TRTF Impact Report

IMPACT REPORT

A VISION TO THE FUTURE

A VISION TO THE FUTURE In 1983, General Robert McDermott, CEO of USAA, had a vision and mission to grow the fledgling Biotechnology sector in San Antonio. And thus, the Texas Research and Technology Foundation (TRTF) was formed. In support of this vision and mission, the generous land grant by the Tom and Nancy Pawel family was used to create the Texas Research Park. Both TRTF and the Texas Research Park supported early stage, start-up companies as well as recruited companies to locate and grow here in San Antonio.

Fast forward to 2022 and you see the same vision and mission accelerating through TRTF, VelocityTX, and partners, providing a new and expansive environment for catalytic growth in the Biotechnology field. Imagine the integration of people, collaborative advancements, and inspirational ideas being generated in our places and spaces through the creation of our very own Innovation District. We provide and will continue to support opportunities in this dynamic and important science and technology driven arena for generations to come.

We compete on a global landscape while still being true to the values and culture of San Antonio that have defined our unique position in the world. TRTF will be a driving force in our community in preparing our future workforce. We invite you to be part of the future of this transformative community project.

Join us at the Intersection of 2022.

J. Randolph Harig, CEO

BACKGROUND

The Texas Research & Technology Foundation (TRTF) is a non-profit organization that has functioned as the technology-based economic developer for the City of San Antonio, Bexar County, and the State of Texas since its establishment in 1984. For over 38 years, TRTF has been successfully promoting and developing emerging technologies and the life science industry in the San Antonio region. It has successfully developed a research park on the far westside of San Antonio, incubated companies that spun-out into successful enterprises, created jobs, and spurred investment. TRTF is redeveloping the historic Merchants Ice and Cold Storage Complex and Sutton Property into a broader Innovation District on the near eastside of San Antonio.

OUR MISSION Texas Research & Technology Foundation is San Antonio’s champion for delivering sustainable economic and community growth. We connect, develop, and fund innovative ventures that enhance our bioscience and technology ecosystem.

OUR VISION We propel economic success, a better quality of life, and a safer world through collaboration and innovation.

TRTF Board of Directors • • • •

Christopher Claus - Chairman J. Randolph (Randy) Harig - Board Member Larry Mills - Board Member Steven Dufilho - Board Member Emeritus

• • • •

Joyce Pingel - Board Member Cathy Starnes - Board Member David (Preston) Woolfolk - Board Member Jim Dublin - Board Member Emeritus

Integrity, Velocity, and Innovation are the essence of who we are and what we represent as employees. These values are the foundation of our strategic plan and business decision-making.

INTEGRITY Always Doing the Right Thing

VELOCITY Moving Success with Magnitude and Direction

INNOVATION Proactively Creating the Next Model

TRTF Executive Team J. Randolph (Randy) Harig Chief Executive Officer

Rene Dominguez, President & Chief Operating Officer

Jessica L. Harris, Chief Administrative Officer

Community House

VelocityTX

Alamo Angels

Brad Wheeless Managing Director

David Fonseca Chief Executive Officer

Juan (Sebastian) Garzon Executive Director

Rick Hernandez Chief Financial Officer

Front Row: Rick Hernandez, Brad Wheeless, Juan (Sebastian) Garzon, Gustavo A. Hurtado, Juana Suarez, Rubie S. Garcia, J. Randolph (Randy) Harig, Jessica L. Harris, Rosanna Norona, Kaitlyn Bloch, Abel Hernandez, Anita Moreno-Navarro, David Fonseca.

Back Row: Rene Dominguez, Desiree Carney, Eduardo (Eddie) De Luna, Liliana Chavez Pena, Carissa L. Costello, Javier Hernandez, McKenna Gallagher, Francisco Garcia (not pictured).

IMPACT AT FULL BUILD-OUT (2040)

10,238

Direct, Indirect, Induced Jobs

$3.2B

Annual Economic Impact

MASTER PLAN TRTF commissioned Economic & Planning Systems to develop a master plan, land use strategy, and impact analysis.

INNOVATION DISTRICT

Fostering Inclusive Job and Economic Growth

Inspired by the power of innovation, proximity, talent attraction, and inclusive economic development, TRTF has embarked on a bold vision to develop an urban innovation district.

The establishment of this Innovation District will position San Antonio as a leader in developing innovative medical breakthroughs and generating economic growth and investment. The Innovation District will be an inclusive community where collaboration, connectivity, and the colliding of ideas spur innovation in a connected, mixed-use development.

