Form990-PF
Click to see attachment

Department of the Treasury
Internal Revenue Service
Return of Private Foundation
or Section 4947(a)(1) Nonexempt Charitable Trust
Treated as a Private Foundation
Note. The foundation may be able to use a copy of this return to satisfy state reporting requirements.
OMB No. 1545-0052
2011
For calendar year 2011, or tax year beginning 01-01-2011 , and ending 12-31-2011
G
Check all that apply:
Name of foundation
INSITECH INC
 
% JOSEPH N MORAN CFO
Number and street (or P.O. box number if mail is not delivered to street address)356 NINTH AVENUE   Room/suite
City or town, state, and ZIP code
DOVER, NJ07801
A Employer identification number

32-0098519
B Telephone number (see page 10 of the instructions)

(973) 659-3359
C bullet
D 1. bullet
H Check type of organization:
2. bullet
I Fair market value of all assets at end
of year (from Part II, col. (c),
line 16)bullet$4,045,076J Accounting method:
 
(Part I, column (d) must be on cash basis.)
E bullet
F bullet
Part I Analysis of Revenue and Expenses (The total of amounts in columns (b), (c), and (d) may not necessarily equal the amounts in column (a) (see page 11 of the instructions).) (a) Revenue and
expenses per
books 		(b) Net investment
income 		(c) Adjusted net
income 		(d) Disbursements
for charitable
purposes
(cash basis only)
Revenue 1 Contributions, gifts, grants, etc., received (attach schedule) 0
2 Check bullet
3 Interest on savings and temporary cash investments 1,505 1,505  
4 Dividends and interest from securities......      
5a Gross rents.............. 8,402 8,402 8,402
b Net rental income or (loss) 8,402
6a Net gain or (loss) from sale of assets not on line 10  
b Gross sales price for all assets on line 6a  
7 Capital gain net income (from Part IV, line 2)... 0
8 Net short-term capital gain.........  
9 Income modifications...........  
10a Gross sales less returns and allowances  
b Less: Cost of goods sold....  
c Gross profit or (loss) (attach schedule).....    
11 Other income (attach schedule)....... Click to see attachment 1,553,200   1,553,200
12 Total. Add lines 1 through 11........ 1,563,107 9,907 1,561,602
Operating and Administrative Expenses 13 Compensation of officers, directors, trustees, etc. 666,700      
14 Other employee salaries and wages...... 243,875   36,581 207,294
15 Pension plans, employee benefits.......        
16a Legal fees (attach schedule)......... 6,415 0 962 5,453
b Accounting fees (attach schedule)....... 20,000 0 3,000 17,000
c Other professional fees (attach schedule)....        
17 Interest............... 4,682   702 3,980
18 Taxes (attach schedule) (see page 14 of the instructions) Click to see attachment 191,782   28,767 163,015
19 Depreciation (attach schedule) and depletion... Click to see attachment 12,188    
20 Occupancy.............. 54,261   8,139 46,122
21 Travel, conferences, and meetings....... 82,221   12,333 69,888
22 Printing and publications..........        
23 Other expenses (attach schedule)....... Click to see attachment 95,306   14,296 81,011
24 Total operating and administrative expenses.
Add lines 13 through 23.......... 1,377,430 0 104,780 593,763
25 Contributions, gifts, grants paid........ 400 400
26 Total expenses and disbursements. Add lines 24 and 25 1,377,830 0 104,780 594,163
27 Subtract line 26 from line 12:
a Excess of revenue over expenses and disbursements 185,277
b Net investment income (if negative, enter -0-) 9,907
c Adjusted net income (if negative, enter -0-)... 1,456,822
For Privacy Act and Paperwork Reduction Act Notice, see page 30 of the instructions.
Cat. No. 11289X Form 990-PF (2011)
Form 990-PF (2011)
Page 2
Part II Balance Sheets Attached schedules and amounts in the description column
should be for end-of-year amounts only. (See instructions.)		 Beginning of year End of year
(a) Book Value (b) Book Value (c) Fair Market Value
Assets 1 Cash—non-interest-bearing............... 114,305 45,076 45,076
2 Savings and temporary cash investments.......... 1,335 5 5
3 Accounts receivable bullet24,000
Less: allowance for doubtful accounts bullet   0 24,000 24,000
4 Pledges receivable bullet  
Less: allowance for doubtful accounts bullet        
5 Grants receivable.................      
6 Receivables due from officers, directors, trustees, and other
disqualified persons (attach schedule) (see page 15 of the
instructions)....................      
7 Other notes and loans receivable (attach schedule) bullet  
Less: allowance for doubtful accounts bullet        
8 Inventories for sale or use...............      
9 Prepaid expenses and deferred charges........... 1,467,597 1,460,456 1,460,456
10a Investments—U.S. and state government obligations (attach schedule)      
b Investments—corporate stock (attach schedule)........      
c Investments—corporate bonds (attach schedule)........      
11 Investments—land, buildings, and equipment: basis bullet  
Less: accumulated depreciation (attach schedule) bullet        
12 Investments—mortgage loans..............      
13 Investments—other (attach schedule)........... 1,920 Click to see attachment1,920 1,920
14 Land, buildings, and equipment: basis bullet78,588
Less: accumulated depreciation (attach schedule) bullet43,202 42,529 Click to see attachment35,386 35,386
15 Other assets (describe bullet) Click to see attachment2,329,733 Click to see attachment2,478,233 Click to see attachment2,478,233
16 Total assets (to be completed by all filers—see the
instructions. Also, see page 1, item I) 3,957,419 4,045,076 4,045,076
Liabilities 17 Accounts payable and accrued expenses.......... 274,953 155,373
18 Grants payable...................    
19 Deferred revenue.................. 2,469,409 2,461,007
20 Loans from officers, directors, trustees, and other disqualified persons    
21 Mortgages and other notes payable (attach schedule)...... 68,846 Click to see attachment99,208
22 Other liabilities (describe bullet)    
23 Total liabilities (add lines 17 through 22).......... 2,813,208 2,715,588
Net Assets or Fund Balances bullet
and complete lines 24 through 26 and lines 30 and 31.
24 Unrestricted.................... 1,144,211 1,329,488
25 Temporarily restricted................    
26 Permanently restricted................    
bullet
and complete lines 27 through 31.
27 Capital stock, trust principal, or current funds.........    
28 Paid-in or capital surplus, or land, bldg., and equipment fund    
29 Retained earnings, accumulated income, endowment, or other funds    
30 Total net assets or fund balances (see page 17 of the
instructions).................... 1,144,211 1,329,488
31 Total liabilities and net assets/fund balances (see page 17 of
the instructions).................. 3,957,419 4,045,076
Part III Analysis of Changes in Net Assets or Fund Balances
1 Total net assets or fund balances at beginning of year—Part II, column (a), line 30 (must agree
with end-of-year figure reported on prior year’s return)............... 1 1,144,211
2 Enter amount from Part I, line 27a..................... 2 185,277
3 Other increases not included in line 2 (itemize) bullet 3  
4 Add lines 1, 2, and 3.......................... 4 1,329,488
5 Decreases not included in line 2 (itemize) bullet 5  
6 Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 30. 6 1,329,488
Form 990-PF (2011)
Form 990-PF (2011)
Page 3
Part IV
Capital Gains and Losses for Tax on Investment Income
(a) List and describe the kind(s) of property sold (e.g., real estate,
2-story brick warehouse; or common stock, 200 shs. MLC Co.) 		(b) How acquired
P—Purchase
D—Donation 		(c) Date acquired
(mo., day, yr.) 		(d) Date sold
(mo., day, yr.)
1a
b
c
d
e
(e) Gross sales price (f) Depreciation allowed
(or allowable) 		(g) Cost or other basis
plus expense of sale 		(h) Gain or (loss)
(e) plus (f) minus (g)
a
b
c
d
e
Complete only for assets showing gain in column (h) and owned by the foundation on 12/31/69 (l) Gains (Col. (h) gain minus
col. (k), but not less than -0-) or
Losses (from col.(h))
(i) F.M.V. as of 12/31/69 (j) Adjusted basis
as of 12/31/69 		(k) Excess of col. (i)
over col. (j), if any
a
b
c
d
e
2 Capital gain net income or (net capital loss) Bracket If gain, also enter in Part I, line 7
If (loss), enter -0- in Part I, line 7		 Bracket 2  
3 Net short-term capital gain or (loss) as defined in sections 1222(5) and (6):
If gain, also enter in Part I, line 8, column (c) (see pages 13 and 17 of the instructions).
If (loss), enter -0- in Part I, line 8 . . . . . . . . . . . . . 		Bracket 3  
Part V
Qualification Under Section 4940(e) for Reduced Tax on Net Investment Income
(For optional use by domestic private foundations subject to the section 4940(a) tax on net investment income.)

