Kopernik Solutions

Financial Statements & Audit Report
For the Year Ended December 31, 2017

TABLE OF CONTENTS

Page

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

John Vazzana CPA
155 Bay Ridge Avenue - Brooklyn - NY - 11220(718) 491-1241

www.JVCPAPLLC.com
PLLC

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, 2017, 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, 2017, 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
October 31, 2018

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Kopernik Solutions
Statement of Financial Position
December 31, 2017

ASSETSCash and cash equivalents$

753,357

Grants receivable

366,086

Prepaid expenses

22,551

Investments

1,058,614

Fixed assets (net)2,329

Other assets

500

Total Assets$ 2,203,437

LIABILITIES & NET ASSETS

Accrued expenses$

30,407

Grants payable

39,467

Deferred revenue

2,539

Total Liabilities

72,413

Net Assets
Unrestricted

1,764,938

Temporarily restricted

366,086

Permanently restricted-

Total Net Assets
Total Liabilities and Net Assets

2,131,024$ 2,203,437

See independent auditor's report.
The accompanying notes are an integral part of these financial statements.

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Kopernik Solutions
Statement of Activities
For year ended December 31, 2017

Unrestricted

Temporarily
Restricted

Permanently
Restricted

Total

Revenues and other support
General contributions$

357,206$ 366,086$-$ 723,292

ENERGIA program grant352,511--352,511

Program service revenue

177,638--

177,638

Investment income

58,614--58,614

Interest income

436

-

-

436

In-kind support

11,250--

11,250Total revenues and other support

957,655

366,086-

1,323,741

Satisfaction of time and purpose restrictions

365,031(365,031)-

Total revenues, other support and net assets
released from restrictions

1,322,686

1,055

-

1,323,741

Program services

807,705--

807,705

Management and general

87,297--87,297

Fundraising40,240--40,240Total expenses

935,242--935,242

Changes in net assets

387,444

1,055-

388,499

1,377,494

365,031-

1,742,525$ 1,764,938$ 366,086-$2,131,024

Net assets released from restrictions-

Expenses

Net assets at beginning of year
Net assets at end of year$

See independent auditor's report.
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, 2017

CASH FLOW FROM OPERATING ACTIVITIES:

Changes in Net Assets$

388,499

Adjustments to reconcile change in net assets to net cash
provided (used) in operating activities:
Unrealized (gain) loss on investments
Depreciation(34,042)
1,165

Changes in operating assets and liabilities
Decrease/(increase) in assets:
Grants receivable(1,316)

Accounts receivable

7,313

Prepaid expenses(17,862)

Other assets

12,184(Decrease)/increase in liabilities:
Accrued expenses

10,665Grants payable

39,467

Deferred revenue(32,661)

Net cash provided by/(used in) operating activities

373,412

CASH FLOW FROM INVESTING ACTIVITIES:

Purchase of fixed assets
Purchase of investments
Net cash provided by/(used in) investing activities(3,494)(1,024,572)(1,028,066)

CASH FLOW FROM FINANCING ACTIVITIES:

None

-

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

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS(654,654)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

1,408,011

CASH AND CASH EQUIVALENTS AT END OF YEAR$

SUPPLEMENTAL CASH FLOWS INFORMATION:

See independent auditor's report.
The accompanying notes are an integral part of these financial statements.

753,357

None

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Kopernik Solutions
Statement of Functional Expenses
For year ended December 31, 2017

ProgramServices

Grants$Compensation and benefits

599,529

Management
and General$-Fundraising

$

-

Total

$

599,529

121,158

37,014

13,186

171,358

Professional fees-

22,160-22,160

Office expense

7,172

2,352

-

9,524

Information technology

843

1,996

422

3,261

Conference and travel

64,497-

21,36185,858Depreciation

-

1,165

-

1,165

Insurance

-

1,476

-

1,476

2,256

-

-

2,256

Foreign exchange loss-

15,561-

15,561

License, dues and fees

1,000

5,573

5,271

11,844

Expenses before in-kind

796,455

87,29740,240923,992

Services (in-kind)

11,250--

11,250Professional development

Total Expenses$

807,705$

87,297$40,240See independent auditor's report.
The accompanying notes are an integral part of these financial statements.

$

935,242Page

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Kopernik Solutions
Notes to Financial Statements
December 31, 2017

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 was formed for the charitable purpose of providing developmental assistanceto poor and disadvantaged 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 and generalcontributions. The Organization is exempt from federal income taxes as an 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 Code requirements.