Initial Goals for the Innovation District: • Recruiting and retaining of businesses and research institutions, including the Department of Defense.

• Promoting education, skills training, workforce development, and entrepreneurship.

• Facilitating relationships with the residents of the neighborhoods around the Innovation District.

• Encouraging and securing infrastructure improvements that support investment and improve connectivity to and within the district.

In Partnership With:

Merchants Ice ex

G.J. Sutton Compl

IMPACT OF THE INNOVATION SUPERHUB AT FULL BUILD-OUT

5,515

Direct, Indirect, Induced Jobs

2,443

Direct Jobs

$1.8B

Annual Economic Impact

Complex

INNOVATION SUPERHUB Catalyst for Growth

TRTF’s flagship initiative — the Merchants Ice and G.J. Sutton properties — will deliver on the vision of an Innovation District. These two historic parcels comprise the Innovation Superhub located on the near eastside of San Antonio. This footprint will encompass approximately 12 acres of contiguous space dedicated to offices, research, retail, and open green space.

The Innovation Superhub will serve as the heart of the Innovation District, focused on promoting bioscience and innovation by attracting and growing companies and fostering an entrepreneurial spirit. The Innovation Superhub is vital to job creation, advancing military research and development, academic alignment, and private and public sector involvement. The goal is to leverage TRTF’s investment and be a catalyst for future economic development.

MERCHANTS ICE COMPLEX 140K SF Total

124K SF Office & Lab / 5K SF Co-Working 7K SF Distribution / 4K SF Retail

5 Buildings 5+ Acres

G.J. SUTTON COMPLEX 680K SF Total

646K SF Office & Lab / 34K SF Retail

6 Buildings 6 Acres

Built on the success of the Merchants Ice Complex, the G.J. Sutton property provides a footprint for future growth, attracting high-paying jobs.

G.J. Sutton was the first African-American from Bexar County elected to the Texas House of Representatives. The legacy of G.J. Sutton is an integral part of the redevelopment.

BUSINESS ATTRACTION AND EXPANSION Developing State-of-the-Art Facilities

In 2017, TRTF purchased the 5+ acre Merchants Ice and Cold Storage complex and is currently redeveloping the historic site into a bioscience and innovation campus.

In 2020, the VelocityTX Innovation Center was completed and opened 17,000 SF of dedicated space to house start-ups and entrepreneurs.

GenCure, a subsidiary of BioBridge Global, established their advanced stem-cell manufacturing plant on site, creating over 40 jobs with an average salary of $70,000. In 2021, Scorpion Biologics, a North Carolina-based bioscience venture located on campus committing to the creation of 44 jobs and investing $42M. In 2021, the Economic Development Administration (EDA) granted TRTF a $4M grant to establish six fully-equipped BSL-2 labs to increase the community lab capacity in the San Antonio region.

With the completion of the Merchants Ice Complex construction, the entire campus is expected to be fully redeveloped and completed by 2023.

Member of:

2021 CAREER AWARENESS IMPACT

73

Attended Workshops

250+

Attended STEM Family Nights

800

Received Science Lessons

1,120

Total Students Served

WORKFORCE DEVELOPMENT Inspiring Students to Choose STEM

TRTF forged a partnership with Communities in Schools of San Antonio (CIS-SA) to prepare the next generation of employees in bioscience and healthcare. Step Into STEM is a career awareness program designed to inspire middle school students to choose STEM education to prepare for future STEM careers, like those coming soon to the Innovation Superhub and District.

The 2021 program provided students on the eastside with an opportunity to participate in stimulating activities to enhance career awareness.

2021 Career Awareness Program Curriculum: In-class Science lessons with hands-on activities and career video.

Science Workshop: Full-day of interactive, hands-on activities and mentoring at VelocityTX Innovation Center.

STEM Family Night: Interactive STEM activity stations for students and parents.

TRTF plans for inclusive workforce development programs to develop into advanced educational opportunities such as internships, mentorships, and certifications.

In Partnership With:

velocitytx.org

2021 IMPACT AT A GLANCE

132

Jobs Created

31

Companies Served

121

Events Hosted

8,103

Attendees Welcomed

VELOCITY.TX

Helping Companies Scale with Velocity

VelocityTX, a nonprofit subsidiary of TRTF, helps companies scale. VelocityTX built a state-of-the-art Innovation Center that brings together like-minded community members who want to change the world — innovators, thinkers, doers, connectors.

Through this world-class Innovation Center, VelocityTX: • Connects entrepreneurs with mentors, networks, and additional resources they need to scale.

