cutting-edge approach and global appeal, these events will serve as templates for the We thank you for your generous support and invite you to join us series of “Acadia conferences” planned for on the exciting journey that lies ahead. 2020 and beyond. •Biotechnology – We have already made With heartfelt gratitude, major contributions to the development of a robust science and technology sector in Maine through the establishment of the Maine Center for Biomedical Innovation and our role as an incubator for life sciences startups. Our Hermann Haller, M.D. plan is now to grow our incubator by adding President new life sciences companies. 2 | 2019 REPORT FROM THE PRESIDENT TOGETHER our research and science education programs made a major impact in 2018. Thank you for being a partner in this critically important work. citizen scientists from countries $ 12.3M in federal grants received students faculty members and their research teams engaged in leading-edge regenerative medicine and aging research 3 | 2019 REPORT FROM THE PRESIDENT 2018 OPERATING EXPENSES AND FUNDING SOURCES (excluding depreciation) Operating Expenses Funding Sources 6% Unrestricted Contributions Fundraising 3% 8% Foundations & Other Grants Management & General 20% 11% Reserves & Endowment 12% Program Fees & Other Income Educational Programs 23% 22% Federal Funding for Research Subawards Research 54% 41% Federal Grants & Contracts STATEMENT OF FINANCIAL POSITION December 31, 2018 ASSETS 2018 LIABILITIES & NET ASSETS 2018 Cash & Cash Equivalents 3,013,515 Liabilities Certificates of Deposit 4,832,443 Accounts Payable & Accrued Expenses 1,218,982 Receivables - Grants & Programs 1,263,202 Revenues & Grants Received in Advance 733,089 Receivables - Contributions & Pledges 742,642 Charitable Gift Annuities 6,519 Investments 6,573,404 Bonds Payable, net issuance costs 3,929,413 Land, Buildings & Equipment (net) 13,266,957 Total Liabilities 5,888,003 Total Assets 29,692,163 Net Assets Without Donor Restrictions 17,136,496 With Donor Restrictions 6,667,664 Total Net Assets 23,804,160 Total Liabilities & Net Assets 29,692,163 4 | 2019 REPORT FROM THE PRESIDENT STATEMENT OF ACTIVITIES December 31, 2018 OPERATING ACTIVITIES Without Donor With Donor Total Restrictions Restrictions Operating Support & Revenue Government Grants & Contracts 7,314,484 7,314,484 Contributions & Private Grants 1,467,715 582,245 2,049,960 Fees for Programs & Services 1,286,008 1,286,008 Investment Return Utilized 214,960 214,960 Interest & Other Income 103,633 7,018 110,651 Assets Released to Support Operations 14,375 (14,375) 0 Total Operating Support & Revenue 10,401,175 574,888 10,976,063 Operating Expenses Research 6,853,318 6,853,318 Educational Programs 2,977,113 2,977,113 Management & General 2,394,819 2,394,819 Fundraising 404,590 404,590 Total Operating Expenses 12,629,840 0 12,629,840 Change in Net Assets from Operating Activities (2,228,665) 574,888 (1,653,777) NON-OPERATING ACTIVITIES Grants & Contributions for Capital Purposes 59,259 27,000 86,259 Assets Released for Capital Purposes 114,411 (114,411) 0 Gain (Loss) from Disposal of Assets (35,632) (35,632) Investment Return, Net of Amount Used 4,397 (370,617) (366,220) Change in Net Assets from Non-Operating Activities 142,435 (458,028) (315,593) Total Change in Net Assets (2,086,230) 116,860 (1,969,370) Net Assets, Beginning of Year 19,222,726 6,550,804 25,773,530 Net Assets, End of Year 17,136,496 6,667,664 23,804,160 The financial statements of the MDI