KOPERNIK SOLUTIONS
Financial Statements
December 31, 2021

KOPERNIK SOLUTIONS
Table of Contents
December 31, 2021

Independent Accountants’ Review Report(i) – (ii)

Financial Statements:
Statement of Financial Position

1

Statement of Activities

2Statement of Functional Expenses

3

Statement of Cash Flows4

Notes to Financial Statements

5 – 10INDEPENDENT ACCOUNTANTS’ REVIEW REPORTTo the Board of Directors ofKopernik Solutions
We have reviewed the accompanying financial statements of Kopernik Solutions (anonprofit organization), which comprise the statement of financial position as of December
31, 2021, and the related statements of activities, functional expenses and cash flows forthe year then ended, and the related notes to the financial statements. A review includes
primarily applying analytical procedures to management’s financial data and making
inquiries of management. A review is substantially less in scope than an audit, the objectiveof which is the expression of an opinion regarding the financial statements as a whole.
Accordingly, we do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the UnitedStates of America; 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.
Accountants’ Responsibility
Our responsibility is to conduct the review engagement in accordance with Statements onStandards for Accounting and Review Services promulgated by the Accounting andReview Services Committee of the AICPA. Those standards require us to perform
procedures to obtain limited assurance as a basis for reporting whether we are aware ofany material modifications that should be made to the financial statements for them to bein accordance with accounting principles generally accepted in the United States ofAmerica. We believe that the results of our procedures provide a reasonable basis for ourconclusion.
We are required to be independent of Kopernik Solutions and to meet our other ethicalresponsibilities, in accordance with the relevant ethical requirements related to our review.

(i)Accountants’ Conclusion
Based on our review, we are not aware of any material modifications that should be madeto the accompanying financial statements in order for them to be in accordance withaccounting principles generally accepted in the United States of America.
Respectfully submitted,

Fasten Halberstam LLP
New York, New York
November 15, 2022

(ii)

KOPERNIK SOLUTIONSStatement of Financial Position
December 31, 2021

ASSETS
Current assets
Cash
Investments
Contributions receivable
Prepaid expenses and other assets
Total current assets
Total assets$

230,722573,502100
1,168
805,492$

805,492$

13,50013,500

LIABILITIES AND NET ASSETS
Current liabilities
Accounts payable and accrued expenses
Total current liabilities
Net assets
Without donor restrictions
Total liabilities and net assets without donor restrictions

See Accompanying Notes and Accountants' Report-1-

791,992$

805,492

KOPERNIK SOLUTIONSStatement of Activities
For the Year Ended December 31, 2021

Without
Donor
Restrictions
Revenues
GrantsGeneral contributions
Total revenues$

Operating expenses
Program services
Supporting services
Management and generalFundraising
Total supporting services
Total operating expenses

209,200
49,540258,740

357,407
27,845
8,379
36,224
393,631(134,891)

Change in net assets from operations
Other income
Other income
Net investment return
Total other income

36
4,677
4,713

Change in net assets(130,178)

Net assets - beginning of year

922,170

Net assets - end of year

See Accompanying Notes and Accountants' Report-2-$

791,992

KOPERNIK SOLUTIONSStatement of Functional Expenses
For the Year Ended December 31, 2021

Supporting Services
ProgramServicesManagement
and GeneralFundraising

Total
Supporting
Services

Total

GrantsLicense, dues and fees
Information technology
Officers' compensation and benefits
Office expenses
Professional fees
Staff training and development$

350,000 $
40
3,231
4,136
-

$
1,617
1,761
8,996
14,246
1,225

$
2,361
1,818
4,200
-

$
3,978
3,579
8,996
18,4461,225

350,000
4,018
3,579
12,227
4,136
18,446
1,225

Total functional expenses$

357,407 $27,845 $8,379 $

36,224 $393,631

See Accompanying Notes and Accountants' Report-3-

KOPERNIK SOLUTIONSStatement of Cash Flows
For the Year Ended December 31, 2021

Cash flows from operating activities
Change in net assets
Adjustments to reconcile change in net assets to net cash
provided by (used in) operating activities
Net realized and unrealized gains on investments
Changes in operating assets and liabilities
Contributions receivable
Prepaid expenses and other assets
Accounts payable and accrued expenses
Grants payable
Net cash used in operating activities$(130,178)(4,677)
20,670(654)
10,392(82,546)(186,993)