• Supports these ventures through incubator and accelerator programs geared toward professional and technical growth.

• Funds companies that demonstrate high potential success with their life-changing innovation.

These relationship-driven activities will accelerate high-quality job growth, create more economic opportunities, and support the next generation of innovative bioscience companies.

VELOCITY.TX INNOVATION CENTER 17K SF Total

5K SF Co-Working Space / 1 Community Center 25 Offices / 8 Mini-Labs / 4 Conference Rooms 1 Café / 1 Podcast Room

alamoangels.com

2021 HIGHLIGHTS AND IMPACT

56%

Membership Growth

$100K Average Investment

Companies Invested in:

33% 83% 66%

From San Antonio Texas-Based Minority & Female Led

242

Entrepreneurship Applications

ALAMO ANGELS

Investing in the next generation of Entrepreneurs

Created by San Antonio’s tech ecosystem leaders in 2017 and becoming a TRTF subsidiary in 2020, Alamo Angels is an angel investment network that provides capital to early-stage businesses across different industries. Angel funding is critical for earlystage company growth and for the development and growth of San Antonio’s innovation ecosystem.

Alamo Angels is comprised of a diverse group of angel investors, venture capitalists, family offices, entrepreneurs, operators, and individuals committed to investing in the next generation of entrepreneurs.

Members enjoy access to monthly pitch events featuring 3-4 innovative companies from San Antonio and across the country. Members also have access to bi-monthly educational offerings and quarterly networking events that gather the investment community.

ALAMO ANGELS BOARD OF DIRECTORS David Fonseca Clayton Killinger Rene Dominguez Dr. Amit Mehta David Robinson Jr.

John Paul Negem Mariano Gonzalez Meg Paulus Rahul Patel Juan (Sebastian) Garzon

COMMUNITY HOUSE

Community House was formed by TRTF to preserve the legacy of regional family-owned businesses that are in generational transition. The 501(c)3 Community Trust organization is designed to enhance the vitality of San Antonio businesses through its mission of preserving the legacy by retaining the company name, management team, employees, and most importantly their impact, which keeps the company in the community, benefitting the San Antonio region.

TRTF Community House acquires or has companies donated to the TRTF Community House portfolio of companies. It is a unique and innovative model that provides a comprehensive approach of ongoing support to help the companies thrive and grow. TRTF Community House is committed to the success of the companies by providing strategic planning, leadership development, investment capital, and business advisory support. A portion of the earnings generated from the TRTF Community House portfolio of companies helps provide sustainability of TRTF, assists with the transformative redevelopment in the eastside, and creates more economic development opportunities. Future plans for TRTF Community House include the establishment of a dedicated fund to help support economic and social development efforts in the San Antonio region.

“

We are thrilled to be the inaugural TRTF Community House company. We know that their business acumen and vision for San Antonio will ensure that Allen & Allen Co. continues well beyond the time that our family is able to manage operations. Allen & Allen Co. has been a pillar of the San Antonio building industry for 88+ years and we are confident that it will remain an integral part of San Antonio’s future.

- Buzz Miller

”

Buzz Miller & Coddy Pena

INAUGURAL LEGACY COMPANY

ALLEN & ALLEN CO. Founded in 1931, Allen & Allen Co., a local lumber and hardware company, joined Community House based on its alignment to give back and support the San Antonio community. Over the course of three years, Allen & Allen Co. has exponentially grown business sales and strengthened their company model to benefit the greater community.

HIGHLIGHTS AND IMPACT • 45% revenue growth resulted from fresh capital and a refocused strategic plan • Multiplied earnings three-fold • Created an additional 12 jobs growing the team to 75 people • Invested in additional trucks, forklifts, and information systems

FINANCIALS

TRTF is pleased to present the 2020 - 2021 audited financial statements for consolidated and material entities.

TRTF engages BDO to provide world-class assurance and tax services with the mutual goal of upholding the highest standards of ethics and compliance.