Note 2 - Significant Accounting Policies
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-forprofit organizations on an accrual basis. The significant accounting and reporting policies usedby the organization are described below.
Unrestricted Net Assets: Unrestricted net assets are resources available to support operations.
The only limits on the use of unrestricted net assets are the broad limits resulting, from thenature of the organization, the environment in which it operates, the purposes specified in its
corporate documents and its application for tax-exempt status, and any limits resulting fromcontractual agreements with creditors and others that are entered into in the course of its
operations. Board-designated funds represent unrestricted funds which may, from time to time,
be designated by the board of directors for specific purposes.
Temporarily Restricted Net Assets: Temporarily restricted net assets are resources that are
restricted by a donor for use for a particular purpose or in a particular future period. The
organization's unspent contributions are classified in this class if the donor limited their use, as
are the unspent appreciation of its donor-restricted endowment funds.
When a donor's restriction is satisfied, either by using the resources in the manner specified
by the donor or by the passage of time, the expiration of the restriction is reported in thefinancial statements by reclassifying the net assets from temporarily restricted to unrestricted
net assets. Net assets restricted for acquisition of buildings or equipment (or less commonly,
the contribution of those assets directly) are reported as temporarily restricted until the specified
asset is placed in service by the organization, unless the donor provides more specificdirections about the period of its use.
Permanently Restricted Net Assets: Permanently restricted net assets are resources whose
use by the organization is limited by donor-imposed restrictions that neither expire by being
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Kopernik Solutions
Notes to Financial Statements
December 31, 2017used in accordance with a donor's restriction nor by the passage of time. The portion of theorganization's donor-restricted endowment funds that must be maintained in perpetuity areclassified in this net asset class, as is the organization's beneficial interest in a perpetualcharitable trust held by a bank trustee.
All revenues and net gains are reported as increases in unrestricted net assets in the statementof activities unless the use of the related resources is subject to temporary or permanent donor
restrictions. All expenses and net losses other than losses on endowment investments arereported as decreases in unrestricted net assets. Net losses on endowment investments
reduce temporarily restricted net assets to the extent that net gains of the fund from prior years
are unspent and classified there; remaining losses are classified as decreases in unrestricted
net assets. If an endowment fund has no net gains from prior years, such as when a fund is
newly established, net losses are classified as decreases in unrestricted net assets.
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 (Pledges) Receivable: Contributions receivable are unconditional promises togive 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 one year arerecorded at fair value at the date of promise. That fair value is computed using a present value
technique applied to anticipated cash flows.
Amortization of the resulting discount isrecognized as additional contribution revenue. The allowance for uncollectible contributions
receivable is determined based 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. All pledges receivable
are expected by management to be collected during the next year.
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 the dateof 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 andmaintenance 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.
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 is clearlyPage

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Kopernik Solutions
Notes to Financial Statements
December 31, 2017

intended to support activities of the current fiscal year or is received with permanent 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 arereported 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 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.
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 and statementof 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 specificprogram, but which provide for the overall support and direction of the organization. Fundraisingcosts are expensed as incurred, even though they may result in contributions received in futureyears. The organization generally does not conduct its fundraising activities in conjunction with
its other activities.
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 the estimates andassumptions based upon historical experience and various other factors and circumstances.
The organization's management believes that the estimates and assumptions are reasonable;
however, the actual results could differ from those estimates.
New Accounting Pronouncements:
Revenue: In May 2014, the Financial Accounting Standards Board (“FASB”) issued a standard

on Revenue from Contracts with Customers. This Standard implements a single framework forrecognition of all revenue earned from customers. This framework ensures that entities
appropriately reflect the consideration to which they expect to be entitled in exchange for goods
and services by allocating transaction price to identified performance obligations andrecognizing revenue as performance obligations are satisfied. Qualitative and quantitative
disclosures are required to enable users of financial statements to understand the nature,amount, timing, and uncertainty of revenue and cash flows arising from contracts withcustomers. The standard is effective for fiscal years beginning after December 15, 2017. The
Organization is currently evaluating the impact this will have its financial statements.

