Kopernik Solutions

Financial Statements & Audit Report
For the Year Ended December 31, 2014

TABLE OF CONTENTS

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Independent Accountant’s Audit Report …………….…….……….......................... 1
Financial Statements:
Statement of Financial Position ............................................................................. 2
Statement of Activities ........................................................................................... 3
Statement of Cash Flows ...................................................................................... 4
Statement of Functional Expenses ........................................................................ 5
Notes to Financial Statements ............................................................................... 6

155 Bay Ridge Avenue - Brooklyn - NY - 11220
www.JVCPAPLLC.com(718) 491-1241

Independent Auditor’s Report
To the Board of Directors
Kopernik Solutions
We have audited the accompanying financial statements of Kopernik Solutions, a Not-for-Profit
Corporation, which comprise the statement of financial position as of December 31, 2014, and the related
statements of activities, functional expenses, and cash flows for the year then ended, and the related
notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fairpresentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the organization as of December 31, 2014, and the changes in its net assets and its
cash flows for the year then ended in accordance with accounting principles generally accepted in the
United States of America.

Brooklyn, New York
September 25, 2015
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Kopernik Solutions
Statement of Financial Position
December 31, 2014ASSETSCash and cash equivalents$

113,788

Grants receivable

600,000

Accounts receivable

6,372

Prepaid expenses

5,089

Fixed assets (net)409

Total Assets$

725,658$

27,813

LIABILITIES & NET ASSETS

Accounts payable and accrued expenses
Deferred revenue

79,619Total Liabilities

107,432

Net Assets
Unrestricted

18,226

Temporarily restricted

600,000

Permanently restricted-

Total Net Assets
Total Liabilities and Net Assets

The accompanying notes are an integral part of these financial statements

618,226$

725,658

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Kopernik Solutions
Statement of Activities
For year ended December 31, 2014
Temporarily
Restricted

Unrestricted

Permanently
Restricted

Total

Revenues and other support
Government grants$

40,000

$

-

$

-

$

40,000ENERGIA program grant

45,558--45,558General contributions

228,567

600,000-

828,567

Program service revenue

64,359--64,359Interest income

99

-

-

99

In-kind support

13,570--13,570Total revenues and other support

392,153

600,000-

992,153

Satisfaction of time and purpose restrictions

400,000(400,000)--

Total revenues, other support and net assets
released from restrictions

792,153

200,000-

992,153

Program services

930,186--

930,186

Management and general

23,814--

23,814

Fundraising40,124--

40,124

Total expenses

994,124--

994,124

Changes in net assets(201,971)

200,000-(1,971)

Net assets at beginning of year

220,197

400,000-

620,197

18,226$ 600,000-$ 618,226

Net assets released from restrictions

Expenses

Net assets at end of year$

The accompanying notes are an integral part of these financial statements

$

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Kopernik Solutions
Statement of Cash FlowsFor year ended December 31, 2014

CASH FLOW FROM OPERATING ACTIVITIES:

Changes in Net Assets$

Adjustments to reconcile change in net assets to net cash
provided (used) in operating activities:
Depreciation(1,971)

1,147

Changes in operating assets and liabilities
Decrease/(increase) in assets:
Grants receivable(200,000)

Accounts receivable(1,889)Prepaid expenses

11,500(Decrease)/increase in liabilties:
Accounts payable and accrued expenses

1,100

Deferred revenue

79,619Net cash provided by/(used in) operating activities(110,494)

CASH FLOW FROM INVESTING ACTIVITIES:

Decrease in fixed assets

21,402-

Net cash provided by/(used in) investing activities

21,402

CASH FLOW FROM FINANCING ACTIVITIES:

None

-

Net cash provided by/(used in) financing activities-

NET INCREASE IN CASH AND CASH EQUIVALENTS(89,092)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

202,880

CASH AND CASH EQUIVALENTS AT END OF YEAR$

113,788

SUPPLEMENTAL CASH FLOWS INFORMATION:

None

The accompanying notes are an integral part of these financial statements

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Kopernik Solutions
Statement of Functional Expenses
For year ended December 31, 2014

ProgramServices

Compensation and benefits$

Professional fees

114,643

Management
and GeneralFundraising

$

$

5,060

29,216

Total$

148,919-

10,215-

10,215

Professional development

6,911

-

-

6,911

Telephone and internet

-

1,511

-

1,511

Postage and delivery

-

1,303

-

1,303

License, dues and fees

-

125

-

125

Information technology

-

3,925

1,638

5,563

6,422

528

-

6,950

Promotion and marketing

-

-

2,479

2,479

Depreciation

-

1,147

-

1,147

Conference and travel

35,408-

6,791

42,199Technical assistance

27,336--27,336

Other program expenses

1,043

-

-

1,043

Grants724,853--

724,853

Expenses before in-kind

916,616

23,814

40,124

980,554

Services (in-kind)

