KOPERNIK SOLUTIONS
Financial Statements
December 31, 2019

KOPERNIK SOLUTIONS
Table of Contents
December 31, 2019

Independent Accountants’ Review Report(i)Financial Statements:
Statement of Financial Position

1

Statement of Activities

2Statement of Functional Expenses

3

Statement of Cash Flows4

Notes to Financial Statements

5 – 12

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INDEPENDENT ACCOUNTANTS’ REVIEW REPORTTo the Board of Directors ofKopernik Solutions
We have reviewed the accompanying financial statements of Kopernik Solutions (a nonprofit organization),
which comprise the statement of financial position as of December 31, 2019, and the related statements ofactivities, functional expenses and cash flows for the year then ended, and the related notes to the financial
statements. A review includes primarily applying analytical procedures to management’s financial data andmaking inquiries of management. A review is substantially less in scope than an audit, the objective of which isthe 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 inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation, and maintenance of internal control relevant to the preparation and fair presentation offinancial 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 on Standards for
Accounting and Review Services promulgated by the Accounting and Review Services Committee of the
AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reportingwhether we are aware of any material modifications that should be made to the financial statements for them to
be in accordance with accounting principles generally accepted in the United States of America. We believethat the results of our procedures provide a reasonable basis for our conclusion.
Accountants’ Conclusion
Based on our review, we are not aware of any material modifications that should be made to theaccompanying financial statements in order for them to be in accordance with accounting principles generally
accepted in the United States of America.
Respectfully submitted,

Fasten Halberstam LLP
New York, New York
October 22, 2020

(i)

KOPERNIK SOLUTIONSStatement of Financial Position
December 31, 2019ASSETS
Current assets
Cash
Investments
Accounts receivable
Prepaid expenses and other assets$

Total current assets

68,757
1,672,358
20,690600
1,762,405

Total assets$

1,762,405

LIABILITIES AND NET ASSETS
Current liabilities
Accounts payable and accrued expenses

$

7,664

Total current liabilities

7,664

Total net assets without donor restrictions
Total liabilities and net assets

1,754,741$

See Accompanying Notes and Independent Accountants' Review Report-1-

1,762,405

KOPERNIK SOLUTIONSStatement of Activities
For the Year Ended December 31, 2019

Without
Donor
Restrictions
Revenues
GrantsGeneral contributions
Program service revenue
In-kind support
Interest income
Total revenues$

With Donor
Restrictions

350,000 $29,16020,690
11,25035
411,135

-

Total
$

350,000
29,16020,690
11,25035
411,135

Expenses
Program services
Supporting services
Management and generalFundraising
Total supporting services

59,164-

59,164

126,066
2,813
128,879-

126,066
2,813
128,879

Total expenses

188,043-

188,043

Change in net assets from operations

223,092-

223,092

Other income
Net investment return

175,895-

175,895

Change in net assets

398,987-

398,987

1,355,754-

1,355,754

1,754,741 $-Net assets - beginning of year
Net assets - end of year$$

See Accompanying Notes and Independent Accountants' Review Report-2-

1,754,741

KOPERNIK SOLUTIONSStatement of Functional Expenses
For the Year Ended December 31, 2019

Supporting Services
ProgramServices
GrantsAdvertising
Conference and travel
Depreciation
License, dues and fees
Information technology
Office expenses
Officers' compensation and benefits
Professional fees
Expenses before in-kind$

Services (in-kind)
Total expenses$

Management
and General

22,135 $4,993
96
20,69047,914

$
7,847
1,165
1,072
3,136
5,081
94,587
13,178126,066

11,250-59,164 $126,066 $Fundraising

Total
Supporting
Services

$
2,653
160
2,813
2,813 $

See Accompanying Notes and Independent Accountants' Review Report
-3-

Total

$
2,653
7,847
1,165
1,072
3,296
5,081
94,587
13,178
128,879

22,135
2,653
7,847
1,165
6,065
3,392
5,081
115,277
13,178
176,793-

11,250128,879 $

188,043

KOPERNIK SOLUTIONSStatement of Cash Flows
For the Year Ended December 31, 2019

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 loss (gain) on investments
Depreciation
Changes in operating assets and liabilities
Accounts receivable
Prepaid expenses and other assets
Accounts payable and accrued expenses
Grants payable$

398,987(175,895)
1,165(14,440)
6,443(3,632)(5,262)

Net cash provided by operating activities

207,366

Cash flows from investing activities
Proceeds from sales of investments
Purchase of investments

100,000(300,000)

Net cash used in investing activities(200,000)

Net increase in cash, cash equivalents and restricted cash

7,366

Cash, cash equivalents and restricted cash - beginning of year

61,391

Cash, cash equivalents and restricted cash - end of year$

See Accompanying Notes and Independent Accountants' Review Report-4-

68,757

KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2019
1.

