CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
FINANCIAL STATEMENTSYEARS ENDED DECEMBER 31, 2021 AND 2020

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

Table of Contents

Page
Independent Auditor's Report

1-2

Financial Statements
Statements of Financial Position

3

Statements of Activities

4-5

Statements of Functional Expenses

6-7Statements of Cash Flows8

Notes to Financial Statements

9 - 18INDEPENDENT AUDITOR'S REPORTTo the Board of Trustees
Climate Central, Inc.
OpinionWe have audited the accompanying financial statements of Climate Central, Inc. (a nonprofit
organization), which comprise the statements of financial position as of December 31, 2021 and 2020,
and the related statements of activities, functional expenses, and cash flows for the years then ended,and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of Climate Central, Inc. as of December 31, 2021 and 2020, and the results of its
operations and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United Statesof America. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of Climate Central, Inc. and to meet our other ethical responsibilities in accordance withthe relevant ethical requirements relating to our audits. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements inaccordance with accounting principles generally accepted in the United States of America, and for thedesign, 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.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about Climate Central, Inc.'s ability
to continue as a going concern within one year after the date that the financial statements are available
to be issued.

Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in theaggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with generally accepted auditing standards, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.



Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Suchprocedures include examining, on a test basis, evidence regarding the amounts and disclosuresin the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of Climate Central, Inc.'s internal control. Accordingly, no such
opinion is expressed.



Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of thefinancial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,that raise substantial doubt about Climate Central, Inc.'s ability to continue as a going concern
for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.

Bethesda, Maryland
June 22, 2022

2

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
STATEMENTS OF FINANCIAL POSITIONDECEMBER 31, 2021 AND 2020
2021

2020

$

4,771,009 $64,659200,000
52,64340,062
68,717
248,008
198,451

5,367,780
64,016
69,77559,21674,569239,317
105,202$5,643,549 $5,979,875

103,066 $395,749
47,628214,247
285,276
52,516546,443552,0392,721,609
2,375,497

2,283,818
3,144,018

5,097,106

5,427,836

5,643,549 $5,979,875

ASSETS
Assets:Cash and cash equivalents
Restricted cash
Unconditional promises to give
Grants and contracts receivables
Unbilled contract receivables
Prepaid expenses
Property and equipment, net
Intangible assets, net
TOTAL ASSETSLIABILITIES AND NET ASSETS
Liabilities:
Accounts payable
Accrued expenses
Deferred rent$

Total liabilities
Commitments and contingencies (Notes 9, 11 and 12)
Net assets:
Without donor restrictions
With donor restrictions
Total net assets
TOTAL LIABILITIES AND NET ASSETS$

See accompanying notes to financial statements.
3

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
STATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31, 2021

Support and revenues:
Contributions:Foundation support
Individual support
Foundation grants
Government grants
Program fees
Other revenues
Interest income

Without
donor
restrictions

With donor
restrictions$$$
1,929,072
376,303-

1,715,500
4,357,781
959,500
100,285
125,887
174,570644

5,128,792
3,073,896

2,305,375(3,073,896)

7,434,167-

8,202,688(768,521)

7,434,167

Total program expenses

6,263,230-

6,263,230

Supporting services:Management and generalFundraising and development

800,951
700,716-

800,951
700,716

Total supporting services

1,501,667-

1,501,667

7,764,897-

7,764,897

Change in net assets

437,791(768,521)(330,730)

Net assets - beginning2,283,818

3,144,018

5,427,836

2,721,609 $

2,375,497 $

5,097,106

Net assets released from restrictions
Total support and revenues

Total expenses

NET ASSETS - ENDING$

1,715,500
2,428,709
583,197
100,285
125,887
174,570644

Total

See accompanying notes to financial statements.
4

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
STATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31, 2020

Support and revenues:
Contributions:Foundation support
Individual support
Foundation grants
Government grants
Program fees
Other revenues
Interest income

Without
donor
restrictions

With donor
restrictions$$$
1,153,408
1,416,792-

368,000
3,175,521
1,724,500
505,449
268,883
167,397677

3,640,227
3,451,963

2,570,200(3,451,963)

6,210,427-

7,092,190(881,763)