If section 4940(d)(2) applies, leave this part blank.
Was the foundation liable for the section 4942 tax on the distributable amount of any year in the base period?
If “Yes,” the foundation does not qualify under section 4940(e). Do not complete this part.
1 Enter the appropriate amount in each column for each year; see page 18 of the instructions before making any entries.
(a)
Base period years Calendar
year (or tax year beginning in) 		(b)
Adjusted qualifying distributions 		(c)
Net value of noncharitable-use assets 		(d)
Distribution ratio
(col. (b) divided by col. (c))
2010 612,178 3,911,935 0.15649
2009 1,764,121 3,953,542 0.446213
2008 1,458,899 3,710,131 0.39322
2007 844,088 3,501,041 0.241096
2006      
2 Total of line 1, column (d) ...................... 2 1.237019
3 Average distribution ratio for the 5-year base period—divide the total on line 2 by 5, or by
the number of years the foundation has been in existence if less than 5 years. . . 		3 0.309255
4 Enter the net value of noncharitable-use assets for 2011 from Part X, line 5..... 4 3,978,323
5 Multiply line 4 by line 3....................... 5 1,230,316
6 Enter 1% of net investment income (1% of Part I, line 27b)........... 6 99
7 Add lines 5 and 6......................... 7 1,230,415
8 Enter qualifying distributions from Part XII, line 4.............. 8 594,163
If line 8 is equal to or greater than line 7, check the box in Part VI, line 1b, and complete that part using a 1% tax rate. See
the Part VI instructions on page 18.
Form 990-PF (2011)
Form 990-PF (2011)
Page 4
Part VI
Excise Tax Based on Investment Income (Section 4940(a), 4940(b), 4940(e), or 4948—see page 18 of the instructions)
1a Bulletand enter “N/A” on line 1. Bracket
Date of ruling or determination letter:   (attach copy of letter if necessary–see instructions)
b 1 198
hereBulletand enter 1% of Part I, line 27b...................
c All other domestic foundations enter 2% of line 27b. Exempt foreign organizations enter 4% of Part I, line 12, col. (b)
2 Tax under section 511 (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-) 2  
3 Add lines 1 and 2............................ 3 198
4 Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-). 4  
5 Tax based on investment income. Subtract line 4 from line 3. If zero or less, enter -0- ..... 5 198
6 Credits/Payments:
a 2011 estimated tax payments and 2010 overpayment credited to 2011 6a 495
b Exempt foreign organizations—tax withheld at source....... 6b
c Tax paid with application for extension of time to file (Form 8868) 6c  
d Backup withholding erroneously withheld ........... 6d  
7 Total credits and payments. Add lines 6a through 6d.............. 7 495
8 Enter any penalty for underpayment of estimated tax. if Form 2220 is attached. 8  
9 Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed.......Bullet 9  
10 Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid...Bullet 10 297
11 Enter the amount of line 10 to be: Credited to 2012 estimated taxBullet297 Refunded Bullet 11  
Part VII-A
Statements Regarding Activities
1a
During the tax year, did the foundation attempt to influence any national, state, or local legislation or did
Yes
No
it participate or intervene in any political campaign? ....................
1a
 
No
b
Did it spend more than $100 during the year (either directly or indirectly) for political purposes (see page 19 of
the instructions for definition)?............................
1b
 
No
If the answer is “Yes” to 1a or 1b, attach a detailed description of the activities and copies of any materials
published or distributed by the foundation in connection with the activities.
c
Did the foundation file Form 1120-POL for this year?.....................
1c
 
No
d
Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year:
(1) On the foundation. bullet$   (2) On foundation managers.bullet$  
e
Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed
on foundation managers.bullet$  
2
Has the foundation engaged in any activities that have not previously been reported to the IRS?.......
2
 
No
If “Yes,” attach a detailed description of the activities.
3
Has the foundation made any changes, not previously reported to the IRS, in its governing instrument, articles
of incorporation, or bylaws, or other similar instruments? If “Yes,” attach a conformed copy of the changes....
3
 
No
4a
Did the foundation have unrelated business gross income of $1,000 or more during the year?........
4a
 
No
b
If “Yes,” has it filed a tax return on Form 990-T for this year?...................
4b
 
 
5
Was there a liquidation, termination, dissolution, or substantial contraction during the year?.........
5
 
No
If “Yes,” attach the statement required by General Instruction T.
6
Are the requirements of section 508(e) (relating to sections 4941 through 4945) satisfied either:
  • By language in the governing instrument, or
  • By state legislation that effectively amends the governing instrument so that no mandatory directions
    • that conflict with the state law remain in the governing instrument?................
    6
     
    No
    7
    Did the foundation have at least $5,000 in assets at any time during the year? If “Yes,” complete Part II, col. (c), and Part XV.
    7
    Yes
     
    8a
    Enter the states to which the foundation reports or with which it is registered (see page 19 of the
    instructions)bulletNJ
    b
    If the answer is “Yes” to line 7, has the foundation furnished a copy of Form 990-PF to the Attorney
    General (or designate) of each state as required by General Instruction G? If “No,” attach explanation .
    8b
     
    No
    9
    Is the foundation claiming status as a private operating foundation within the meaning of section 4942(j)(3)
    or 4942(j)(5) for calendar year 2011 or the taxable year beginning in 2011 (see instructions for Part XIV on
    page 27)? If “Yes,” complete Part XIV..........................
    9
     
    No
    10
    Did any persons become substantial contributors during the tax year? If “Yes,” attach a schedule listing their names and addresses.
    10
     
    No
    11
    At any time during the year, did the foundation, directly or indirectly, own a controlled entity within the
    meaning of section 512(b)(13)? If "Yes," attach schedule. (see page 20 of the instructions) Click to see attachment.......
    11
    Yes
     
    12
    Did the foundation acquire a direct or indirect interest in any applicable insurance contract before August 17, 2008?
    12
     
    No
    13
    Did the foundation comply with the public inspection requirements for its annual returns and exemption application?
    13
    Yes
     
    Website addressbulletWWW.INSITECH.ORG
    14
    The books are in care ofbulletJOSEPH N MORAN CFO Telephone no.bullet (973) 659-3353
    Located atbullet356 NINTH AVENUE SUITE 101DOVERNJ ZIP+4bullet07801
    15
    Section 4947(a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041.........bullet
    and enter the amount of tax-exempt interest received or accrued during the year ......bullet
    15  
    16
    At any time during calendar year 2011, did the foundation have an interest in or a signature or other authority over
    a bank, securities, or other financial account in a foreign country? .................
    16
     
    No
    See page 20 of the instructions for exceptions and filing requirements for Form TD F 90-22.1. If "Yes", enter the name of the foreign country bullet  
    Form 990-PF (2011)
    Form 990-PF (2011)
    Page 5
    Part VII-B
    Statements Regarding Activities for Which Form 4720 May Be Required
    File Form 4720 if any item is checked in the “Yes” column, unless an exception applies.
    Yes
    No
    1a
    During the year did the foundation (either directly or indirectly):
    (1) Engage in the sale or exchange, or leasing of property with a disqualified person?
    (2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from)
    a disqualified person?.........................
    (3) Furnish goods, services, or facilities to (or accept them from) a disqualified person?
    (4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person?
    (5) Transfer any income or assets to a disqualified person (or make any of either available
    for the benefit or use of a disqualified person)?.................
    (6) Agree to pay money or property to a government official? (Exception. Check “No”
    if the foundation agreed to make a grant to or to employ the official for a period
    after termination of government service, if terminating within 90 days.).........
    b
    If any answer is “Yes” to 1a(1)–(6), did any of the acts fail to qualify under the exceptions described in Regulations
    section 53.4941(d)-3 or in a current notice regarding disaster assistance (see page 20 of the instructions)?...
    1b
     
