KopernikSolutions, Inc.
Financial Statements as of and for theYear Ended December 31, 2012, andIndependent Auditors’ Report

KOPERNIK SOLUTIONS, INC.
TABLE OF CONTENTSPageINDEPENDENT AUDITORS’ REPORT

1–2

FINANCIAL STATEMENTS AS OF AND FOR THE
YEAR ENDED DECEMBER 31, 2012
Statement of Financial Position

3

Statement of Activities

4Statement of Cash Flows5

Notes to Financial Statements

6–7

INDEPENDENT AUDITORS’ REPORTTo the Board of Directors ofKopernik Solutions, Inc.:
We have audited the accompanying financial statements of Kopernik Solutions, Inc. (“Kopernik”), which
comprise the statement of financial position as of December 31, 2012, and the related statements ofactivities, 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 orerror.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits 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 combined financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe combined financial statements. The procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the combined financial statements, whether due tofraud or error. In making those risk assessments, the auditor considers internal control relevant to theFirm’s preparation and fair presentation of the financial statements in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Firm’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 thecombined financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of Kopernik as of December 31, 2012, 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 UnitedStates of America.

October 2, 2013

-2-KOPERNIK SOLUTIONS, INC.
STATEMENT OF FINANCIAL POSITIONDECEMBER 31, 2012ASSETS
CASH$ 41,017

GRANTS RECEIVABLE

400,000

PREPAID EXPENSES

19,800Total current assets

460,817

CAPITAL ASSETS — Net

23,832TOTAL ASSETS$ 484,649

LIABILITIES AND NET ASSETSLIABILITIES — Accrued expenses$ 22,967

Total liabilities

22,967NET ASSETS —Unrestricted net assets
Temporarily restricted net assets

61,682400,000
461,682

TOTAL LIABILITIES AND NET ASSETS$ 484,649

See notes to financial statements.

-3-KOPERNIK SOLUTIONS, INC.
STATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31, 2012

REVENUES:
Contributions:
Corporate
Individuals
Foundations and trusts

Unrestricted

Temporarily
Restricted$81,171
114,12137,688$ 400,000$ 481,171
114,12137,688232,980

400,000

632,980

Product sales
In-kind contributions
Other

53,596
41,392
29,264

Total revenue

357,232

EXPENSES:
Fundraising costs
Program costs
General and administrative expenses

Total

53,596
41,392
29,264400,000

32,319421,384
108,686

757,232
32,319421,384
108,686

Total expenses

562,389-562,389

INCREASE IN NET ASSETS(205,157)

400,000

194,843

NET ASSETS — Beginning of year

266,839NET ASSETS — End of year

$See notes to financial statements.

-4-

61,682

266,839$ 400,000$ 461,682

KOPERNIK SOLUTIONS, INC.
STATEMENT OF CASH FLOWSFOR THE YEAR ENDED DECEMBER 31, 2012

CASH FLOWS FROM OPERATING ACTIVITIES —Changes in net assets
Reconciliation of net assets to net cash used in operating activities:
Depreciation and amortization
Changes in assets and liabilities:
Increase in prepaid expenses
Increase in receivables
Increase in accrued expenses$ 194,843
6,959(9,823)(395,691)
14,509Net cash used in operating activities(189,203)

CASH FLOWS USED IN INVESTING ACTIVITIES — Additions tocapital assets(2,221)

NET CHANGE IN CASH

(191,424)

CASH — Beginning of year

232,441

CASH — End of year$

See notes to financial statements.

-5-41,017

KOPERNIK SOLUTIONS, INC.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2012

1.

ORGANIZATION
Kopernik Solutions, Inc. (“Kopernik”), is a not-for-profit corporation organized under the laws of theState of New York. Kopernik has been approved by the Internal Revenue Service (IRS) undersection 501(c)(3) of the IRS code. Kopernik organizes events in order to solicit funds that are used toprovide free and clean energy to third world countries that are in need of such assistance.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of Presentation — The accompanying financial statements of Kopernik have been prepared on
the accrual basis of accounting in conformity with accounting principles generally accepted in theUnited States of America.
Kopernik accounts for and reports on its net assets based upon the existence or absence of donor
imposed restrictions. Temporarily restricted net assets are those whose donor-imposed restrictions as toa specific purpose or time have not been met. Permanently restricted net assets are those with donorimposed restrictions on the corpus of the gifts specifying they be maintained in perpetuity. Unrestricted
net assets include all resources that are not subject to donor-imposed restrictions. Currently, there are nopermanently restricted net assets.
Kopernik has elected to present a statement of financial position (“balance sheet”) that sequences assets
and liabilities based on their relative liquidity.
Use of Estimates — The preparation of financial statements in conformity with accounting principles
accepted in the United States of America requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results could differ from thoseestimates. Management considers these differences as immaterial and accordingly do not impact theoverall financial condition or results of operations reported on these financial statements
Concentration of Credit Risk — The funds of Kopernik are primarily deposited in banks that are
insured by the Federal Deposit Insurance Corporation (FDIC). At certain times, deposits may exceed
FDIC insured limits. In addition, there are funds in accounts outside of the United States that are notinsured by the FDIC or a similar organization.
Contributions — Contributions are recognized at the time a donor makes an unconditional pledge orpromise.
Income Taxes — As described in Note 1, Kopernik is organized under Section 501(c)(3) of the Internal
Revenue Code (IRC) and is exempt from all federal, state, and local taxes. Accordingly no provision forincome taxes is required.
Uncertain Tax Positions — Kopernik complies with the requirements to review its operation toascertain whether or not they have taken any uncertain tax positions. This review has not resulted in therecognition of any tax liabilities.

-6-Depreciation and Amortization — Depreciation and amortization are computed using the straight-line
method based upon estimated useful lives, generally five to seven years for office furniture and fixtures,computers and automotive, and over the remaining life of the lease for leasehold improvements.
3.

CAPITAL ASSETS — NET
Capital assets at December 31, 2012, consist of the following:
Office furniture and equipment
Computers
Leasehold improvements$ 8,249
23,4197,464
39,132Less accumulated depreciation

15,300$ 23,832

Depreciation and amortization expense for the year ended December 31, 2012, was $3,964 and $2,995,respectively.
4.

TAXES
Kopernik qualifies as a tax-exempt organization under Section 501(c)(3) of the IRC and, accordingly, is
not subject to federal income taxes.

5.

GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses at December 31, 2012, consist of the following:
Depreciation expense
Amortization expense
Office maintenance cost
Telephone expense
Rent
Professional fees
Bank charges and fees
PostageSupplies
Training and development
Working/business visa costs
Website maintenanceIT connection/communication costs
Miscellaneous

$

3,964
2,995
2,107
7,557
7,572
40,305
5,874
2,341
5,201
1,606
6,321
4,379
8,416
10,048$ 108,686

6.

SUBSEQUENT EVENTS
Subsequent events have been evaluated through October 2, 2013, the date on which the financialstatements were available to be issued.
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