Cash flows from investing activities
Purchase of investments
Net cash used in investing activities(558,910)(558,910)

Net decrease in cash, cash equivalents and restricted cash

(745,903)

Cash, cash equivalents and restricted cash - beginning of year

976,625

Cash, cash equivalents and restricted cash - end of year

See Accompanying Notes and Accountants' Report-4-$

230,722

KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2021
1.

NATURE OFORGANIZATIONAND
SUMMARY OF
SIGNIFICANTACCOUNTINGPOLICIES:

Nature of Organization
Kopernik Solutions (the Organization) is a not-for-profit organization incorporated
on September 18, 2009 in New York State. The Organization was formed for the
charitable purpose of providing developmental assistance to poor anddisadvantaged communities in the world through the use of technology or
innovative products, services and solutions designed to improve the quality of
their lives.
Support for the Organization’s programs is derived from foundation grants andgeneral contributions. The Organization is exempt from federal income taxes asan organization (not a private foundation) formed for charitable purposes under
Section 501(c)(3) of the Internal Revenue Code. Donors may deduct
contributions made to the Organization within Internal Revenue Coderequirements.
Basis of Accounting
The Organization prepares its financial statements in accordance with generally
accepted accounting principles promulgated in the United States of America(U.S. GAAP) for not-for-profit organizations on an accrual basis. The significant
accounting and reporting policies used by the Organization are described below.
Net Assets
Net assets and revenues, and gains and losses are classified based on theexistence or absence of donor-imposed restrictions. Accordingly, the net assetsof the Organization and changes therein are classified as follows:
Net assets without donor restrictions: Net assets that are not subject to donorimposed restrictions and may be used for any purpose in performing the main
objectives of the Organization. The Organization’s board may designate assets
without restrictions for specific operational purposes from time to time.
Net assets with donor restrictions: Net assets subject to terms imposed bydonors, and grantors. Some donor restrictions are temporary in nature; those
restrictions will be met by actions of the Organization or by the passage of time.
Other donor restrictions are perpetual in nature, whereby the donor has specified
the funds be maintained in perpetuity.
Cash and Cash Equivalents
Cash equivalents are short term, interest bearing, highly liquid investments withoriginal maturities of three months or less, unless the investments are held formeeting restrictions of a capital or endowment nature.
The Organization maintains all of its cash, aside from petty cash, in a financial
institution. The financial institution is FDIC insured up to $250,000 per depositor.
At times, the Organization’s cash balance may exceed the FDIC’s insured limits.
This exposes the Organization to potential risk of loss in the event of the financial
institution becomes insolvent.
Contributions Receivable
Contributions receivable are unconditional promises to give that are recognized
as contributions when the promise is received. Contributions receivable that are
expected to be collected in less than one year are reported at net realizablevalue. Contributions receivable that are expected to be collected in more than
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KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2021
NATURE OFORGANIZATIONAND
SUMMARY OF
SIGNIFICANTACCOUNTINGPOLICIES(continued):