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Kopernik Solutions
Notes to Financial Statements
December 31, 2017

Financial Statement Presentation: In August 2016, the FASB issued ASU 2016-14,

Presentation of Financial Statements for Not for Profit Entities (“ASU 2016-14”). The newstandard looks to improve the current net asset classification requirements and the information
presented in financial statements and notes about a not-for-profit entity’s liquidity, financial
performance, and cash flows. The main provisions of this update, which amend therequirements for financial statements and notes, require not-for-profit entities to present on theface of the statement of financial position amounts for two classes of net assets at the end of
the period, rather than for the currently required three classes. Other amendments include
improved quantitative and qualitative disclosures in the footnotes. The amendments in thisupdate are effective for annual financial statements issued for fiscal years beginning after
December 15, 2017, and for interim periods within fiscal years beginning after December 15,
2018. The Organization is evaluating the impact this will have on the financial statements.

Note 3 - Fixed Assets
The details of fixed assets and useful life are as follows:
Computer equipment (3 Years)
Less: accumulated depreciation
Fixed assets (net)$ 3,494
1,165$ 2,329

Note 4 - Grants Receivable
Pledges receivable are expected by management to be collected during the next year.
Management has determined that the pledges and grants receivable are fully collectible;
therefore, no allowance for uncollectible accounts is considered necessary at December 31,
2017.

Note 5 - Restricted Net Assets
The organization had no permanently restricted net assets at December 31, 2017. The details
for the temporarily restricted net assets for the year ending December 31, 2017 are as follows:
Name
Exxonmobil Foundation

Light Up Aqaba

Awareness Raising

Restriction Details
These funds are restricted for use in a future
periodThis project helps connect solar lights to
Syrian refugees in Aqaba camp, Jordan, andease their cost of living whilst providing cleanand safe lighting.
Funds for awareness raising tour in Australia
in a future period
Total

Temporarily
restricted
contributions

Balance
beginning of year$$

350,000$

Net assets released
from restrictions

350,000$

Balanceend of year

(350,000) $350,000

15,031-(15,031)--

16,086-

16,086(365,031) $366,086

365,031$

366,086

$

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Kopernik Solutions
Notes to Financial Statements
December 31, 2017

Note 6 - In-Kind Services
In-kind contributions are reflected as contributions at their fair value at date of donation and arereported as unrestricted support unless explicit donor stipulations specify how donated assets
must be used. For the year ending December 31, 2017, the Organization benefited fromdonated technology services which were valued by the organization at $11,250. The donatedservices were utilized in the Organization’s program services.
Note 7 - 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 8 - Fair Value Measurements
The organization reports its fair value measures using a three-level hierarchy that prioritizes
the inputs used to measure fair value. This hierarchy, established by GAAP, requires that
entities maximize the use of observable inputs and minimize the use of unobservable inputs
when measuring fair value. The three levels of inputs used to measure fair value are as follows:

Level 1: Quoted prices for identical assets or liabilities in active markets to which theorganization has access at the measurement date.



Level 2: Inputs other than quoted prices included in level I that are observable for theasset or liability, either directly or indirectly. Level 2 inputs include

quoted prices for similar assets or liabilities in active markets;

quoted prices for identical or similar assets in markets that are not active;observable inputs other than quoted prices for the asset or liability (for example,
interest rates and yield curves); and

inputs derived principally from, or corroborated by, observable market data bycorrelation or by other means.

Level 3: Unobservable inputs for the asset or liability. Unobservable inputs should be
used to measure the fair value to the extent that observable inputs are not available.

When available, the organization measures fair value using level 1 inputs because theygenerally provide the most reliable evidence of fair value. However, level I inputs are notavailable for many of the assets and liabilities that a not-for-profit organization is required tomeasure 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 therecurring measurement of investments.
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Kopernik Solutions
Notes to Financial Statements
December 31, 2017

Note 9 - ENERGIA Grant
In September 2014, Kopernik entered into a cooperation agreement with The ENERGIAInternational Network on Gender and Sustainable Energy (“ENERGIA”) (part of ETC
Foundation). The total award amount was $603,445 (EUR 546,301) for the Wonder Women
East Indonesia project. The contract term was 36 months commencing on September 1, 2014
and ending on August 31, 2017.
In January 2015, Kopernik entered into a second cooperation agreement with ENERGIA for
the Advocacy program. The total award amount was $ 154,544 (EUR 144,139). The contract
term was 32 months from January 1, 2015 to August 31, 2017.
Based on the specifications, management has determined these agreements to cost
reimbursement awards. For grants determined to be cost reimbursement awards, grant
revenue is recognized as costs are incurred and funds received in excess of costs incurred arerecorded as deferred revenue.
Kopernik has an unspent balance of $ 6,552 (EUR 5,460) for the Advocacy project at the endof contract period of August 31, 2017. After August 31, 2017 Kopernik was granted additional
funding (bridging funds). The following schedules contain the details for the original award andthe bridging funds through December 31, 2017:

Balance 01/01/2014
Funds received
Project expenditures
Balance 12/31/2014

Wonder Women
East Indonesia
Project
125,177(45,558)
79,619Balance 01/01/2015
Funds received
Project expenditures
Balance 12/31/2015

Advocacy Project

Wonder Women
East Indonesia
Bridging Fund

Total

-

125,177(45,558)
79,61979,619
153,781(213,332)
20,068

119,956(65,883)
54,07379,619273,737(279,215)
74,141

Balance 01/01/2016
Funds received
Project expenditures
Exchange gain (loss)
Balance 12/31/2016

20,068134,297(145,085)
8,123
17,40354,073
19,949(60,464)
4,239
17,797

74,141
154,246(205,549)
12,36235,200

Balance 01/01/2017
Balance 09/01/2017
Funds received
Project expenditures
Exchange gain (loss)
Balance 08/31/2017
Balance 12/31/2017

17,403

17,797

190,190(216,769)
9,176-

14,639(27,638)
1,754
6,552
-

6,552
99,419(108,104)
4,672

35,2006,552
304,248(352,511)
15,602

2,539
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Kopernik Solutions
Notes to Financial Statements
December 31, 2017

Note 10 - Investments
Investments consist of the following at December 31, 2017:

US Bonds
International Bonds
US Securities
International Securities
Total investments

Fair Value
592,823
253,009130,210
82,572$1,058,614

As discussed in the above note to these financial statements, the organization is required toreport its fair value measurements in one of three levels, which are based on the ability toobserve in the marketplace the inputs to the organization's valuation techniques.


Level 1: This, the most observable level of inputs, is for investments measured at quoted prices in active
markets for identical investments as of the measurement date. An open-ended mutual fund that producesa daily NAV that has a sufficient level of observable activity (i.e., purchases and sales at NAV) will supportclassification of the fair value measurement as Level 1 in the fair value hierarchy. In this case, the NAV
represents the exit value of the security at the measurement date.



Level 2: This is for investments measured using inputs such as quoted prices for similar assets, quoted
prices for the identical asset in inactive markets, and for investments measured at net asset value thatcan be redeemed in the near term.

Level 3: This is for investments measured using inputs that are unobservable, and is used in situations
for which there is little, if any, market activity for the investment.

There were no significant transfers between the levels during the year. The following tablesummarizes the levels in the fair value hierarchy of the organization's investments at December
31, 2017:

US Bonds
International Bonds
US Securities
International Securities
Total

Total
592,823
253,009130,210
82,572$1,058,614

Level I592,823
253,009130,210
82,572$1,058,614

Level II$-

Level III$-The composition of the investment return reported in the statement of activities is as follows:

Investment income
Net realized gains (losses)
Net unrealized gains (losses)
Total investment return$

24,572
34,04258,614Page

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Kopernik Solutions
Notes to Financial Statements
December 31, 2017

Note 11 - 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.
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, or in control of, the Organization andtherefore, the accompanying financial statements do not include the accounts of Yayasan
Kopernik or Kopernik Japan. Transactions with Yayasan Kopernik and Kopernik Japan are
included as part of operations as program activities. See the note below – Related Party
Transactions.

Note 12 - Related Party Transactions
The Organization’s Indonesian affiliate, Yayasan Kopernik, is a legally separate entity and notunder common control. The Organization has made grants to Yayasan Kopernik to further theOrganization’s mission. Grants in the amount of $ $563,496 were made for the year ending
December 31, 2017.

Note 13 - 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 14 - Concentrations of Risk
The Organization maintains its cash deposits with quality financial institutions which are insured
by the Federal Deposit Insurance Corporation up to limits set by law. As of December 31, 2017,
the uninsured portion of this balance was $ 503,357. Management believes the organization
is not exposed to significant credit risk on amounts in these institutions.

Note 15 - Subsequent Events
Subsequent events have been evaluated through October 31, 2018, which is the date thefinancial statements were available to be issued.

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