Statement of Activities/ Income Statement Revenues Sales Contributions Lease Membership

Consolidated 2021

TRTF 2021 -

2020

Community House 2020

Consolidated

TRTF 2020 -

6,398,211 1,357,717 129,551

19,503,066 1,149,998 1,259,599 55,407

19,503,066 -

1,149,998 1,259,599 55,407

782,049

28,369,352 -

782,049

159,137

-

159,137

37,036,880

28,369,352

8,667,528

22,127,207

19,503,066

2,624,141

Program/Operating

33,308,685

26,817,469

6,491,216

23,670,793

19,484,523

4,186,270

General & Administrative Total Expenses

1,123,958 34,432,643

26,817,469

1,123,958 7,615,174

1,974,320 25,645,113

19,484,523

1,974,320 6,160,590

2,604,237

1,551,883

1,052,354

(3,517,906)

18,543

(3,536,449)

1,234,287

-

1,234,287

16,290,065

-

16,290,065

3,838,524

1,551,883

2,286,641

12,772,159

18,543

12,753,616

Other Total Revenues

28,369,352 6,398,211 1,357,717 129,551

Community House 2021

Expenses

Change in Net Assets Other Income/(Expense) Gain on Sales of Land Total Change in Net Assets

Statement of Financial Position/Balance Sheet Assets

2021

Community House 2021

2021

2020

Community House 2020

Current Assets Property and Equipment, Net Other Non-Current Assets

21,210,790 36,296,758 9,687,892

8,373,206 820,553 819,156

12,837,584 35,476,205 8,868,736

17,909,492 31,048,029 9,664,175

5,303,492 826,258 915,597

12,606,000 30,221,771 8,748,578

Total Assets

67,195,440

10,012,915

57,182,525

58,621,696

7,045,347

51,576,349

11,077,543 13,886,016

2,402,238 3,091,774

8,675,305 10,794,242

4,905,919 13,716,158

2,814,240 630,749

2,091,679 13,085,409

24,963,559

5,494,012

19,469,547

18,622,077

3,444,989

15,177,088

42,231,881

4,518,903

37,712,978

39,999,619

3,600,358

36,399,261

67,195,440

10,012,915

57,182,525

58,621,696

7,045,347

51,576,349

Liabilities and Net Assets Current Liabilities Long-Term Liabilities Total Liabilities Net Assets Total Liabilities & Net Assets

NOTES:

Consolidated

TRTF

Consolidated

TRTF 2020

• Texas Research and Technology Foundation (TRTF) is a nonprofit organization incorporated in 1984 to foster scientific and educational development.

• TRTF established Community House, LLC (Community House) in 2019 and is a nonprofit and accounted for as a consolidated entity within TRTF. • Community House purchased Allen and Allen, LLC in 2019 which provides retail construction services selling lumber and hardware and is included in Community House and in the consolidated financials.

• TRTF owns land in the Texas Research Park and periodically sells land to interested buyers as listed in the Gain on Sales of Land.

• Long-Term Liabilities include 2 loans for a total of $10 million executed in December 2019 associated with new market tax credits. These loans are self-funding with a final maturity date of December 2049.

WHY BIOSCIENCES?

The Healthcare and Bioscience sector is the largest industry in San Antonio with an annual economic impact of over $40B. With one in six jobs in San Antonio in the healthcare and biosciences, this industry provides San Antonio an excellent opportunity for future growth and investment, creating high-wage jobs and generating medical breakthroughs that impact humanity.

The city’s biotech and biomed industries are well-established with a high concentration of resources and assets to drive this growth, including cutting-edge research.

San Antonio is also home to Military Medicine with profound military research, training, outpatient assets, and complementary units all contributing approximately $4B annually toward the overall economic impact.

A robust and growing life science industry is critical to San Antonio’s future economic success and is dependent on the community’s support of a thriving ecosystem and entrepreneurial culture.

Member of

BENEFACTORS

Oilman and philanthropist Tom Pawel and his wife Nancy donated more than 1,500 acres of land in 1986, establishing the Texas Research & Technology Foundation (TRTF) and the Texas Research Park. Tom and Nancy’s gift marked a significant milestone in TRTF’s history. It set TRTF with a solid financial background to boost the city’s healthcare and bioscience industry. Tom served in the U.S. Army during World War II. He later earned degrees from the Massachusetts Institute of Technology and the Harvard Business School. Nancy and Tom met at a Harvard Business School dance and married in 1951. They then moved to San Antonio, where Nancy did biomedical research at the School of Aviation Medicine at Randolph Air Force Base. In 1956, Tom and Nancy founded San Antonio-based Concord Oil company. Tom passed away in 2004 and Nancy in 2021. They are survived by their three daughters and grandchildren.

THANK YOU TO OUR 2021 DONORS AND PARTNERS Many thanks to our donors, partners, and sponsors who supported TRTF and its subsidiaries throughout 2021. Your gifts are enabling our vision to become a reality. Together, we will ensure the future growth of the San Antonio region and become a world-class hub for discovery and research.

texasresearchfoundation.com

1305 E. Houston Street San Antonio, TX 78205 (210) 591-2456