Biological Laboratory for the fiscal year ending December 31, 2018 were audited by HMV, LLC and are available on our website or upon request. Adjustments were made to adopt FASB accounting standard ASU 2016-14 as required on January 1, 2018, and to better reflect GAAP standards for classification of Board Designated Funds and recording internal service fees. 5 | 2019 REPORT FROM THE PRESIDENT OUR DONORS The MDI Biological Laboratory is extremely grateful to all of the donors who generously support our work. This list represents contributions made from January 1 to December 31, 2018. Every effort has been made to ensure the accuracy of our list. Our sincere apologies if any omissions or errors have occurred. $100,000+ $2,500 – $4,999 Mr. Laurence B. Flood Cotswold Foundation Trust, Cheryl M. Coffin, M.D. and Ralph E. Topham Robert and Marthe Forrester Mr. and Mrs. I. Wistar Morris III Chuck* and Megan Dinsmore Mrs. L. Gordon Hamersley, Jr. Shelby Cullom Davis Charitable Fund John W. Bristol Fund of the Maine Community Dixie Hathaway Scott R. MacKenzie Foundation Foundation, Mr. and Mrs. Stephen B. Homer Drs. Robert* and Sondra Howe The Nature Conservancy, Maine Chapter Mrs. Caroline Huber $50,000 – $99,999 TH Maren/SK Fellner Fund of the Triangle Janet Stone Jones Foundation, Anonymous (2) Community Foundation Antoinette and Benjamin Brewster Mr. Alan W. Kornberg and Mr. Harold J. Koda Daphne* and Andrew Trotter Daniel Kniaz, M.D.* Ambassador and Mrs. Philip Lader $25,000 to $49,999 $1,000 – $2,499 Alice and Michael Lilly Long Cove Foundation, Inc., Jane* and Abass Alavi Mr. and Mrs. Lennart S. Lindegren Kristin and Michael Sant Vjera Bakovic, M.D. and Patricio Silva, M.D. Joan* and Fred Mansfield Ms. Eleanor A. Robbins Mrs. Robert O. Blake Maude and John March, Jr. Josephine A. Sollano, M.P.H., Dr.PH. Phoebe and Jim Boyer Stephen and Rebecca Milliken Alex C. Walker Foundation Anne W. Boylan* and John A. Cadwallader Farhan Panthaki Richard Bullock and Carol Woolman Brian and Leanne Pellerin $10,000 – $24,999 Lura* and Bill Clark Mr. and Mrs. R. Anderson Pew Peter J. Allen, M.D. and Ms. Sarah M. Hodder Design Group Collaborative, LLC Dr. and Mrs. Richard Pierson Dr. Edward J. Benz, Jr. and Dr. Margaret A. Vettese Sherrie S. Epstein Dr. Jerome G. Porush Dr. Thomas A. Boyd* and Mrs. Judith Boyd Mr. and Mrs. William G. Foulke, Jr. Mr. Marc A. Puntereri Phoebe C. Boyer* and Todd R. Snyder The Ganlee Fund Rockefeller Philanthropy Advisors, Mr. Terence C. Boylan* and Ms. Illiana van Meeteren Mr. Christiaan van Heerden David and Susan Rockefeller Ms. Ruth Cserr* and Dr. Robert Savell Gerrish H. Milliken Foundation Linda Seidel Field R & V Cushman Fund of the Community Dr. Patricia Hand and Mr. Victor Hand Julie and Henry Sharpe III Foundation of Jackson Hole Mr. and Mrs. James B. Harrison Slater Fund at Fidelity Charitable, Glenn Foundation for Medical Research Mr. John A. Hays* Dr. Alice D. Murphy Mr. and Mrs. Frank L. Hohmann III Becky and Doug Heden The U.S. Charitable Gift Trust, Dr. Lewis Kinter* and Ms. Terry Timberlake-Kinter Atwater Kent Foundation, Inc. Ms. Sara W. Pierce Mr. Alan B. Miller Allan and Joan Kleinman Robert Whitman and Jeffrey Munger The New York Community Trust, Mrs. Julius R. Krevans† Richard and Linda Wright Mr. and Mrs. Edward Hoffman Dr. Betty M. Massie Nancy and George† Putnam Warren Motley and Cynthia Saltzman $250 – $499 Frank Moya, M.D. Anonymous (2) $5,000 – $9,999 Elizabeth Myers, Ph.D.* and Evan Vosburgh, M.D. Judith T.