6,210,427

Total program expenses

5,185,388-

5,185,388

Supporting services:Management and generalFundraising and development

626,443
708,510-626,443
708,510

Total supporting services

1,334,953-

1,334,953

6,520,341-

6,520,341

Change in net assets

571,849(881,763)(309,914)

Net assets - beginning

1,711,969

4,025,781

5,737,750

2,283,818 $

3,144,018 $5,427,836

Net assets released from restrictions
Total support and revenues

Total expenses

NET ASSETS - ENDING$

368,000
2,022,113
307,708
505,449
268,883
167,397677

Total

See accompanying notes to financial statements.
5

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2021

Salaries and wages
Employee benefits
Payroll taxes
Professional fees
Occupancy
Information technology
Depreciation and amortization
Insurance
Office expenses
Travel
Accounting fees
Legal fees
Other
Training and development$

Total expenses by function
Allocation of program-related management
and general expenses
Total expenses$

Programs
3,296,024
761,694
262,885
1,068,168
240,565
214,179
85,02155,887
31,57438,565
281
2,059
8,616

Management
Fundraising andand General
Development$
604,635 $
364,451 $
135,825
81,87048,22529,06889,319134,626
40,56027,917
9,983
8,827
14,334
9,867
9,422
6,486
4,549
12,6437,220
1,547
28,546
11,107
12,065
3,884
1,372
1,031

Total
4,265,110
979,389
340,178
1,292,113
309,042
232,989
109,222
71,795
48,76647,33228,546
11,38818,00811,0196,065,518

1,017,162

682,217

7,764,897

197,712(216,211)

18,499-6,263,230 $

800,951 $

700,716 $7,764,897

See accompanying notes to financial statements.
6

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2020

Salaries and wages
Employee benefits
Payroll taxes
Professional fees
Occupancy
Information technology
Depreciation and amortization
Insurance
Accounting fees
Office expenses
Legal fees
TravelOther
Training and development
Conference, conventions and meetings$

Total expenses by function
Allocation of program-related management
and general expenses
Total expenses$

Management
Fundraising andPrograms
and General
Development
2,497,250 $
610,383 $355,766 $
669,900
152,667
89,161
179,71443,98825,603
952,530
10,358116,293
218,454
50,044
31,165
158,488
11,72810,063
99,637
22,824
14,21438,948
8,924
5,575
41,957
15,936
4,024
17,957
15,794
8,303
10,691
6,265
3,817
728
8,304
3,932
4,506
654
492
3,304
-

Total
3,463,399
911,728
249,305
1,079,181
299,663
180,279
136,675
53,447
41,95737,91724,097
20,773
12,964
5,652
3,304

4,862,576

983,727

674,038

6,520,341

322,812(357,284)

34,472-

5,185,388 $

626,443 $

708,510 $

6,520,341

See accompanying notes to financial statements.
7

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020
2021

2020

(330,730) $(309,914)

109,222(4,888)
4,843

136,675(4,194)-(200,000)
17,132
19,154
5,851(111,180)
110,473

1,075,000
5,838
155,622(6,108)(184,630)(2,322)(380,123)

865,967

Cash flows from investing activities:
Purchases of property and equipment
Purchases of intangible assets(97,462)(118,543)(169,327)(16,302)

Net cash used in investing activities(216,005)(185,629)

Net increase (decrease) in cash and cash equivalents(596,128)

680,338

Cash and cash equivalents - beginning

5,431,796

4,751,458

4,835,668 $5,431,796

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:
Depreciation and amortization
Deferred rent
Loss on disposal of property and equipment
Changes in operating assets and liabilities:
Unconditional promises to give
Grants and contracts receivable
Unbilled contract receivables
Prepaid expenses
Accounts payable
Accrued expenses$

Net cash provided by (used in) operating activities

CASH AND CASH EQUIVALENTS - ENDING$

Reconciliation of cash and restricted cash:
The following table provides a reconciliation of cash and restricted cash reported within the statementsof financial position that sums to the total of the same such amounts shown in the statements of cash
flows:
2021
2020
Cash
Restricted cash
Total cash and restricted cash shown in the statements of cash
flows

$

4,771,009 $64,6595,367,780
64,016$

4,835,668 $5,431,796

See accompanying notes to financial statements.
8

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
NOTE 1.