     
    .........bullet
    c
    Did the foundation engage in a prior year in any of the acts described in 1a, other than excepted acts,
    that were not corrected before the first day of the tax year beginning in 2011?.............
    1c
     
    No
    2
    Taxes on failure to distribute income (section 4942) (does not apply for years the foundation was a private
    operating foundation defined in section 4942(j)(3) or 4942(j)(5)):
    a
    At the end of tax year 2011, did the foundation have any undistributed income (lines 6d
    and 6e, Part XIII) for tax year(s) beginning before 2011?...............
    If “Yes,” list the years bullet20, 20, 20, 20
    b
    Are there any years listed in 2a for which the foundation is not applying the provisions of section 4942(a)(2)
    (relating to incorrect valuation of assets) to the year’s undistributed income? (If applying section 4942(a)(2)
    to all years listed, answer “No” and attach statement—see page 20 of the instructions.) .........
    2b
     
     
    c
    If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here.
    bullet20, 20, 20, 20
    3a
    Did the foundation hold more than a 2% direct or indirect interest in any business
    enterprise at any time during the year?.....................
    b
    If “Yes,” did it have excess business holdings in 2011 as a result of (1) any purchase by the foundation
    or disqualified persons after May 26, 1969; (2) the lapse of the 5-year period (or longer period approved
    by the Commissioner under section 4943(c)(7)) to dispose of holdings acquired by gift or bequest; or (3)
    the lapse of the 10-, 15-, or 20-year first phase holding period? (Use Schedule C, Form 4720, to determine
    if the foundation had excess business holdings in 2011.)....................
    3b
     
    No
    4a
    Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes?
    4a
     
    No
    b
    Did the foundation make any investment in a prior year (but after December 31, 1969) that could jeopardize its
    charitable purpose that had not been removed from jeopardy before the first day of the tax year beginning in 2011?
    4b
     
    No
    5a
    During the year did the foundation pay or incur any amount to:
    (1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))?
    (2) Influence the outcome of any specific public election (see section 4955); or to carry
    on, directly or indirectly, any voter registration drive?...............
    (3) Provide a grant to an individual for travel, study, or other similar purposes?
    (4) Provide a grant to an organization other than a charitable, etc., organization described
    in section 509(a)(1), (2), or (3), or section 4940(d)(2)? (see page 22 of the instructions)...
    (5) Provide for any purpose other than religious, charitable, scientific, literary, or
    educational purposes, or for the prevention of cruelty to children or animals?........
    b
    If any answer is “Yes” to 5a(1)–(5), did any of the transactions fail to qualify under the exceptions described in
    Regulations section 53.4945 or in a current notice regarding disaster assistance (see page 22 of the instructions)?
    5b
     
     
    .........bullet
    c
    If the answer is “Yes” to question 5a(4), does the foundation claim exemption from the
    tax because it maintained expenditure responsibility for the grant?............
    If “Yes,” attach the statement required by Regulations section 53.4945–5(d).
    6a
    Did the foundation, during the year, receive any funds, directly or indirectly, to pay
    premiums on a personal benefit contract?....................
    b
    Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract?....
    6b
     
    No
    If “Yes” to 6b, file Form 8870.
    7a
    At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction?
    b
    If yes, did the foundation receive any proceeds or have any net income attributable to the transaction? ....
    7b
     
     
    Form 990-PF (2011)
    Form 990-PF (2011)
    Page 6
    Part VIII
    Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees,
    and Contractors
    1 List all officers, directors, trustees, foundation managers and their compensation (see page 22 of the instructions).
    (a) Name and address (b) Title, and average
    hours per week
    devoted to position     		(c) Compensation
     (If not paid, enter
    -0-)     		(d) Contributions to
    employee benefit plans
    and deferred compensation     		(e) Expense account,
    other allowances
    TIMOTHY N TEENClick to see attachment CEO - TRUSTEE
    45.0     		266,700 30,137 0
    356 NINTH AVENUE
    DOVER,NJ07801
    JOSEPH N MORANClick to see attachment MANAGING DIRECTOR/CFO
    45.0     		150,000 16,950 0
    356 NINTH AVENUE
    DOVER,NJ07801
    MICHAEL P DEVINEClick to see attachment PRES&CHIEF TECHNOLOGY OFFICER
    55.0     		250,000 36,250 0
    356 NINTH AVENUE
    DOVER,NJ07801
    CARMINE SPINELLIClick to see attachment CHAIRMAN - TRUSTEE
    3.0     		0 0 0
    356 NINTH AVENUE
    DOVER,NJ07801
    FLORENCE BLOCKClick to see attachment TRUSTEE
    3.0     		0 0 0
    356 NINTH AVENUE
    DOVER,NJ07801
    JOHN INGLESINOClick to see attachment TRUSTEE
    3.0     		0 0 0
    356 NINTH AVENUE
    DOVER,NJ07801
    MARGARET NORDSTROMClick to see attachment TRUSTEE
    3.0     		0 0 0
    356 NINTH AVENUE
    DOVER,NJ07801
    DARREN RYDBERGClick to see attachment TRUSTEE
    3.0     		0 0 0
    356 NINTH AVENUE
    DOVER,NJ07801
    2 Compensation of five highest-paid employees (other than those included on line 1—see page 23 of the instructions).
    If none, enter “NONE.”
    (a) Name and address of each employee paid more than $50,000 (b) Title, and average
    hours per week
    devoted to position     		(c) Compensation (d) Contributions to
    employee benefit
    plans and deferred
    compensation     		(e) Expense account,
    other allowances
    GREG E SAXON DIR. OF BUSINESS DEV
    40.0     		99,173 14,380 0
    356 NINTH AVENUE
    DOVER,NJ07801
    ALEXANDER COCOZIELLO DIR. OF BUSINESS DEV
    40.0     		120,000 17,400 0
    356 NINTH AVENUE
    DOVER,NJ07801
    MICHAEL MURRAY DIR. OF CORP DEVELOP
    40.0     		100,000 14,500 0
    356 NINTH AVENUE
    DOVER,NJ07801
    Total number of other employees paid over $50,000...................bullet  
    3 Five highest-paid independent contractors for professional services (see page 23 of the instructions). If none, enter "NONE".
    (a) Name and address of each person paid more than $50,000 (b) Type of service (c) Compensation
     
    Total number of others receiving over $50,000 for professional services.............bullet  
    Part IX-A
    Summary of Direct Charitable Activities
    List the foundation’s four largest direct charitable activities during the tax year. Include relevant statistical information such as the number of organizations and other beneficiaries served, conferences convened, research papers produced, etc. Expenses
    1
     
    2  
    3  
    4 PROGRAM SERVICE ACCOMPLISHMENTS. 594,163
    Form 990-PF (2011)
    Form 990-PF (2011)
    Page 7
    Part IX-B
    Summary of Program-Related Investments (see page 23 of the instructions)
    Describe the two largest program-related investments made by the foundation during the tax year on lines 1 and 2. Amount
    1  
    2  
    All other program-related investments. See page 24 of the instructions.
    3  
    Total. Add lines 1 through 3..........................bullet  
    Part X
    Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations,
    see page 24 of the instructions.)
    1
    Fair market value of assets not used (or held for use) directly in carrying out charitable, etc.,
    purposes:
    a
    Average monthly fair market value of securities...................
    1a
    0
    b
    Average of monthly cash balances.......................
    1b
    38,912
    c
    Fair market value of all other assets (see page 24 of the instructions)............
    1c
    3,999,995
    d
    Total (add lines 1a, b, and c).........................
    1d
    4,038,907
    e
    Reduction claimed for blockage or other factors reported on lines 1a and
    1c (attach detailed explanation) .............
    1e
     