13,570--13,570Service charges

Total Expenses$

930,186$

23,814$

40,124

The accompanying notes are an integral part of these financial statements$

994,124

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Kopernik Solutions
Notes to Financial Statements
December 31, 2014

Note 1 - Description of Organization
Kopernik Solutions (the “Organization) is a not-for-profit organization incorporated on
September 18, 2009 in New York State.
The organization's mission is to reduce poverty and suffering by connecting disadvantaged
people in developing world countries with life changing technologies. Through theorganization, a wide range of appropriate technologies, primarily in the areas of energy, waterand sanitation, have reached people in need in developing countries. Since inception theorganization has reached more than 140,000 people by facilitating the distribution of morethan 25,000 units of technology.
Support for the organization’s programs is derived from foundation grants and generalcontributions. The Organization is exempt from federal income taxes as an organization (nota 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 Code requirements.
Note 2 - Significant Accounting Policies
The organization prepares its financial statements on the accrual basis in accordance withgenerally accepted accounting principles promulgated in the United States of America (U.S.
GAAP) for not-for-profit organizations. The significant accounting and reporting policies usedby the organization are described below.
Net Assets: The financial statements report net assets and changes in net assets in threeclasses that are based upon the existence or absence of restrictions on use that are placedby its donors, as follows:
Unrestricted Net Assets: Net assets that are not subject to donor-imposed stipulations
and that may be expendable for any purpose in performing the primary objectives of
the Organization.
Temporarily Restricted Net Assets: Net assets that are subject to donor-imposed
stipulations that may or will be met either by actions of the Organization and/or thepassage of time. As the restrictions are satisfied, temporarily restricted net ass ets arereclassified to unrestricted net assets and reported in the accompanying financial
statements as net assets released from restrictions.
Permanently Restricted Net Assets: Net assets that are subject to donor-imposed
stipulations that neither expire by passage of time, nor can be fulfilled or removed byactions of the Organization.

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Kopernik Solutions
Notes to Financial Statements
December 31, 2014

All revenues and net gains are reported as increases in unrestricted net assets in thestatement of activities unless the use of the related resources is subject to tem porary or
permanent donor restrictions. All expenses and net losses other than losses on endowment
investments are reported as decreases in unrestricted net assets. The organization currently
has no endowments.
Cash Equivalents: Cash equivalents are short term, interest bearing, highly liquid investmentswith original maturities of three months or less, unless the investments are held for meeting
restrictions of a capital or endowment nature.
Contributions (Grants) Receivable: Unconditional promises to give that are expected to becollected within one year are recorded as grants receivable at net realizable value.
Unconditional promises to give that are expected to be collected in future years are recordedat the present value of their estimated future cash flows. If amounts become uncollectible,
they will be charged to operations when that determination is made.
Land, Buildings, Property and Equipment: Land, buildings, property and equipment arereported in the statement of financial position at cost, if purchased, and at fair value at thedate 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 1 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 estimateduseful lives of the assets.
Accounting for Contributions: Contributions, including unconditional promises to give, arerecognized when received. All contributions are reported as increases in unrestricted net
assets unless use of the contributed assets is specifically restricted by the donor. Amounts
received that are restricted by the donor to use in future periods or for specific purposes arereported as increases in either temporarily restricted or permanently restricted net assets,consistent with the nature of the restriction. Unconditional promises with payments due in
future years have an implied restriction to be used in the year the payment is due, and therefore are reported as temporarily restricted until the payment is due unless the contribution isclearly intended to support activities of the current fiscal year or is received with perma nent
restrictions. Conditional promises, such as matching grants, are not recognized until they
become unconditional, that is, until all conditions on which they depend are substantially met.
Contributions received with temporary restrictions that are met in the same reporting period
are reported as unrestricted support and increase unrestricted net assets.
Gifts-in-Kind (Non-Cash Contributions): The organization periodically receives contributions
in a form other than cash or investments. If the organization receives a non-cash
contribution, the contributed asset is recognized as an asset at its estimated fair value at thedate of gift, provided that the value of the asset and its estimated useful life meets theorganization's capitalization policy. Donated supplies are recorded as contributions at thedate of gift and as expenses when the donated items are placed into service or distributed.

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Kopernik Solutions
Notes to Financial Statements
December 31, 2014