PRINCIPAL
Nature of Organization
BUSINESS ACTIVITY Kopernik Solutions (the “Organization”) is a not-for-profit organization incorporated on
AND
September 18, 2009 in New York State. The Organization was formed for the
SUMMARY OF
charitable purpose of providing developmental assistance to poor and disadvantaged
SIGNIFICANT
communities in the world through the use of technology or innovative products,
ACCOUNTING
services and solutions designed to improve the quality of their lives.
POLICIES:
Support for the Organization’s programs is derived from foundation grants andgeneral contributions. The Organization is exempt from federal income taxes as anorganization (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 Code requirements.
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.
New Accounting Pronouncements
We have considered all new accounting pronouncements and have concluded that
there are no new pronouncements that may have a material impact on our results ofoperations, financial condition, or cash flows, based on current information, except for
those listed below.
During the year, the Organization adopted ASU No. 2016-18, Statement of Cash
Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires that a statementof cash flows explain the change during the period in the total of cash, cash
equivalents, and amounts generally described as restricted cash or restricted cash
equivalents. Therefore, amounts generally described as restricted cash and restrictedcash equivalents should be included with cash and cash equivalents when reconcilingthe beginning-of-period and end-of-period total amounts shown on the statement ofcash flows. Upon assessment of the cash flow issues subject to amendment, theadoption of ASU 2016-18 did not have a material impact on the Organization’s
statement of cash flows.
In May 2014, the FASB issued a new revenue recognition standard entitled Revenue
from Contracts with Customers under ASU 2014-09. The core principle of the new
guidance is that an entity should recognize revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services. New
disclosures about the nature, amount, timing and uncertainty of revenue and cash
flows arising from contracts with customers are also required. The standard iseffective for nonpublic entities for annual reporting periods beginning after December
15, 2019, with early adoption permitted. Entities must adopt the new guidance using
one of two retrospective application methods. Although the Organization has not yet
adopted ASU 2014-09, it is currently evaluating the standard to determine the impact
of its adoption on the financial statements. In accordance with ASU 2020-05, theOrganization has deferred the adoption of ASU 2014-09 until the following year.

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Notes to Financial Statements
December 31, 2019
PRINCIPAL
During 2019, the Organization adopted ASU No. 2018-08, Clarifying the Scope and
BUSINESS ACTIVITY the Accounting Guidance for Contributions Received and Contributions Made, toANDclarify and improve the scope and the accounting guidance for contributions received
SUMMARY OF
and contributions made. The amendments in this ASU should assist entities in (1)SIGNIFICANT
evaluating whether transactions should be accounted for as contributions
ACCOUNTING(nonreciprocal transactions) within the scope of ASC Topic 958, Not for Profit Entities,
POLICIES
or as exchange (reciprocal) transactions subject to other guidance and (2)(continued):determining whether a contribution is conditional. The adoption of this standard did
not materially impact the Organization’s result of operations or financial position.
Net Assets
Net assets and revenues, and gains and losses are classified based on the existenceor absence of donor-imposed restrictions. Accordingly, the net assets of theOrganization 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 by donors,
and grantors. Some donor restrictions are temporary in nature; those restrictions will
be met by actions of the Non-Profit 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.
Contributions and grants received with donor restrictions whose restrictions are met in
the same reporting period they are received are generally reported as support without
donor restrictions in the same reporting year.
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.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are initially recorded at fair value upon the performance ofservices and are stated net of allowances for uncollectible accounts which represent
estimated losses resulting from the inability of customers to make the required
payments. Accounts receivable are charged off against allowances after a designatedperiod of collection efforts. Subsequent cash recoveries are recognized as income in
the period when they occur. The Organization considers the full amount ofreceivables to be collectible and has not established an allowance for uncollectibility.