    2
    Acquisition indebtedness applicable to line 1 assets..................
    2
    0
    3
    Subtract line 2 from line 1d.........................
    3
    4,038,907
    4
    Cash deemed held for charitable activities. Enter 1 1⁄2% of line 3 (for greater amount, see page 25
    of the instructions) ...........................
    4
    60,584
    5
    Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4
    5
    3,978,323
    6
    Minimum investment return. Enter 5% of line 5..................
    6
    198,916
    Part XI
    Distributable Amount bullet and do not complete this part.)
    1
    Minimum investment return from Part X, line 6....................
    1
    198,916
    2a
    Tax on investment income for 2011 from Part VI, line 5......
    2a
    198
    b
    Income tax for 2011. (This does not include the tax from Part VI.)...
    2b
     
    c
    Add lines 2a and 2b............................
    2c
    198
    3
    Distributable amount before adjustments. Subtract line 2c from line 1............
    3
    198,718
    4
    Recoveries of amounts treated as qualifying distributions................
    4
     
    5
    Add lines 3 and 4............................
    5
    198,718
    6
    Deduction from distributable amount (see page 25 of the instructions)...........
    6
     
    7
    Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII,
    line 1................................
    7
    198,718
    Part XII
    Qualifying Distributions (see page 25 of the instructions)
    1
    Amounts paid (including administrative expenses) to accomplish charitable, etc., purposes:
    a
    Expenses, contributions, gifts, etc.—total from Part I, column (d), line 26 ..........
    1a
    594,163
    b
    Program-related investments—total from Part IX-B..................
    1b
    0
    2
    Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc.,
    purposes...............................
    2
    0
    3
    Amounts set aside for specific charitable projects that satisfy the:
    a
    Suitability test (prior IRS approval required)....................
    3a
    0
    b
    Cash distribution test (attach the required schedule) .................
    3b
    0
    4
    Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4
    4
    594,163
    5
    Foundations that qualify under section 4940(e) for the reduced rate of tax on net investment
    income. Enter 1% of Part I, line 27b (see page 26 of the instructions)............
    5
     
    6
    Adjusted qualifying distributions. Subtract line 5 from line 4..............
    6
    594,163
    Note: The amount on line 6 will be used in Part V, column (b), in subsequent years when calculating whether the foundation qualifies for
    the section 4940(e) reduction of tax in those years.
    Form 990-PF (2011)
    Form 990-PF (2011)
    Page 8
    Part XIII
    Undistributed Income (see page 26 of the instructions)
    (a)
    Corpus     		(b)
    Years prior to 2010     		(c)
    2010     		(d)
    2011
    1 Distributable amount for 2011 from Part XI, line 7 198,718
    2 Undistributed income, if any, as of the end of 2011:
    a Enter amount for 2010 only....... 0
    b Total for prior years:2009, 2008, 2007 0
    3 Excess distributions carryover, if any, to 2011:
    a From 2006.......  
    b From 2007....... 670,237
    c From 2008....... 1,273,646
    d From 2009....... 1,566,822
    e From 2010....... 416,770
    fTotal of lines 3a through e......... 3,927,475
    4Qualifying distributions for 2011 from Part
    XII, line 4: bullet$ 594,163
    a Applied to 2010, but not more than line 2a 0
    b Applied to undistributed income of prior years
    (Election required—see page 26 of the instructions)    		  
    c Treated as distributions out of corpus (Election
    required—see page 26 of the instructions)...     		 
    d Applied to 2011 distributable amount..... 198,718
    e Remaining amount distributed out of corpus 395,445
    5 Excess distributions carryover applied to 2011.    
    (If an amount appears in column (d), the
    same amount must be shown in column (a).)
    6Enter the net total of each column as
    indicated below:
    a Corpus. Add lines 3f, 4c, and 4e. Subtract line 5 4,322,920
    b Prior years’ undistributed income. Subtract
    line 4b from line 2b ...........     		0
    c Enter the amount of prior years’ undistributed
    income for which a notice of deficiency has
    been issued, or on which the section 4942(a)
    tax has been previously assessed......     		 
    d Subtract line 6c from line 6b. Taxable
    amount—see page 27 of the instructions ...     		0
    e Undistributed income for 2010. Subtract line
    4a from line 2a. Taxable amount—see page 27
    of the instructions ...........     		0
    f Undistributed income for 2011. Subtract
    lines 4d and 5 from line 1. This amount must
    be distributed in 2011 ..........     		0
    7 Amounts treated as distributions out of
    corpus to satisfy requirements imposed by
    section 170(b)(1)(F) or 4942(g)(3) (see page 27
    of the instructions) ...........     		 
    8Excess distributions carryover from 2006 not
    applied on line 5 or line 7 (see page 27 of the
    instructions) .............     		 
    9Excess distributions carryover to 2012.
    Subtract lines 7 and 8 from line 6a ......     		4,322,920
    10 Analysis of line 9:
    a Excess from 2007.... 670,237
    b Excess from 2008.... 1,273,646
    c Excess from 2009.... 1,566,822
    d Excess from 2010.... 416,770
    e Excess from 2011.... 395,445
    Form 990-PF (2011)
    Form 990-PF (2011)
    Page 9
    Part XIV
    Private Operating Foundations (see page 27 of the instructions and Part VII-A, question 9)
    1a If the foundation has received a ruling or determination letter that it is a private operating
    foundation, and the ruling is effective for 2011, enter the date of the ruling.......bullet
     
    b Check box to indicate whether the organization is a private operating foundation described in section or
    2a Enter the lesser of the adjusted net
    income from Part I or the minimum
    investment return from Part X for each
    year listed ..........     		Tax year Prior 3 years (e) Total
    (a) 2011 (b) 2010 (c) 2009 (d) 2008
             