one year are recorded at fair value at the date of promise. That fair value iscomputed using a present value technique applied to anticipated cash flows.
Amortization of the resulting discount is recognized as additional contribution
revenue. The allowance for uncollectable contributions receivable is determinedbased on management’s evaluation of the collectability of individual promises.
Promises that remain uncollected more than one year after their due dates are
written off unless the donors indicate that payment is merely postponed.
Property and Equipment
Land, buildings, property and equipment are reported in the statement of financial
position at cost, if purchased, and at fair value at the date of donation, if donated.
All land and buildings are capitalized. Equipment is capitalized if it has a cost of$3,000 or more and a useful life when acquired of more than one year. Repairs
and maintenance that do not significantly increase the useful life of the asset are
expensed as incurred. Depreciation is computed using the straight-line method
over the estimated useful lives of the assets.
Revenue
Contributions are recognized as support when received or when evidenced by awritten promise to give. Conditional contributions are recognized when theconditions have been substantially met. Contributions are considered to bewithout donor restrictions unless specifically restricted by the donor for time or
purpose.
Grant revenue is recognized when the Organization has substantially met its
obligation to be entitled to the benefits represented by the revenue. Costreimbursement grants are recognized as revenue when the related expenses are
incurred. In the event a grant stipulates performance measures, revenue isconsidered earned when the performance measures have been completed.
The Organization reports contributions and grants as revenue and net assets withdonor restrictions if they are received with donor stipulations as to their use
and/or time. When a donor restriction expires, that is, when a stipulated time
restriction ends or purpose restriction is accomplished, net assets with donor
restriction are released and reclassified to net assets without donor restrictions inthe statement of activities. Gains or losses on investments are reported asincreases or decreases in net assets without donor restrictions unless their use isrestricted by donors or by law. Contributions, grants, investment income, andconditional contributions having donor stipulations which are satisfied in the
period the gift is received are recorded as revenue and net assets without donor
restrictions.
Foreign Currency
Assets and liabilities denominated in foreign currencies are translated into U.S.
dollars, the reporting currency at exchange rates in effect at the consolidated
statement of financial position date, and revenue and expenses are translated at
rates which approximate those in effect on transactions dates. When relevant, nettransaction and translation gains and losses are included as foreign currency
exchange gain or loss in the accompanying statement of activities.
Gifts-in-Kind (Non-Cash Contributions)
The Organization periodically receives contributions in a form other than cash orinvestments. If the Organization receives a non-cash contribution, the contributed
asset is recognized as an asset at its estimated fair value at the date of gift,provided that the value of the asset and its estimated useful life meets the-6-

KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2021
NATURE OFORGANIZATIONAND
SUMMARY OF
SIGNIFICANTACCOUNTINGPOLICIES(continued):

Organization's capitalization policy. Donated supplies are recorded ascontributions at the date of gift and as expenses when the donated items areplaced into service or distributed.
Volunteer Services
The volunteer services the Organization receives are essential to helping fulfill its
mission. Although substantial, these services do not meet the criteria forrecording as revenue and expense under accounting principles generally
accepted in the United States of America.
Functional Allocation of Expenses
The Organization allocates expenses on a functional basis among its various
programs and supporting services. Expenses that can be identified with a specificprogram or supporting service are reported accordingly. Other expenses that arecommon to several functions are allocated by various statistical bases which
attribute the cost to functional categories. Statistical bases utilized include square
footage, occupied by business units and estimated time and effort supporting
other functions.
Performance Indicator
The statement of activities includes change in net assets from operations as theperformance indicator.
Income Taxes
The Organization is a not-for-profit organization that is exempt from federal
income taxes under Section 501(c)(3) of the Internal Revenue Code, except on
net income derived from unrelated business activities. At December 31, 2021, theOrganization has determined that no income taxes are due for its activities.
Accordingly, no provision for income taxes has been recorded in theaccompanying financial statements. Management annually reviews its tax
positions and has determined that there are no material uncertain tax positions
that require recognition in the financial statements.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities at the dateof the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Subsequent EventsThe Organization has evaluated subsequent events through November 15, 2022,
the date these financial statements were available to be issued.

2.

FAIR VALUE
The framework for measuring fair value provides a fair value hierarchy that
MEASUREMENTS: prioritizes the inputs to valuation techniques used to measure fair value. The
hierarchy gives the highest priority to unadjusted quoted prices in active markets
for identical assets or liabilities (Level 1) and the lowest priority to unobservable
inputs (Level 3). The three levels of the fair value hierarchy under FASB ASC 820
are described as follows:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices for-7-

KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2021
FAIR VALUE
MEASUREMENTS(continued):

identical assets or liabilities in active markets that the Organization has the ability
to access.
Level 2: Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly, such as:Quoted prices for similar assets or liabilities in active markets;
Quoted prices for identical or similar assets or liabilities in inactive
markets;
Inputs other than quoted prices that are observable for the asset or
liability;
Inputs that are derived principally from or corroborated by observable
market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be
observable for substantially the full term of the asset or liability.
Level 3: Inputs to the valuation methodology are unobservable and significant to
the fair value measurement.
When available, the Organization measures fair value using level 1 inputs
because they generally provide the most reliable evidence of fair value. However,level 1 inputs are not available for many of the assets and liabilities that a not-forprofit organization is required to measure at fair value (for example, unconditional
promises to give and in-kind contributions). The primary uses of fair value
measures in the Organization’s financial statements are the recurring
measurement of investments.
Mutual Funds consist of investments in securities that are freely tradable andlisted on major securities exchanges at their last reported sales price as of thevaluation date. To the extent these securities are actively traded and valuation
adjustments are not applied, they are categorized in Level 1 of the fair value
hierarchy. Securities traded on inactive markets or valued by reference to similar
instruments are generally categorized in Level 2 of the fair value hierarchy.
There were no significant transfers between the levels during the year. The
following table summarizes the levels in the fair value hierarchy of theOrganization's investments at December 31, 2021:

Mutual funds – bonds
Mutual funds – stocks
Total investments

3.

GRANTS:

Level 1
$ 458,802
114,700$ 573,502

In September of 2021, the Organization received a grant from First Sentier
Investors totaling $209,200 to provide COVID-19 relief work in Indonesia. Funds
from the grant may only be used for COVID-19 relief purposes related toprevention, emergency response, coordination and livelihood support. During2021, all the funds were used for these purposes.

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KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2021
4.

LIQUIDITY AND
AVAILABILITY:

The following represents the Organization's financial assets available for general
expenditure at December 31, 2021:
Cash
Investments
Accounts receivable
Prepaid expenses and other assets
Total financial assets available to meet general
expenditures over the next twelve months$

230,722573,502
100
1,168

$

805,492

The Organization manages its liquidity and reserves following three guiding
principles: operating within a prudent range of financial soundness and stability,
maintaining adequate liquid assets to fund near-term operating needs andmaintaining sufficient reserves to provide reasonable assurance that long-term
obligations will be discharged. The Organization endeavors to structure its
financial assets to be available and liquid as its general expenditures, liabilities,
and other obligations become due. During the year ended December 31, 2021,
the level of liquidity and reserves was managed within the policy requirements.

5.

CONCENTRATIONS:For the year ended December 31, 2021, three donors’ contributions accounted
for approximately 50% of the Organization’s donations.
For the year ended December 31, 2021, all of the grants were made to
Yayasan Kopernik in Indonesia.
The Organization invests in various investment securities. Investment securities
are exposed to various risks, such as interest rate, market, and credit risks.
Because of the level of risk associated with certain investment securities, it is atleast reasonably possible that changes in the values of investment securities will
occur in the near term and that such changes could materially affect amounts
reported in the financial statements.

6.

CORONAVIRUS
PANDEMIC:The COVID-19 pandemic (COVID-19) has resulted in significant volatility inthe global economy and led to a dramatic reduction in economic activity
worldwide. The pandemic could have a continued adverse impact on
economic and market conditions, including business and financial services
disruption. The full impact of COVID-19 on the Organization’s operations will
depend on future developments, such as the ultimate duration and scope of
the pandemic and how quickly normal economic conditions resume.
Government-sponsored liquidity or stimulus programs in response to COVID19 may not be available to the Organization or may be insufficient to address
the full impact of the pandemic. Accordingly, the ultimate impact on the
Organization’s results of operations, financial condition and liquidity cannot be
determined at this time.

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KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2021
CORONAVIRUS
PANDEMIC(continued):

Additionally, the risk of further spreading of COVID-19 has led to significant
uncertainty and volatility in the financial markets and disruption to the global
economy, the consequences of which are currently unpredictable. Certain of
the Organization’s investments are likely to have exposure to businesses that,as a result of COVID-19, experience a slowdown or temporary suspension inbusiness activities. These factors, as well as any restrictive measuresinstituted in order to prevent or control a pandemic or other public health crisis,such as the one posed by COVID-19, could have a material and adverse
effect on the Organization’s investments.

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