NATURE OF ORGANIZATION
Climate Central, Inc. (the "Organization") is an independent not for profit organizationof leading scientists, tech experts and communication professionals that are dedicated toresearching and reporting on climate change and its impacts and solutions to the publicand decision makers locally, nationally and internationally. The Organization surveys
and conducts scientific research on climate change and informs the public of key
findings. The Organization is not an advocacy organization and does not lobby orsupport any specific legislation, policy or bill regarding climate change.
The major programs of the Organization are Climate Matters, Sea Level Rise, Realtime
Climate, Partnerships Journalism and Enterprise.
Climate Matters
Climate Matters is a climate reporting resource program grounded in the latest sciencethat helps meteorologists and journalists report on climate impacts and solutions inways that are local, immediate, and personal.
The Organization's team of scientists, data analysts and visual artists identify andinterpret data and produce easy to understand text and visual materials, including
graphics, interactives and videos, to help journalists build stories that will engage andenlighten their audience.
The Organization's reporting tools are available, free of charge, to anyone interested intelling engaging local, science-based stories about how global climate change is
impacting their community, why it matters, and what can be done about it.
Sea Level Rise
The Organization's program on Sea Level Rise strives to provide accurate, clear andgranular information about sea level rise and coastal flood hazards both locally andglobally, today and tomorrow. Anchored in rigorous primary research, theOrganization's work distinguishes itself by its user-friendly maps and tools, extensive
datasets, and high quality visual presentations. The program dedicates its efforts tohelping citizens, communities, businesses, organizations, and governments at every levelto understand the consequences of different carbon pathways and to navigate theshifting waters of our warming world.
Realtime Climate
Realtime Climate is an initiative to dispatch timely alerts and related content tometeorologists, other journalists, and other subscribers when current local conditions
present a notable opportunity to communicate about climate change, its impacts, or its
solutions. At Realtime Climate’s core is a continually updated software system thatmonitors a growing range of data streams from local weather forecasts to coastal waterlevels to local renewable energy generation. When key thresholds are met, the systemassembles related content, largely leveraging research and materials from the Climate
Matters and Sea Level Rise programs, and sends alerts to subscribers in the areas
experiencing threshold conditions. Subscribers include participants in the Climate
Matters program and many stakeholders of the Sea Level Rise program, as well asanyone who opts in using an online form on Climate Central’s website.

9

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
NOTE 1.

NATURE OF ORGANIZATION (CONTINUED)
Partnerships Journalism
The Organization brings a partnerships journalism initiative to the service of Climate
Matters and Sea Level Rise to add depth to the understanding of the human impacts ofclimate change and, when applicable, its promising solutions.
Partnering with local and national media organizations, the Organization produces andhelps develop stories for a wide variety of print, digital, radio, and TV outlets.
Enterprise
In addition to the above programs, there is another program titled "Enterprise" which
focuses on marketing and licensing organizational tools and data to domestic andforeign corporations such as insurance and real estate companies, rating agencies andnational, state and local governmental entities.

NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of presentation
The financial statements of the Organization have been prepared in accordance withaccounting principles generally accepted in the United States of America ("U.S.
GAAP"), which require the Organization to report information regarding its financial
position and activities according to the following net asset classifications:
Net assets without donor restrictions - Net assets that are not subject to donor-imposed
restrictions and may be expended for any purpose in performing the primaryobjectives of the Organization. These net assets may be used at the discretion of theOrganization's management and the Board of Trustees (the "Board").
Net assets with donor restrictions - Net assets subject to stipulations imposed by donors
or grantors. Some restrictions are temporary in nature; those restrictions will be met
by actions of the Organization or by the passage of time. Other such restrictions areperpetual in nature, whereby the donor has stipulated that the funds be maintained inperpetuity.
Donor-restricted contributions are reported as increases in net assets with donor
restrictions. When a restriction expires, net assets are reclassified from net assets withdonor restrictions to net assets without donor restrictions in the statements of activities.
Use of estimates
The preparation of financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions that affect the reported amounts ofassets and liabilities and disclosure of contingent assets and liabilities at the dates of thefinancial statements, and the reported amounts of revenues and expenses during thereporting periods. Actual results could differ from those estimates.
Income taxes
The Organization is a not-for-profit corporation as described in Section 501(c)(3) of theInternal Revenue Code (the "Code") and is exempt from federal income taxes under
Sections 509(a)(1) and 170(b)(1)(A)(vi) of the Code. The Organization is not a private
foundation. Contributions to the Organization are deductible to the extent permitted bylaw. The Organization is also exempt from state income taxes.
10CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Uncertain tax positions
The Organization follows accounting requirements associated with uncertainty inincome taxes using the provisions of the Financial Accounting Standards Board("FASB") Accounting Standards Codification ("ASC") 740, Income Taxes. Using that
guidance, tax positions initially need to be recognized in the financial statements when it
is more likely than not that the positions will not be sustained upon examination by thetaxing authorities. It also provides guidance for derecognition, classification, interest andpenalties, accounting in interim periods, disclosure, and transition.
As of December 31, 2021 and 2020, the Organization had no uncertain tax positions
that qualified for either recognition or disclosure in the financial statements.
Cash and cash equivalents
The Organization considers all highly liquid investments with maturities of threemonths or less from the date of purchase to be cash equivalents.
Grants, contracts and unbilled contract receivables
Grants and contracts receivable include amounts due from grants, program fees, andother miscellaneous sources. The amounts are stated at unpaid balances, less anallowance for doubtful accounts. The allowance is based on management's estimation ofcollectibility. It is the Organization's policy to charge off uncollected receivables whenmanagement determines that it has exhausted all collection efforts. There was noallowance for doubtful accounts as of December 31, 2021 and 2020. All accounts
receivable are expected to be collected in one year or less.
Unbilled contract receivables include unreimbursed expenses not yet invoiced. The
unbilled contract receivables are expected to be billed and collected within one year or
less.
Promises to give
Contributions and pledges, including unconditional promises to give, are recognized asrevenues when the Organization is formally informed of the contributions by therespective donors. Unconditional promises to give are recognized as revenues or gains
in the period received as assets, decreases in liabilities, or expenses, depending on theform of the benefits received. Conditional promises to give are not recognized until they
become unconditional, that is, at the time when the conditions or barriers on which they
depend are substantially met. Unconditional promises to give to be received after one
year are discounted at an appropriate discount rate that is commensurate with the risks
involved and are classified as with donor restrictions due to passage of time or purpose.
Contributions, grants, and other income
Contributions and foundation and government grants are recognized as revenue when
they are unconditionally promised from the Organization's individual donors,
foundations, and governments, respectively. Contributions and grants received that are
restricted by the donor are reported as an increase in net assets without donor
restrictions if the restrictions are fulfilled in the reporting period in which thecontribution is recognized. All other donor-restricted contributions are reported as anincrease in net assets with donor restrictions, depending on the nature of restriction.
When a restriction expires (that is, when a stipulated time restriction ends or purpose11