    b 85% of line 2a .........          
    c Qualifying distributions from Part XII,
    line 4 for each year listed .....     		         
    d Amounts included in line 2c not used directly
    for active conduct of exempt activities ....     		         
    e Qualifying distributions made directly
    for active conduct of exempt activities.
    Subtract line 2d from line 2c ....     		         
    3 Complete 3a, b, or c for the
    alternative test relied upon:
    a “Assets” alternative test—enter:
    (1) Value of all assets ......          
    (2) Value of assets qualifying
    under section 4942(j)(3)(B)(i)    		          
    b “Endowment” alternative test— enter 2⁄3
    of minimum investment return shown in
    Part X, line 6 for each year listed...     		         
    c “Support” alternative test—enter:
    (1) Total support other than gross
    investment income (interest,
    dividends, rents, payments
    on securities loans (section
    512(a)(5)), or royalties) ....     		         
    (2) Support from general public
    and 5 or more exempt
    organizations as provided in
    section 4942(j)(3)(B)(iii)....     		         
    (3) Largest amount of support
    from an exempt organization    		          
    (4) Gross investment income          
    Part XV
    Supplementary Information (Complete this part only if the organization had $5,000 or more in
    assets at any time during the year—see page 27 of the instructions.)
    1Information Regarding Foundation Managers:
    aList any managers of the foundation who have contributed more than 2% of the total contributions received by the foundation
    before the close of any tax year (but only if they have contributed more than $5,000). (See section 507(d)(2).)
    NONE
    bList any managers of the foundation who own 10% or more of the stock of a corporation (or an equally large portion of the
    ownership of a partnership or other entity) of which the foundation has a 10% or greater interest.
    NONE
    2Information Regarding Contribution, Grant, Gift, Loan, Scholarship, etc., Programs:
    Check here bullet
    aThe name, address, and telephone number of the person to whom applications should be addressed:
    bThe form in which applications should be submitted and information and materials they should include:
    cAny submission deadlines:
    dAny restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other
    factors:
    Form 990-PF (2011)
    Form 990-PF (2011)
    Page 10
    Part XV
    Supplementary Information (continued)
    3 Grants and Contributions Paid During the Year or Approved for Future Payment
    Recipient If recipient is an individual,
    show any relationship to
    any foundation manager
    or substantial contributor
    		 Foundation
    status of
    recipient     		Purpose of grant or
    contribution     		Amount
    Name and address (home or business)
    aPaid during the year
    Pax River Technologies LLC
    356 NINTH AVENUE
    101
    DOVER,NJ07801     		NONE 501(c)6 DONATION FOR GENERAL OPERATIONS 400
    Total .................................bullet 3a 400
    bApproved for future payment
    Total .................................bullet 3b  
    Form 990-PF (2011)
    Form 990-PF (2011)
    Page 11
    Part XVI-A
    Analysis of Income-Producing Activities
    Enter gross amounts unless otherwise indicated. Unrelated business income Excluded by section 512, 513, or 514 (e)
    Related or exempt
    function income
    (See page 28 of
    the instructions.)
    1Program service revenue: (a)
    Business code     		(b)
    Amount     		(c)
    Exclusion code     		(d)
    Amount
    aPROGRAM SERVICE REVENUE         1,450,667
    bMANAGEMENT INCOME         94,400
    cOTHER INCOME         8,133
    d
    e
    f
    gFees and contracts from government agencies          
    2 Membership dues and assessments....          
    3Interest on savings and temporary cash investments     14 1,505  
    4 Dividends and interest from securities....          
    5 Net rental income or (loss) from real estate:
    aDebt-financed property......          
    bNot debt-financed property.....     16 8,402  
    6Net rental income or (loss) from personal property          
    7 Other investment income.....          
    8Gain or (loss) from sales of assets other than inventory          
    9 Net income or (loss) from special events:          
    10 Gross profit or (loss) from sales of inventory..          
    11 Other revenue: a
    b
    c
    d
    e
    12 Subtotal. Add columns (b), (d), and (e)..   9,907 1,553,200
    13Total. Add line 12, columns (b), (d), and (e)..................
    131,563,107
    (See worksheet in line 13 instructions on page 28 to verify calculations.)
    Part XVI-B
    Relationship of Activities to the Accomplishment of Exempt Purposes
    Line No.
    DownArrow     		Explain below how each activity for which income is reported in column (e) of Part XVI-A contributed importantly to
    the accomplishment of the organization’s exempt purposes (other than by providing funds for such purposes). (See
    page 28 of the instructions.)
    1 THE IN-KIND SERVICES PROVIDED BY INSITECH HAVE HISTORICALLY BEEN CARRIED OUT BY THE U.S. ARMY'S PICATINNY ARSENAL. THESE FUNCTIONS ARE ESSENTIAL TO PICATINNY'S EXISTENCE, AND WOULD BE A BURDEN TO PICATINNY IF ASSUMED BY THE BASE. INSITECH PROVIDES MANY OF THESE ESSENTIAL REQUIREMENTS THROUGH IN-KIND SERVICES, ENABLING PICATINNY TO ACHEIVE HIGHER EFFICIENCY AND EFFECTIVENESS IN MANAGING AND USING ITS RESOURCES, AND, THEREFORE, ACTUALLY LESSENING THE BURDEN OF PICATINNY IN CARRYING OUT ITS MISSION.
    Form 990-PF (2011)
    Form 990-PF (2011)
    Page 12
    Part XVII
    Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations
    1
    Did the organization directly or indirectly engage in any of the following with any other organization described in section
    Yes
    No
    501(c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations?
    a
    Transfers from the reporting foundation to a noncharitable exempt organization of:
    (1) Cash...................................
    1a(1)
     
    No
    (2) Other assets.................................
    1a(2)
     
    No
    b
    Other transactions:
    (1) Sales of assets to a noncharitable exempt organization....................
    1b(1)
     
    No
    (2) Purchases of assets from a noncharitable exempt organization..................
    1b(2)
     
    No
    (3) Rental of facilities, equipment, or other assets.......................
    1b(3)
     
    No
    (4) Reimbursement arrangements...........................
    1b(4)
     
    No
    (5) Loans or loan guarantees.............................
    1b(5)
     
    No
    (6) Performance of services or membership or fundraising solicitations................
    1b(6)
     
    No
    c
    Sharing of facilities, equipment, mailing lists, other assets, or paid employees..............
    1c
     
    No
    d
    If the answer to any of the above is “Yes,” complete the following schedule. Column (b) should always show the fair market value
    of the goods, other assets, or services given by the reporting foundation. If the foundation received less than fair market value
    in any transaction or sharing arrangement, show in column (d) the value of the goods, other assets, or services received.
    (a) Line No. (b) Amount involved (c) Name of noncharitable exempt organization (d) Description of transfers, transactions, and sharing arrangements
    2a
    Is the foundation directly or indirectly affiliated with, or related to, one or more tax-exempt organizations
    described in section 501(c) of the Code (other than section 501(c)(3)) or in section 527?...........
    b
    If “Yes,” complete the following schedule.
    (a) Name of organization (b) Type of organization (c) Description of relationship
    SignHere
    Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer or fiduciary) is based on all information of which preparer has any knowledge.
    Bullet Bullet
    Signature of officer or trustee Date Title
    PaidPreparersUseOnly Preparer's SignatureBullet Date PTIN
    Firm's namebullet



    Firm's addressbullet







         		Firm's EINbullet
    Phone no.
    Form 990-PF (2011)
    Additional Data


    Software ID:  
    Software Version:  


    Form 990PF - Special Condition Description:
    Special Condition Description

    TY 2011 CompensationExplanation
    Name:
    INSITECH INC
    EIN: 32-0098519
    Person Name Explanation
    TIMOTHY N TEEN ALL COMPENSATION AMOUNTS FOR TIMOTHY N. TEEN, THE CEO - TRUSTEE, ARE APPROVED BY AN INTERNAL COMPENSATION COMMITTEE, IN CONCERT WITH THE ORGANIZATIONS LEGAL COUNSEL, AND VERIFIED BY A REPORT THAT IS COMMISSIONED BY THE COMPANY FROM AN INDEPENDENT COMPENSATION COMMITTEE PURSUANT TO THE REQUIREMENTS OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER INTERNAL REVENUE CODE SECTION 4958.

    Note: To capture the full content of this document, please select landscape mode (11" x 8.5") when printing.

    TY 2011 DepreciationSchedule
    Name:
    INSITECH INC
    EIN: 32-0098519
    Description of Property Date Acquired Cost or Other Basis Prior Years' Depreciation Computation Method Rate /
    Life (# of years)    		 Current Year's Depreciation Expense Net Investment Income Adjusted Net Income Cost of Goods Sold Not Included

    TY 2011 ExplnOfNonFilingWithAGStmt
    Name:
    INSITECH INC
    EIN: 32-0098519
    Statement:
    New Jersey only requires filing if the organization receives contributions during the year. Insitech, Inc did not receive any contributions during; therefore, no NJ return will be filed.

