KopernikSolutions, Inc.
Financial Statements as of and for theYear Ended December 31, 2011, andIndependent Auditors’ Report

KOPERNIK SOLUTIONS, INC.
TABLE OF CONTENTSPageINDEPENDENT AUDITORS’ REPORT

1FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2011
Statement of Financial Position

2Statement of Activities

3

Statement of Cash Flows4

Notes to Financial Statements

5–6

Deloitte & Touche LLP
Two Jericho Plaza
Jericho, NY 11753-1683
USA
Tel: +1 516 918 7000
Fax: +1 516 827 3980
www.deloitte.com

INDEPENDENT AUDITORS’ REPORTTo the Board of Directors ofKopernik Solutions, Inc.:
We have audited the accompanying statement of financial position of Kopernik Solutions, Inc.
(“Kopernik”), as of December 31, 2011, and the related statements of activities, and cash flows for theyear then ended. These financial statements are the responsibility of Kopernik’s management. Ourresponsibility 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 includes consideration ofinternal control over financial reporting as a basis for designing audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Kopernik’sinternal control over financial reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonablebasis for our opinion.
In our opinion, such financial statements present fairly, in all material respects, the financial position ofKopernik at December 31, 2011, and the changes in its net assets and its cash flows for the year thenended in conformity with accounting principles generally accepted in the United States of America.

January 24, 2012

Member ofDeloitte Touche Tohmatsu

KOPERNIK SOLUTIONS, INC.
STATEMENT OF FINANCIAL POSITIONDECEMBER 31, 2011ASSETS
CASH$ 232,441

RECEIVABLE

4,309

PREPAID EXPENSES

9,977

Total current assets

246,727

CAPITAL ASSETS — Net

28,570TOTAL ASSETS$ 275,297

LIABILITIES AND NET ASSETSLIABILITIES —Accrued expenses$8,458

Total liabilities

8,458

NET ASSETS —Unrestricted net assets

266,839TOTAL LIABILITIES AND NET ASSETS$ 275,297

See notes to financial statements.

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STATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31, 2011

REVENUES:
Contributions:
Corporate
Individuals
Foundations and trusts$ 299,029
172,61275,961
547,602

Product sales
In-kind contributions
Other

49,42037,797
11,049Total revenue

645,868

EXPENSES:
Fundraising costs
Program costs
General and administrative expenses

60,889370,761
86,790Total expenses

518,440

INCREASE IN NET ASSETS

127,428

UNRESTRICTED NET ASSETS — Beginning of year

139,411

UNRESTRICTED NET ASSETS — End of year

$ 266,839

See notes to financial statements.

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STATEMENT OF CASH FLOWSFOR THE YEAR ENDED DECEMBER 31, 2011

CASH FLOWS FROM OPERATING ACTIVITIES:
Changes in net assets
Reconciliation of net assets to net cash provided by operating activities:
Depreciation and amortization
Changes in assets and liabilities:
Increase in prepaid expenses
Increase in receivables
Decrease in accrued expenses
Decrease in grant payables$ 127,428
5,273(7,467)(4,284)
3,458(11,454)

Net cash provided by operating activities

112,954

CASH FLOWS USED IN INVESTING ACTIVITIES:
Additions to capital assets(20,188)

NET CHANGE IN CASH

92,766CASH — Beginning of year

139,675

CASH — End of year

$ 232,441

See notes to financial statements.

-4-KOPERNIK SOLUTIONS, INC.
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2011

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 ofdonor-imposed restrictions. Temporarily restricted net assets are those whose donor-imposed restrictions
as to a specific purpose or time have not been met. Permanently restricted net assets are those withdonor-imposed 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 no temporarily or permanently restricted net assets. Therefore, all net assets are unrestricted.
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 areinsured 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.

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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, 2011, consist of the following:
Office furniture and equipment
Computers
Leasehold improvements
Automotive$ 4,463
22,2508,775
1,423
36,911Less accumulated depreciation

8,341$ 28,570

Depreciation and amortization expense for the year ended December 31, 2011, was $4,244 and $1,029,
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, 2011, consist of the following:
Depreciation expense
Amortization expense
Administrative labor costsMaintenance costs
Telephone expense
Rent
Professional fees
Bank charges and fees
PostageSupplies
Training and development
Credit card fees
Interest expense
Miscellaneous$ 4,244
1,029
28,050
7,260
4,887
6,613
1,288
8,505
3,307
3,745
2,323
4,087
6,391
5,062
$ 86,791

6.

SUBSEQUENT EVENTS
Subsequent events have been evaluated through January 24, 2012, the date on which the financial
statements were available to be issued.
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