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KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2019
PRINCIPAL
Property and Equipment
BUSINESS ACTIVITY Land, buildings, property and equipment are reported in the statement of financial
AND
position at cost, if purchased, and at fair value at the date of donation, if donated. All
SUMMARY OF
land and buildings are capitalized. Equipment is capitalized if it has a cost of $3,000
SIGNIFICANT
or more and a useful life when acquired of more than 1 year. Repairs and
ACCOUNTING
maintenance that do not significantly increase the useful life of the asset are
POLICIES
expensed as incurred. Depreciation is computed using the straight-line method over(continued):
the estimated useful lives of the assets.
Revenue
Revenue is reported as increases in net assets without donor restrictions unless its
use is limited by donor-imposed restrictions. Expenses are reported as decreases in
net assets without donor restrictions. If an expense is incurred for a purpose for which
net assets with donor restrictions are available, a donor-imposed restriction is fulfilled
to the extent of the expense incurred. When a donor restriction expires, that is, whena stipulated time restriction ends or purpose restriction is accomplished, net assets
with donor restrictions are reclassified to net assets without donor restrictions andreported as release from restrictions in the statement of activities. Gains or losses oninvestments are reported as increases or decreases in net assets without donor
restrictions unless their use is restricted by donors or by law.
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 Organization's
capitalization policy. Donated supplies are recorded as contributions at the date of gift
and as expenses when the donated items are placed into service or distributed.
Advertising Costs
Advertising costs are expensed as incurred. Advertising expense for the year ended
December 31, 2019 amounted to $2,653.
Expense Recognition and Allocation
The cost of providing the Organization's programs and other activities is summarized
on a functional basis in the statement of activities and statement 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 to multiple
functions have been allocated among the various functions benefited. General andadministrative expenses include those costs that are not directly identifiable with any
specific program, but which provide for the overall support and direction of theOrganization. Fundraising costs are expensed as incurred, even though they may
result in contributions received in future years. The Organization generally does not-7-

KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2019
PRINCIPAL
conduct its fundraising activities in conjunction with its other activities.
BUSINESS ACTIVITYAND
Income Taxes
SUMMARY OF
The Organization is a not-for-profit organization that is exempt from federal income
SIGNIFICANT
taxes under Section 501(c)(3) of the Internal Revenue Code, except on net income
ACCOUNTING
derived from unrelated business activities. At December 31, 2019, the Organization
POLICIES
has determined that no income taxes are due for its activities. Accordingly, no(continued):
provision for income taxes has been recorded in the accompanying 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 ofassets and liabilities and disclosure of contingent liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Reclassifications
Certain balances and amounts in the prior year financial statements have been
reclassified to conform to the current period financial statement presentation. These
reclassifications have no effect on previously reported net income.
Subsequent EventsThe Organization has evaluated subsequent events through October 22, 2020, thedate these financial statements were available to be issued. With the exception of
those matters disclosed below, there were no material subsequent events that
required recognition or additional disclosure in these financial statements.

2.

RESTRICTED NET
ASSETS:The Organization had no net assets with donor restrictions at December 31, 2019.
The details for the net assets for the year ending December 31, 2019, are as follows:

Name
Exxonmobil
Foundation
Total

3.

Restriction
Details
Funds
restricted for
purposeBalance
Beginningof Year

Net Assets
with Donor
Restrictions

Net Assets
Releasedfrom
Restrictions

BalanceEnd of Year$-$ 350,000$ (350,000)

$

-

$

-

$ 350,000$ (350,000)$-

IN-KIND SERVICES: In-kind contributions are reflected as contributions at their fair value as of the date of
donation and are reported as support without restrictions unless explicit donor
stipulations specify how donated assets must be used. For the year ending
December 31, 2019, the Organization benefited from donated technology services
which were valued by the Organization at $11,250. The donated services were
utilized in the Organization’s program services.

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KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2019
4.

VOLUNTEERSERVICES:

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 and expense under accounting principles generally accepted in the UnitedStates of America.

5.

FAIR VALUE
MEASUREMENTS:

The framework for measuring fair value provides a fair value hierarchy that prioritizes
the inputs to valuation techniques used to measure fair value. The hierarchy gives thehighest 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 threelevels 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
identical assets or liabilities in active markets that the Organization has the ability toaccess.
Level 2: Inputs other than quoted prices included within Level 1 that are observablefor 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 thefair 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-for-profit
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 and listed on
major securities exchanges at their last reported sales price as of the valuation date.
To the extent these securities are actively traded and valuation adjustments are notapplied, they are categorized in Level 1 of the fair value hierarchy. Securities tradedon inactive markets or valued by reference to similar instruments are generally
categorized in Level 2 of the fair value hierarchy.