    TY 2011 GeneralExplanationAttachment
    Name:
    INSITECH INC
    EIN: 32-0098519
    Identifier Return Reference Explanation
    COMMUNITY BENEFIT STATEMENT FORM 990-PF, PART IX-A - SUMMARY OF DIRECT CHARITABLE ACTIVITIES NTRODUCTION ============ INSITECH IS NOT A GOVERNMENT ENTITY, BUT RATHER A PRIVATE CORPORATION THAT IS RECOGNIZED BY THE IRS UNDER INTERNAL REVENUE CODE SECTION 501(C)(3) TAX-EXEMPT ORGANIZATION AND IS EXEMPT UNDER TREAS. REG. 501(C)(3)-1(D)(2). THE ORGANIZATON IS A SERVICE PROVIDER THAT DOES NOT SOLICIT FOR PUBLIC CONTRIBUTIONS, RELYING ON A DIVERSE BUSINESS MODEL TO DELIVER ITS MISSION AND SECURE REVENUE. INSITECH IS A PRIVATE CORPORATION THAT WORKS IN PARTNERSHIP WITH THE ARDEC, AT THE U.S. ARMY'S PICATINNY ARSENAL IN MORRIS COUNTY, NJ AND NAWCWD AND NAWCAD AT U.S. NAVY'S BASES IN CHINA LAKE, CA AND PATUXENT RIVER, MD, RESPECTIVELY. INSITECH OPERATES CONSISTENTLY WITH THE FOLLOWING CRITERIA OUTLINED IN IRS REVENUE RULING 85-1, 1985-1 C.B. 177 AND REVENUE RULING 85-2, 1985-1 C.B. 178. AN ORGANIZATION LESSENS THE BURDENS OF GOVERNMENT IF 1) THERE IS AN OBJECTIVE MANIFESTATION BY THE GOVERNMENTAL UNIT THAT IT CONSIDERS THE ACTIVITIES OF THE ORGANIZATION TO BE THE GOVERNMENT'S BURDENS, AND 2) THE ORGANIZATION ACTUALLY LESSENS THE GOVERNMENT'S BURDENS. THE INTERRELATIONSHIP BETWEEN THE GOVERNMENTAL UNIT AND THE ORGANIZATION MAY PROVIDE EVIDENCE THAT THE ORGANIZATION IS CREATED IN CONNECTION WITH A STATUTE IS EVIDENCE THAT THE ORGANIZATION RELIEVES THE BURDENS OF GOVERNMENT AND THAT THE GOVERNMENT ACKNOWLEDGES THAT THE ACTIVITIES ARE ITS BURDEN. THE OPERATIONS OF INSITECH, AS SHOWN THROUGH THE FACTORS OUTLINED ABOVE AND OTHER INFORMATION CONTAINED HEREIN, CLEARLY DEMONSTRATE THAT INSITECH IS FOR THE BENEFIT OF THE PUBLIC AND THE GOVERNMENT AND THAT NO PART OF THE INCOME OR NET EARNINGS OF THE ORGANIZATION INURES TO THE BENEFIT OF ANY PRIVATE INDIVIDUAL NOR IS ANY PRIVATE INTEREST BEING SERVED OTHER THAN INCIDENTALLY. MISSION ======= INSITECH, INC., AND ITS WHOLLEY OWNED SUBSIDIARIES, ARE NOT-FOR-PROFIT PARTNERSHIP INTERMEDIARIES FOR THE U.S. ARMY AND U.S. NAVY, AND REPRESENTS AN INNOVATIVE APPROACH TO LEVERAGING PRIVATE SECTOR RESOURCES TO SOURCE, EVALUATE AND COMMERCIALIZE DUAL-USE TECHNOLOGY, BENEFITING THE WARFIGHTER AND THE TAXPAYER THROUGH LEVERAGING PRIVATE SECTOR RESOURCES AND REDUCING THE BURDEN OF GOVERNMENT. INSITECH IS CONTRACTED BY THE MILITARY TO USE INNOVATIVE BUSINESS PRACTICES TO ADDRESS KEY MILITARY STRATEGIC INITIATIVES/CHALLENGES. THESE INCLUDE TECHNOLOGY/PRODUCT/PROCESS INNOVATION, STRATEGIC ALLIANCES AND PARTNERSHIPS. INSITECH'S RESPONSIBILTIES WITH THE MILITARY EXTEND TO TECHNOLOGY INSOURCING BY IDENTIFYING NON-TRADITIONAL SUPPLIERS FOR POTENTIAL SOLUTIONS OF EARLY RESEARCH AND DEVELOPMENT PROBLEMS FOR THE MILITARY. THE COMPANY IS FURTHER CONTRACTED BY THE MILITARY TO REVIEW, EVALUATE, RECOMMEND AND IMPLEMENT STEPS TO IMPROVE MILITARY TECHNOLOGY INNOVATION STRATEGIES AND INITIATIVES TO EMBED TECHNOLOGY INNOVATION PROCESSES, BUILD A TECHNOLOGY INNOVATION PORTFOLIO AND GROW AN INNOVATION WORKFORCE WITHIN THE MILITARY. ALL OF THIS IS CONSISTENT WITH DEPARTMENT OF DEFENSE INITIATIVES. INSITECH PROMOTES PARTNERING ACTIVITIES WITH THE MILITARY TO ASSIST, EVALUATE, AND OTHERWISE COOPERATE TO DEVELOP TECHNOLOGY RELATED ASSISTANCE FOR THE MILITARY AND TO BENEFIT THE PUBLIC. INSITECH WORKS IN PARTNERSHIP WITH THE MILITARY TO FACILITATE THE ACCELERATION OF DUAL-USE TECHOLOGY DEVELOPMENT AND COMMERCIALIZATION AND ADVANCE THE GOVERNMENT'S EFFORTS IN THE APPLICATION OF DUAL-USE TECHNOLOGY DEVELOPMENT TO BENEFIT THE NATIONS'S ECONOMY AND SECURITY. INSITECH IS A 9-YEAR OLD BUSINESS THAT HAS TO CONTINUALLY EVOLVE IN RESPONSE TO THE NEEDS OF THE MILITARY, AS A RESULT OF ITS PARTNERSHIP INTERMEDIARY ROLE. WITH A BROAD CORPORATE CHARTER, IT REQUIRES VARIOUS SKILLS AND PRACTICES ASSOCIATED WITH, AT MINIMUM TECHNOLOGY COMMERCIALIZATION, CORPORATE RESEARCH AND DEVELOPMENT, REAL ESTATE DEVELOPMENT, VENTURE CAPITAL, FINANCIAL SERVICES AND COMMUNITY RELATIONS TO FACILITATE ITS DEMANDING OBJECTIVES. INSITECH IS AN INNOVATIVE, ENTREPRENEURIAL BUSINESS THAT HAS A UNIQUE PARTNERSHIP WITH THE U.S. MILITARY IN GENERAL AND PICATINNY ARSENAL IN MORRIS COUNTY, NJ, CHINA LAKE NAVY BASED IN KERN COUNTY, CA, AND PATUXENT RIVER NAVY BASED IN ST. MARY'S COUNTY, MD, IN PARTICULAR. INSITECH PROVIDES HIGHLY DIFFERENTIATED YET COMPREHENSIVE PROFESSIONAL SERVICES THAT ARE CONTRACTED FOR BY THE U.S. MILITARY, AND AS SUCH, INSITECH'S PEOPLE ARE ITS PRODUCT. AS SUCH, ITS PERSONNEL COSTS ARE DISPROPORTIONAL ON A RATIO BASIS, BUT INSITECH'S PERSONNEL MUST SECURE, AND DELIVER UPON PROGRAM REVENUE TO FUND THE COMPANY, AS THE COMPANY DOES NOT SOLICIT CHARITABLE DONATIONS OR RECEIVE GOVERNMENT GRANTS. INSITECH HAS RECRUITED A PERFORMANCED BASED TEAM, BUILDING A BRAND FOR INSITECH, AND RELATIONSHIPS IN THE FEDERAL LABORATORY, CORPORATE, ACEDEMIC AND EARLY STAGE TECHNOLOGY MARKETS TO HELP DELIVER UPON ITS CHARTER. INSITECH IS SUPPORTED BY A TEAM WITH EXPERIENCE IN PRODUCTIZING TECHNOLOGIES FROM VARIOUS TECHOLOGY READINESS LEVELS, LEADING COMPANIES THROUGH MULTIPLE PHASES OF RESEARCH AND DEVELOPMENT, OPERATING AND GROWING MANUFACTURING AND TECHNOLOGY BASED BUSINESSES, KNOWLEDGE OF THE MILITARY AND ACQUISITION/USER REQUIREMENTS, SOLVING CUSTOMER/USER REQUIREMENTS IN BOTH COMMERCIAL AND MILITARY MARKETS, AND SECURING OUTSIDE FUNDING TO GROW COMPANIES. IN ORDER TO EFFECTIVELY ACHIEVE ITS MISSION, INSITECH REQUIRES EMPLOYEES WITH HIGHLY DIFFERENTIATED SKILLS AND CREDENTIALS, SEEKING TO ATTRACT, RETAIN AND REWARD EMPLOYEES FROM THE INDUSTRIES AND TALENT POOLS ALIGNED WITH ITS MISSION, WHO CAN MAKE THE COMMITMENT OF PERSONAL TIME REQUIRED. THIS REQUIRES A MIX OF EMPLOYEES WITH ALL STAGES OF TECHNOLOGY AND COMMERCIALIZATION EXPERTISE AND BACKGROUNDS IN VARIOUS FINANCIAL SERVICES (VENTURE CAPITAL, PRIVATE EQUITY, AND MERGERS AND ACQUISITIONS) AND GENERAL INDUSTRY. INSITECH'S COMPENSATION PROGRAMS AND POLICIES (IN ACCORDANCE WITH IRS GUIDANCE) REFLECT MARKET LEVEL COMPENSATION RATES PAID TO EXECUTIVES WHO WORK AT FOR-PROFIT COMPANIES. INSITECH'S COMPENSATION PROGRAMS OPERATE IN FULL TRANSPARENCY AND IRS COMPLIANCE AND ARE OVERSEEN BY: 1) A COMPENSATION COMMITTEE FROM THE BOARD, 2) OUTSIDE LEGAL COUNSEL EXPERIEINCED IN IRS AND COMPENSATION MATTERS, 3) A THIRD-PARTY COMPENSATION FIRM THAT EVALUATES, COMPARES AND RECOMMENDS COMPENSATION BASED ON THE PRIVATE SECTOR, 4) OUTSIDE ACCOUNTING COUNSEL EXPERIENCED IN IRS AND COMPENSATION MATTERS. INSITECH, THROUGH THE VOLUNTEERING OF TIME BY ITS EMPLOYEES SUPPORTS OTHER MILITARY FOCUSED CHARITABLE ORGANIZATIONS, INCLUDING HAVING WORKED WITH THE HIGHEST REACHES OF THE DEPARTMENT OF THE MILITARY TO FOUND THE DEPLOYED CHILDCARE ASSISTANCE PROGRAM, ("DCAP"). THIS ORGANIZATION CONVERTS THE VISION OF THE SECRETARY OF THE ARMY - TO IMPROVE THE QUALITY OF LIFE FOR THE FAMILY OF A DEPLOYED WARFIGHTER - INTO A REALITY THROUGH COLLABORATION WITH THE PRIVATE SECTOR. COLLABORATING WITH THE PICATINNY CHAPTER OF THE NDIA, DCAP RECEIVES PRIVATE SECTOR DONATIONS FROM THOSE WHO WANT TO EXPRESS THEIR HEARTFELT GRATITUDE AND RECOGNIZE THE COMMITMENT MADE BY THE FAMILY OF DEPLOYED SOLDIERS. DCAP IS INITIALLY FOCUSED ON PROVIDING INCREMENTS OF DAYCARE/CHILDCARE/BABY SITTING SERVICES, TO AUGMENT WHAT IS PROVIDED BY THE U.S. ARMY. BY OFFERING THIS RESPITE FOR THE SPOUSE, DCAP IS ENABLING MUCH NEEDED RELIEF FROM THE STRESS OF BEING A SINGLE PARENT, RESULTING FROM A SOLDIER'S DEPLOYMENT.