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Contributions, grants and other income (continued)
restriction is accomplished), net assets with donor restrictions are reclassified to net
assets without donor restrictions and reported in the statements of activities as net
assets released from restrictions.
A portion of the Organization’s revenue is derived from cost-reimbursable government
grants, which are conditioned upon certain measurable performance barriers and/or the
incurrence of allowable qualifying expenses. Revenue is recognized in the amountinvoiced, typically monthly, since the amount corresponds directly to the value of theperformance to date. Amounts received prior to incurring qualifying expenditures orproviding the related services are reported as refundable advances in the statements offinancial position.
Contributions of donated non-cash assets are recorded at their fair values in the period
received. Contributions of donated services that create or enhance non-financial assets
or that require specialized skills, are provided by individuals possessing those skills, andwould typically need to be purchased if not provided by donation, are recorded at theirfair values in the period received. For the years ended December 31, 2021 and 2020,
there were no contributed services meeting the requirements for recognition in thefinancial statements; however, many individuals volunteer their time and perform avariety of tasks that assist the Organization with its programs.
Donations of property and equipment are recorded as contributions at their estimatedfair values at the dates of donation. Such donations are reported as increases in net
assets without donor restrictions, unless the donor has restricted the donated asset to a
specific purpose. Assets donated with explicit restrictions regarding their uses andcontributions of cash that must be used to acquire property and equipment are reported
as net assets with donor restrictions. Absent donor stipulations regarding how longthose donated or acquired assets must be maintained, the Organization reports
expirations of donor restrictions when the donated or acquired assets are placed inservice as instructed by the donor. The Organization reclassifies net assets with donor
restrictions at that time and reports them as "Net assets released from restrictions" on
the statements of activities.
Program fees
Revenue is measured in accordance with ASC Topic 606, Revenue from Contracts with
Customers ("Topic 606") and is based on the consideration specified in a contract with acustomer, and excludes any amounts collected on behalf of third parties. Under Topic
606, the Organization recognizes revenue when it satisfies a performance obligation bytransferring control over a product or service to a customer. The majority of theOrganization's services represent a bundle of services that are not capable of being
distinct and are treated as a single performance obligation. The Organization determines
the transaction price based on contractually agreed upon rates, adjusted for any variableconsideration, if any.
Program fees from licensing agreements and content sales are recognized at the time thecontent is delivered.

12

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property and equipment
Property and equipment purchased are stated at cost, less accumulated depreciation.
The Organization has a capitalization threshold of $1,000. Amounts incurred forproperty and equipment less than this amount are recorded as an expense. Property andequipment contributed to the Organization are recorded at fair value on the datereceived. Depreciation is computed using the straight-line method based on estimateduseful lives. Repairs and maintenance which do not extend the useful lives of the related
assets are expensed as incurred. Property and equipment purchased under grant
contracts, which become the property of the recipient, are expensed to the applicable
program.
Depreciation is provided using the straight-line and various accelerated methods overthe estimated useful lives of the assets, which are as follows:
Computer equipment
Leasehold improvements

5 years
Estimated life or term of thelease, whichever is shorter.
5 years

Furniture and fixtures
Intangible assets

Intangible assets are recorded at cost, less accumulated amortization. Intangible assets
with finite lives are amortized over their estimated useful lives and are reviewed for
impairment if indicators of impairment arise. Website design costs are amortized on astraight-line basis over a five-year period. Intangible assets consisted of the following asof December 31, 2021 and 2020:
Website design costs
Accumulated amortization

2021

2020

$

460,595 $(262,144)

342,052(236,850)$

198,451 $

105,202

Functional allocation of expenses
The costs of providing the Organization's program services, management and general,and fundraising activities have been summarized on a functional basis in theaccompanying statements of activities. The statements of functional expenses represents
the natural classification detail of expenses by function. The Organization incurs
expenses that directly relate, and can be assigned, to a specific program or supporting
activity. The Organization also conducts a number of activities which benefit both its
program objectives as well as supporting services.

13

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Functional allocation of expenses (continued)
The expenses that are allocated include the following:
Expense

Method of Allocation

Salaries and wages and related costs
Professional fees
Information technology
Occupancy
Depreciation and other

Time and effort
If not directly charged, allocated based on
Full Time Equivalents per department
Time and effort, and Full Time
Equivalents per department
Full Time Equivalents per department
Full Time Equivalents per department

Recently issued but not yet adopted accounting pronouncements
In February 2016, FASB issued ASU No. 2016-02, Leases. This update requires all leases
with terms greater than 12 months to be recognized on the statement of financial
position through a right-of-use asset and a lease liability and the disclosure of key
information pertaining to lease arrangements. This new guidance was amended in June
2020 by ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases(Topic 842): Effective Dates for Certain Entities, deferring the effective date of ASU No.
2016-02 to years beginning after December 15, 2021, with early adoption permitted.
The Organization is currently evaluating the effect that ASU 2016-02 will have on its
financial statements and related disclosures.
In September 2020, FASB issued ASU No. 2020-07, Not-for-Profit Entities (Topic 958):
Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets ("ASU
2020-07"), which is intended to increase the transparency of contributed nonfinancial
assets for not-for-profit entities through enhancements to presentation and disclosure.
This ASU is effective for annual periods beginning after June 15, 2021, with early
adoption permitted. The Organization is evaluating the effect that ASU 2020-07 will
have on its financial statements and related disclosures.
Subsequent events
In accordance with FASB ASC 855, Subsequent Events, the Organization has evaluatedsubsequent events through June 22, 2022, the date on which these financial statements
were available to be issued. There were no material subsequent events that required
recognition or additional disclosure in these financial statements.

