Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of UI LABS dba MXD USA (MxD) for the year ended December 31, 2025. The information presented in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of MxD, it is not intended to and does not present the financial position, changes in net assets, functional expenses, or cash flows of MxD. For purposes of the Schedule, federal awards include all grants, contracts, cooperative agreements, and pass-through awards entered into directly between MxD and agencies and departments of the federal government, as well as subawards received from nonfederal entities under federally funded programs. MxD’s federal program during the year ended December 31, 2025 consisted entirely of the Research and Development Cluster, which includes awards received from various federal agencies and pass-through entities for research and development activities.
Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal award expenditures are reported using the same accounting policies used in the preparation of MxD’s financial statements. Award reporting periods may not coincide with MxD’s fiscal year. The Schedule includes expenditures incurred under federal programs during the fiscal year ended December 31, 2025. Federal expenditures which appear as negative amounts relate to prior period adjustments to revenue. The pass-through entity identifying numbers are presented where available.
MxD has elected not to use the 15 percent de minimis indirect cost rate permitted under the Uniform Guidance in accordance with 2 CFR 200.414(f) to recover indirect costs. Indirect costs are recovered under negotiated indirect cost rate agreements, where applicable.