    COMMUNITY BENEFIT STATEMENT CONT'D FORM 990-PF, PART IX-A - SUMMARY OF DIRECT CHARITABLE ACTIVITIES BACKGROUND ========== INSITECH, INC. WAS INCORPORATED AS A NEW JERSEY NONPROFIT CORPORATION ON NOVEMBER 12, 2003. TO CREATIVELY DELIVER ON ITS TECHNOLOGY ACCELERATION INITATIVE, INSITECH HELPED TO CREATE AN INDEPENDENT, THIRD PARTY VENTURE FUND TO LEVERAGE GOVERNMENT INVESTMENT IN DUAL USE TECHNOLOGY - LONG A GOAL OF THE U.S. MILITARY. THE FUND INVESTS IN COMPANIES THAT HAVE COMPELLING TECHNOLOGY FOR THE WARFIGHTER, BUT DO NOT HAVE THE MONEY TO SUSTAIN THE COMPANY IN SUPPORT OF THE MILITARY'S REQUIREMENTS. THIS ACCOMPLISHMENT WILL SPEED THE DEVELOPMENT OF TECHNOLOGY, REDUCE FUTURE TAXPAYER INVESTMENT, AND LEVERAGE GOVERNMENT MONEY AS WELL AS CREATE JOBS AND ECONOMIC ACTIVITY IN THE PROCESS. THE FUND HAS ALLOCATED OVER $125 MILLION TO SMALL COMPANIES THROUGH 2010, AND HELPED SECURE COMBINED FUNDING OF OVER $300 MILLION, INCLUDING CO-INVESTORS. IN 2006, INSITECH EXECUTED ONE OF THE FIRST-EVER ENHANCED USE LEASES, ("EUL") FOR THE ARMY. TO CREATIVELY DELIVER ON ITS BASE OPTIMIZATION INITIATIVE, INSITECH WORKED WITH AN INDEPENDENT REAL ESTATE DEVELOPER, APPROVED BY THE ARMY CORPS OF ENGINEERS, AND SECURED PRIVATE SECTOR MONEY TO REPOSITION NON-EXCESS LAND AND UNLOCK ITS VALUE TO HOUSE MISSION RELATED FIRMS, SUPPORT THE WARFIGHTER, AND FURTHER POSITION PICATINNY AS A WORLD CLASS R&D CENTER. THE ENHANCED USE LEASE INITIATIVE, AS MANAGED BY INSITECH, HAS RE-DEVELOPED AND LEASED 37,000 SQ. FT. OF NON-EXCESS FACILITY SPACE LOCATED INSIDE PICATINNY'S MISSION CRITICAL AREA. IN FUTURE PHASES OF THE EUL, INSITECH PLANS TO RE-DEVELOP AND LEASE ANOTHER 50,000 SQ. FT. OF NON-EXCESS FACILITY SPACE LOCATED INSIDE PICATINNY, AS WELL AS LEASING 120 ACRES OF NON-EXCESS LAND AT PICATINNY HEREAFTER REFERENCED AS THE PICATINNY APPLIED RESEARCH CAMPUS OR "THE PARC". IF FULLY REALIZED OVER TIME, THE PARC WILL BE COMPRISED OF NEW LABORATORY, ADMINISTRATIVE, EDUCATIONAL/TRAINING AND LIGHT MANUFACTURING SPACE. IT IS IMPORTANT TO RECOGNIZE THAT AT THE END OF THE TERM OF THE GROUND LEASE, OWNERSHIP OF THE BUILDINGS WILL REVERT TO THE GOVERNMENT. THE INITIAL LEASE ON THE EUL RESULTED IN A DOWN PAYMENT OF $1.7 MILLION IN 2006, WHICH INSITECH WILL USE TO OFFSET COSTS AT PICATINNY THROUGH IN-KIND SERVICES. THROUGH THE END OF 2011, INSITECH SPENT $1.4 MILLION THROUGH IN-KIND SERVICES THROUGH CONTRACTED WORK AT PICATINNY, CREATING A SUBSTANTIAL BENEFIT FOR THE U.S. MILITARY. THE REMAINING AMOUNT OF THE EUL DOWN PAYMENT IS PLANNING TO BE SPENT IN 2012 AND 2013, AT THE DECISION OF PICATINNY ARSENAL. WHILE NOT DEPICTED ON INSITECH'S FINANCIAL STATEMENTS, ANOTHER FINANCIAL BENEFIT OF THE EUL FOR THE GOVERNMENT IS A COST AVOIDANCE OF OVER $30 MILLION THROUGH THE LIFE OF THE TRANSACTION ON THE INITIAL LEASE. THE LEASE OF EXISTING, NON-EXCESS PROPERTY WILL ALSO PROVIDE THE GOVERNMENT WITH DIRECT REVENUE IN THE FORM OF A SERVICE SUPPORT AGREEMENT, PROJECTED AT $350 THOUSAND FOR THE INITIAL 100 SQURE FOOT OF BUILDINGS, AND $22 MILLION OVER THE LIFE OF THE ENTIRE EUL TRANSACTION. IN THE ATTAINMENT OF ITS OBJECTIVES, INSITECH HAS GENERATED MANY ADDITIONAL BENEFITS INCLUDING A CLOSE WORKING CONNECTION BETWEEN THE MILITARY AND THE COMMERCIAL SECTOR AND COMMUNITY THROUGHOUT THE STATE. MANY OF THESE COMPANIES BELIEVE THEY FINALLY HAVE A CHAMPION FOR THEIR BUSINESS AND THAT INSITECH WILL ACT AS THEIR GATEWAY TO THE MILITARY. THIS HAS ENABLED INSITECH TO CREATE A SIGNIFICANT NUMBER OF PARTNERS WHO ARE SUPPORTIVE OF BOTH THE MILITARY MISSION AND INSITECH INITIATIVE. THESE COMPANIES DEMONSTRATE THEIR SUPPORT OF THE MILITARY THROUGH MUTUAL COLLABORATION, INVESTMENT OF THEIR OWN CAPITAL, AND DISCUSSIONS TO THE USE OF MILITARY RESOURCES ON A FEE-FOR-SERVICE BASIS (CRADAS, TSAS AND CSAA). THE INSITECH INITIATIVE ENHANCES PICATINNY'S, , CHINA LAKE'S AND PATUXENT RIVER'S BRAND AND POTENTIAL TO EXPAND ITS RELEVANCE TO THE COMMERCIAL SECTOR IN NJ, CA, AND MD. THE INTRODUCTIONS THAT INSITECH HELPS FACILITATE BETWEEN THE GOVERNMENT AND THE COMMERCIAL SECTOR MANY TIMES RESULT IN TRANSACTIONS THAT ARE NOT BOOKED AS REVENUE THROUGH INSITECH. WHILE THESE DO NOT APPEAR ON INSITECH'S FINANICAL STATEMENTS, INSITECH'S INVOLVEMENT DIRECTLY GOES TOREDUCING THE BURDEN OF GOVERNMENT. HELPING SOURCE PRIVATE SECTOR MONEY =================================== INSITECH HELPS SMALLER COMPANIES (THAT SUPPLY THE GOVERNMENT) SECURE PRIVATE FUNDING, AS WELL AS OFFERS ARDEC, NAWCWD AND NAWCAD RESOURCES, AND INTRODUCES THEM TO THE U.S. MILITARY. THIS IS A DIRECT RESULT OF THE INSITECH TEAM BEING COMPRISED OF INDIVIDUALS WITH HIGHLY RELEVANT EXPERIENCE IN THE COMMERCIAL SECTOR AND KNOWLEDGE OF MILITARY REQUIREMENTS, COMBINED WITH THE PROCESS OF TRANSITIONING TECHNOLOGIES. DEVELOPING PICATINNY WITH PRIVATE SECTOR MONEY ============================================== BY DELIVERING ON ITS MISSION AND USING PICATINNY, CHINA LAKE AND PATUXENT RIVER AS FEDERAL ASSETS TO DRIVE THE ECONOMY IN MORRIS COUNTY AND THE STATE OF NJ, AND KERN COUNTY AND THE STATE OF CALIFORNIA, AND ST. MARY'S COUNTY IN THE STATE OF MARYLAND, RESPECTIVELY, THROUGH INSITECH'S TRANSACTIONS IN ITS REAL ESTATE AND PRIVATE SECTOR INVESTING ACTIVTIES. LONG-TERM FINANCIAL BENEFITS FOR THE GOVERNMENT CREATED THROUGH 12/31/2011: VENTURE INVESTMENTS IN NEW TECHNOLOGIES OVER $60,000,000 EUL - INITIAL LEASE DOWN PAYMENT $ 1,700,000 EUL - INITIAL LEASE COST AVOIDANCE $30,000,000 EUL - INITIAL LEASE SSA REVENUE $ 350,000 EUL - IN-KIND CONSIDERATION $ 200,000 CRADA REVENUE $250,000
    COMPENSATION FROM MINDCO, INC. 990, PART I, LINES 13 AND 14 THE TOTAL OF THE AMOUNTS PROVIDED ON PART I, LINES 13 AND 14 OF THIS 990 AGREE TO THE TOTAL SALARIES AND WAGES SHOWN UNDER INSITECH, INC. ON THE CONSOLIDATED FINANCIAL STATEMENTS. MINDCO, INC. IS A RELATED ENTITY OF INSITECH INC. AND ALSO SHOWS AN AMOUNT OF SALARIES AND WAGES IN THE CONSOLIDATED FINANCIAL STATEMENTS. THIS AMOUNT RELATES ENTIRELY TO MINDCO, INC. AND WAS DISCLOSED SEPERATELY ON ITS 2011 1120 TAX RETURN. THEREFORE THIS AMOUNT IS NOT INCLUDED IN PART 1, LINES 13 AND 14 OF THIS 990. ALSO NOTE THAT SEPERATE W-2'S WERE ISSUED FOR EACH ENTITY'S COMMON EMPLOYEES.