14

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
NOTE 3.

LIQUIDITY AND AVAILABILITY
The following represents the Organization's financial assets available for general
expenditures within one year as of December 31, 2021 and 2020:
2021
Financial assets at year end:
Cash and cash equivalents
Unconditional promises to give
Grants and contracts receivable
Unbilled receivables

2020$ 4,771,009 $ 5,367,780
200,000
52,643
69,77540,062
59,216

Total financial assets at year-end

5,063,714

5,496,771

Less amounts not available to be used within
one year:
Net assets with donor restrictions
Less: net assets with purpose restrictions to be
met in less than one year

2,375,497

3,144,018(2,375,497)(3,144,018)

Financial assets available to meet general
expenditures over the next 12 months$ 5,063,714 $ 5,496,771

The Organization has $5,063,714 and $5,496,771 of financial assets available within one
year of the statements of financial position date to meet cash needs for general andprogram expenditures including of cash in the amount of $4,771,009 and $5,367,780 for
the years ended December 31, 2021 and 2020, respectively. The unconditional promises
to give are subject to implied time restrictions but are expected to be collected within
one year.
The Organization has a goal to maintain financial assets, which consist of cash andshort-term investments, on hand to meet 180 days of normal operating expenses, which
management estimates to be approximately $4,600,000 in 2022. The Organization
structures its financial assets to be available to meet general expenditure obligations as
they come due. Cash balances in excess of near-term obligations are held with theOrganization's bank to generate balance credits to meet the costs of banking services ona monthly basis. Any balances considered to be in excess of such needs are invested in
short-term investments.
The Organization has a governance and management process in place related toliquidity management. Balances of financial assets are monitored on a daily basis and arereported to the Organization's chief executive officer on a weekly basis. The balances offinancial assets are reported to the Board and the Finance Committee of the Board
during regularly scheduled Board and committee meetings (three times per year), and to
the Executive Committee of the Board at regularly scheduled meetings or at any timethat the balances of financial assets drop below the balance goal defined above.
In addition to the monitoring of financial assets on hand, the Board, the FinanceCommittee of the Board and the Executive Committee of the Board are advised of thefundraising activities of the Organization on the schedule noted above. The prospect
pipeline is quantified and supported with qualitative information to allow for anassessment of the fundraising activities of the Organization.

15

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
NOTE 4.

CONCENTRATIONS
Credit risk
At December 31, 2021 and 2020, the Organization maintained cash with a financial
institution in amounts in excess of the coverage provided by federal insurance limits.
The Organization maintains these accounts with a high credit quality financial
institution, and, therefore, management does not believe the Organization faces asignificant risk of loss on these accounts.
Promises to give
As of December 31, 2021, the Organization had unconditional promises to give fromone donor. As of December 31, 2020, the Organization did not have any unconditional
promises to give.
Support and revenues
During the year ended December 31, 2021, approximately 54% of the Organization's
total support and revenue was derived from three donors. During the year ended
December 31, 2020, approximately 33% of the Organization's total support and revenue
was derived from one donor.

NOTE 5.

RESTRICTED CASH
As part of its lease agreement for an office facility, the Organization delivered anirrevocable standby letter of credit secured by a certificate of deposit. The certificate ofdeposit bears interest at the rate of 1.00% per annum and matures on April 28, 2023. In
December 2018, the lease was modified to call for a letter of credit of $41,802. The
letter of credit automatically extends each year.
The certificate of deposit had a balance of $64,659 and $64,016 as of December 31,
2021 and 2020, respectively, which includes interest income earned that is included
within "Interest income" in the accompanying statements of activities.

NOTE 6.