-9-KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2019
FAIR VALUE
MEASUREMENTS(continued):

There were no significant transfers between the levels during the year. The following
table summarizes the levels in the fair value hierarchy of the Organization's
investments at December 31, 2019:

Mutual funds – bonds
Mutual funds – stocks
Total investments

Total$1,337,886
334,472$1,672,358

Level 1
$1,337,886
334,472$1,672,358

Level 2$$

Level 3-$$-The composition of the investment return reported in the statement of activities is asfollows:
Dividend income$ 44,839
Net realized gains (losses)
4,585
Net unrealized gains (losses)
126,471
Net investment return$ 175,895

6.

AFFILIATED
ORGANIZATIONS:

Kopernik Solutions works with affiliated organizations in Indonesia and Japan, which
are governed by separate boards of directors in those countries. These affiliates,
although not commonly controlled, share an overall mission to reduce poverty
through the distribution of simple technology to people in need in developing
countries.
Yayasan Kopernik is registered as an Indonesian Foundation (Yayasan) with theIndonesian Ministry of Law and Human Rights. Kopernik Japan is registered as a
General Incorporated Association in Japan. Neither affiliate is controlled by, or incontrol of, the Organization and therefore, the accompanying financial statements do
not include the accounts of Yayasan Kopernik or Kopernik Japan. Transactions with
Yayasan Kopernik and Kopernik Japan are included in program services on thestatement of activities.

7.

LIQUIDITY AND
AVAILABILITY:

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 otherobligations become due. During the year ended December 31, 2019, the level ofliquidity and reserves was managed within the policy requirements.

- 10 -

KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2019
LIQUIDITY AND
AVAILABILITY(continued):

8.

RELATED PARTY
TRANSACTIONS:

The following represents the Organization's financial assets at December 31, 2019:
Financial assets at year-end:
Cash
Investments
Accounts receivable
Prepaid expenses and other assets
Total financial assets available to meet general
expenditures over the next twelve months$

68,757
1,672,358
20,690600$

1,762,405

The Organization’s Indonesian affiliate, Yayasan Kopernik, is a legally separate
entity and not under common control. The Organization has made grants to
Yayasan to further the Organization’s mission. Grants in the amount of $22,135
were made to Yayasan during the year ending December 31, 2019.
In 2019, the Organization entered into a service agreement with PT Kopernik, arelated party with common directors. During 2019, the Organization earned
income of $20,690 from PT Kopernik, and the total amount was outstanding at
year-end.

9.

CONCENTRATIONS: As of December 31, 2019, PT Kopernik, a related party, accounted for 100% of
total accounts receivable.
For the year ended December 31, 2019, one donor’s contribution accounted forapproximately 17% of the Organization’s donations.
For the year ended December 31, 2019, substantially all of the grants were madeto Yayasan Kopernik in Indonesia.

10. SUBSEQUENTIn 2020, the Organization liquidated $750,000 of its investments and transferred
EVENT – TRANSFER the funds to Yayasan Kopernik.
OF FUNDS:

11. SUBSEQUENTEVENT –
CORONAVIRUS
PANDEMIC:In December 2019, an outbreak of a novel strain of coronavirus (COVID-19)
originated in Wuhan, China and has since spread to other countries, including the
U.S. On March 11, 2020, the World Health Organization characterized COVID-19
as a pandemic. In addition, multiple jurisdictions in the U.S. have declared a stateof emergency. It is anticipated that these impacts will continue for some time.
There has been no immediate impact to the Organization’s operations. Future
potential impacts may include disruptions or restrictions on the Organization’s
employees’ ability to work and donors’ ability to donate. Changes to the operating
environment may increase operating costs. The future effects of these issues are
unknown.
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- 11 -

KOPERNIK SOLUTIONS
Notes to Financial Statements
December 31, 2019
SUBSEQUENTEVENT –
CORONAVIRUS
PANDEMIC(continued):

Organization’s investments are likely to have exposure to businesses that, as aresult of COVID-19, experience a slowdown or temporary suspension in businessactivities. These factors, as well as any restrictive measures instituted in order toprevent 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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