    TY 2011 InvestmentsOtherSchedule2
    Name:
    INSITECH INC
    EIN: 32-0098519
    Category/ Item Listed at Cost or FMV Book Value End of Year Fair Market Value
    INVESTMENT IN MINDCO   1,920 1,920

    TY 2011 LandEtcSchedule2
    Name:
    INSITECH INC
    EIN: 32-0098519
    Category / Item Cost / Other Basis Accumulated Depreciation Book Value End of Year Fair Market Value


    TY 2011 MortgagesAndNotesPayableSch 
    Name:
    INSITECH INC
    EIN: 32-0098519
    Total Mortgage Amount: 99208

    Item No. 1
    Lender's Name PICATINNY FEDERAL CREDIT UNION
    Lender's Title  
    Relationship to Insider  
    Original Amount of Loan 350000
    Balance Due 99208
    Date of Note  
    Maturity Date  
    Repayment Terms  
    Interest Rate  
    Security Provided by Borrower  
    Purpose of Loan  
    Description of Lender Consideration  
    Consideration FMV  


    TY 2011 OtherAssetsSchedule
    Name:
    INSITECH INC
    EIN: 32-0098519
    Description Beginning of Year - Book Value End of Year - Book Value End of Year - Fair Market Value
    INTANGIBLE ASSETS, NET 206,000 202,000 202,000
    ESCROW ACCOUNT 288,810 289,110 289,110
    DUE FROM AFFILIATE; CURRENT 1,834,923 1,987,123 1,987,123


    TY 2011 OtherExpensesSchedule
    Name:
    INSITECH INC
    EIN: 32-0098519
    Description Revenue and Expenses per Books Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    PURCHASED SERVICES, INCLUDING,        
    BUT NOT LIMITED TO, EMPLOYEE        
    BENEFITS 44,816   6,722 38,094
    INSURANCE 14,652   2,198 12,454
    UTILITITES 6,113   917 5,196
    SUPPLIES 14,616   2,192 12,424
    TELEPHONE 13,711   2,057 11,654
    OFFICE EXPENSE 188   28 160
    BANK CHARGES 1,210   182 1,029


    TY 2011 OtherIncomeSchedule2
    Name:
    INSITECH INC
    EIN: 32-0098519
    Description Revenue And Expenses Per Books Net Investment Income Adjusted Net Income
    PROGRAM SERVICE REVENUE 1,450,667   1,450,667
    OTHER INCOME 8,133   8,133
    MANAGEMENT INCOME 94,400   94,400


    TY 2011 TaxesSchedule
    Name:
    INSITECH INC
    EIN: 32-0098519
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    PAYROLL TAXES 191,282   28,692 162,590
    OTHER TAXES 500   75 425


    TY 2011 TransfersToControlledEntities
    Name:
    INSITECH INC
    EIN: 32-0098519
    Name US /
    Foreign Address    		 EIN Description Amount
    MINDCO INC 3305 MAIN ROAD SUITE 104
    DOVER,NJ07801     		20-3798684 INTERCOMPANY 0
    Total