Use of Estimates: The preparation of financial statements requires management to makeestimates and assumptions that affect the reported amounts of revenues and expenses
during the reporting period and the reported amounts of assets and liabilities at the date of
the financial statements. On an ongoing basis, the organization's management evaluates theestimates and assumptions based upon historical experience and various other factors andcircumstances. The organization's management believes that the estimates and assumptions
are reasonable; however, the actual results could differ from those estimates.
Expense Recognition and Allocation: The cost of providing the organization's programs andother activities is summarized on a functional basis in the statement of activities andstatement of functional expenses. Expenses that can be identified with a specific program or
support service are charged directly to that program or support service. Costs common tomultiple functions have been allocated among the various functions benefited. General andadministrative expenses include those costs that are not directly identifiable with any specificprogram, but which provide for the overall support and direction of the organization.
Fundraising costs are expensed as incurred, even though they may result in contributions
received in future years. The organization generally does not conduct its fundraising
activities in conjunction with its other activities.
Tax Status: The organization is incorporated exempt from federal income taxation under
Section 501(c)(3) of the Internal Revenue Code (IRC), though it would be subject to tax onincome unrelated to its exempt purposes (unless that income is otherwise excluded by theIRC). The three prior periods are still open to audit for both federal and state purposes.
Contributions to the organization are tax deductible to donors under Section 170 of the IRC.
The organization is not classified as a private foundation. The organization recognizes the tax
effects from an uncertain tax position in the financial statements only if the position is “more likely-than-not” to be sustained if the position were to be challenged by a taxing authority.
Management has determined that the Organization has no uncertain tax positions that would
require financial statement recognition or disclosure.
Note 3 - Grants Receivable
Grants receivable at December 31, 2014 consist of a pledge for $600,000 from theExxonMobil Foundation that was subsequently received in January of 2015.

Note 4 - Fixed Assets
The details of fixed assets and useful life are as follows:
Website (5 Years)
Less accumulated depreciation
Net$ 9,830(9,421)
$
409

.
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Kopernik Solutions
Notes to Financial Statements
December 31, 2014

Note 5 - ENERGIA Grant
In September 2014, Kopernik entered into a cooperation agreement with The ENERGIAInternational Network on Gender and Sustainable Energy (part of ETC Foundation). Basedon the specifications, management has determined this agreement to a cost reimbursement
award. For grants determined to be cost reimbursement awards, grant revenue is recognized
as costs are incurred and funds received in excess of costs incurred are recorded as deferred
revenue. The total award amount is $585,000 and will fund the organization’s implementationof the Wonder Women East Indonesia Project, a project empowering women through clean
energy technology. The contract term is 36 months commencing on September 1, 2014 andending on August 31, 2017.
For the year ending the December 31, 2014 the details for the award are as follows:
Funds received
Project expenditures
Deferred revenue$125,177
45,558$79,619

Note 6 - Restricted Net Assets
On December 31, 2014, temporarily restricted net assets in the amount of $600,000 consistof grants receivable which are restricted for use in future years. The organization has no
permanently restricted net assets.
Note 7 - Major Contributor
During 2014 the Organization had one major contributor that accounted for approximately
60% of the Organization’s total contributions. Management believes that the Organization is
not exposed to any significant concentration risk in the near term.
Note 8 - In-kind Services
In-kind contributions are reflected as contributions at their fair value at date of donation andare reported as unrestricted support unless explicit donor stipulations specify how donatedassets must be used. For the year ending December 31, 2014, the Organization benefited
from donated technology services which were valued by the organization at $13,570. The
donated services were utilized in the Organization’s program services.
Note 9 - Affiliated Organizations
Kopernik Solutions works with affiliated organizations in Indonesia and Japan, which aregoverned by separate boards of directors in those countries. These affiliates, although notcommonly controlled, share an overall mission to reduce poverty through the distribution of
simple technology to people in need in developing countries.
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Notes to Financial Statements
December 31, 2014

Yayasan Kopernik is registered as an Indonesian Foundation (Yayasan) with the Indonesian
Ministry of Law and Human Rights. Kopernik Japan is registered as a General Incorporated
Association in Japan. Neither affiliate is controlled by the Organization and therefore theaccompanying financial statements do not include the accounts of Yayasan Kopernik or
Kopernik Japan. Transactions with Yayasan Kopernik and Kopernik Japan are included aspart of operations as program activities. See the note below – Related Party Transactions.

Note 10 - Related Party Transactions
The Organization’s Indonesian affiliate, Yayasan Kopernik, is a legally separate entity. The
Organization has made grants to Yayasan Kopernik to further the Organization’s mission.
Grants in the amount of $724,853 were made for the year ending December 31, 2014. The
Organization’s Japanese affiliate, Kopernik Japan, is a legally separate entity. The
Organization received grants from Kopernik Japan in the amount of $72,834.

Note 11 - Volunteer Services
The volunteer services the Organization receives are essential to helping fulfill its mission.
Although substantial, these services do not meet the criteria for recording as revenue andexpense under accounting principles generally accepted in the United States of America.
Note 12 - Contingencies
The Organization receives funds from a cost reimbursement contract that has a co-finance(matching) provision, which are subject to audit by the grantee. Management believes thesematters will not have a significant effect on the organization’s financial position.
Note 13 - Concentrations of Risk
The Organization maintains its cash deposits with quality financial institutions. Accounts atthese institutions are insured by the Federal Deposit Insurance Corporation up to limits set bylaw. As of December 31, 2014 there were no uninsured balances.
Note 14 - Subsequent Events
Subsequent events have been evaluated through September 25, 2015, which is the date thefinancial statements were available to be issued.

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