PROMISES TO GIVE
Unconditional promises to give amounted to $200,000 as of December 31, 2021. The
entire balance is expected to be collected in less than one year. There were no
unconditional promises to give at December 31, 2020.
At December 31, 2021 and 2020, there were $1,500,000 and $350,000, respectively, inoutstanding conditional promises to give.

NOTE 7.

PROPERTY AND EQUIPMENTThe Organization's property and equipment consisted of the following at December 31,
2021 and 2020:
2021
Computer equipment
Leasehold improvements
Furniture and fixtures$

720,227 $627,607383,687
383,687
136,110
136,1101,240,024
1,147,404(992,016)(908,087)$

248,008 $Accumulated depreciation
Property and equipment, net
16

2020

239,317

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
NOTE 7.

PROPERTY AND EQUIPMENT (CONTINUED)
Depreciation expense was $109,222 and $136,675 for the years ended December 31,
2021 and 2020, respectively.

NOTE 8.

NET ASSETS WITH DONOR RESTRICTIONS
Net assets with donor restrictions were available for the years ended December 31, 2021
and 2020, as follows:
2021
Programs:
Sea Level Rise
Climate Matters
Realtime Climate

$

Total

2020

570,801 $287,048
1,289,797
953,562
514,899
1,903,408$ 2,375,497 $ 3,144,018

During the years ended December 31, 2021 and 2020, net assets were released fromdonor restrictions by incurring expenses satisfying purpose restrictions or by the passageof time.
2021
Programs:
Sea Level Rise
Climate Matters
Realtime Climate$

Total programs
General operations/time restricted

2020

287,048 $ 1,059,354
883,440
604,170
1,903,408
775,120
3,073,896

2,438,644-

1,013,319$ 3,073,896 $ 3,451,963
NOTE 9.

RETIREMENT PLAN
The Organization has a defined contribution 401(k) plan. Substantially all employees are
eligible to participate. Contributions to the plan are based on participant compensation
but not more than statutory limits. The Organization made contributions of $461,101
and $382,896 for the years ended December 31, 2021 and 2020, respectively.

NOTE 10.

RELATED-PARTY TRANSACTIONSThe Organization received contribution support from organizations connected with afounding board member of the Organization. Contributions to the Organization fromthese related parties totaled $2,025,000 and $2,025,000 for the years ended December
31, 2021 and 2020, respectively.
During 2021 and 2020, the Organization received support from other organizations
totaling $1,500,000 and $500,000, respectively, that are associated with certain board
members.
During 2021 and 2020, the Organization received support from certain board members
totaling $115,075 and $14,500, respectively.

17

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
NOTE 11.

LEASESThe Organization has a non-cancelable operating lease for an office facility in New
Jersey which expires in September 2023. The lease was last modified in 2019 to increase
the office space rented. Rental expense for the operating lease was $281,001 and$273,403 for the years ended December 31, 2021 and 2020, respectively.
At December 31, 2021, future minimum rental payments due under the prior andmodified lease over the revised term are as follows:Year ending December 31:
2022
2023

$

Amount289,464
221,946$

511,410The Organization's operating lease agreement contains provisions for future rent
increases. In accordance with U.S. GAAP, the Organization records monthly rent
expense equal to the total of the payments due over the lease term, divided by the
number of months of the lease term (straight-line basis). The difference between rent
expense recorded and the amount paid is credited or charged to "Deferred rent," whichis reflected as a separate line item in the accompanying statements of financial position.
NOTE 12.

RISKS AND UNCERTAINTIESOn March 11, 2020, the World Health Organization recognized COVID-19 as a global
pandemic, prompting many national, regional, and local governments to implement
preventative or protective measures, such as travel and business restrictions, temporary
store closures, and wide-sweeping quarantines and stay-at-home orders. As a result,
COVID-19 and the related restrictive measures have had a significant adverse impact
upon many sectors of the economy, including industries in which the Organization
operates.
The extent of the impact of COVID-19 on the Organization's business and financial
results will depend on future developments, including the duration and spread of theoutbreak within the markets in which it operates and the related impact on consumer
confidence and spending, all of which are highly uncertain. No adjustments orprovisions were made in these financial statements related to uncertainties which havearisen or which may arise in the future due to COVID-19.

18