CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
FINANCIAL STATEMENTSYEARS ENDED DECEMBER 31, 2022 AND 2021

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021

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 - 21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, 2022 and 2021,
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, 2022 and 2021, 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.
Adoption of New Accounting Pronouncement
As discussed in Note 2 to the financial statements, the Organization adopted Accounting Standards
Codification Topic 842, Leases, as of January 1, 2022, using the modified retrospective method. Our
opinion is not modified with respect to this matter.
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
May 30, 2023

2

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
STATEMENTS OF FINANCIAL POSITIONDECEMBER 31, 2022 AND 2021
2022

2021

ASSETSCash 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
Operating lease right-of-use asset$

10,422,741 $
64,769100,000
130,994
1,009
92,792
223,279
227,157
198,189

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

11,460,930 $

5,643,549

216,824 $
341,937
221,373-

103,066
395,749
47,628780,134

546,4432,861,055
7,819,741

2,721,609
2,375,497

10,680,796

5,097,106

11,460,930 $

5,643,549

LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable
Accrued expenses
Operating lease liabilities
Deferred rent$

Total liabilities
Commitments and contingencies (Notes 10, 12 and 13)
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, 2022

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

Without
donor
restrictions

With donor
restrictions$$

3,005,252 $
4,634,489-

7,075,412
6,664,027
78,00875,000207,850
216,460
93,0566,770,072
2,195,497

7,639,741(2,195,497)

14,409,813-

8,965,569

5,444,244

14,409,813

Program expenses

6,905,584-

6,905,584

Supporting services:Management and generalFundraising and development

787,278
1,133,261-

787,278
1,133,261

Total supporting services

1,920,539-

1,920,539

8,826,123-

8,826,123

Change in net assets

139,4465,444,244

5,583,690

Net assets - beginning2,721,609

2,375,497

5,097,106

2,861,055 $

7,819,741 $

10,680,796

Net assets released from restrictions
Total support and revenues

Total expenses

NET ASSETS - ENDING$

4,070,160
2,029,538
78,00875,000207,850
216,460
93,056Total

See accompanying notes to financial statements.
4

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

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

Without
donor
restrictions

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

1,715,500
4,357,781
100,285959,500
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

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
100,285
583,197
125,887
174,570644

Total

See accompanying notes to financial statements.
5

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2022

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

$

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

Programs
3,314,878
814,569
268,618
1,368,689
236,900
305,551
128,009
55,08922,51796,74789,873
13,234
6,168

Management
Fundraising andand General
Development$
386,663 $598,244 $99,215
142,867
24,66347,871
220,179
200,641
29,85541,027
9,613
22,238
16,132
22,169
6,942
9,541
7,591
10,562
22,1102,604
151,164
9,563
15,266834
7,727

6,720,842

990,227

1,115,054

184,742(202,949)

18,207

6,905,584 $

787,278 $

1,133,261 $See accompanying notes to financial statements.
6

Total
4,299,785
1,056,651
341,152
1,789,509
307,782
337,402
166,310
71,572
40,670
121,461
250,600
28,50014,7298,826,123
8,826,123

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$Management
Fundraising andPrograms
and General
Development
3,296,024 $
604,635 $
364,451 $
761,694
135,825
81,870262,885
48,22529,0681,068,168
89,319134,626
240,565
40,56027,917214,179
9,983
8,827
85,021
14,334
9,867
55,887
9,422
6,486
31,574
4,549
12,64338,565
7,220
1,547
28,546281
11,1072,059
12,065
3,884
8,616
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.
7

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
2022

2021

5,583,690 $(330,730)

166,310262,261-

109,222(4,888)4,843

100,000(78,351)
39,053(286,704)(24,075)
113,758(53,812)(200,000)
17,132
19,154
5,851(111,180)
110,473

5,822,130(380,123)

Cash flows from investing activities:
Purchases of property and equipment
Purchases of intangible assets(95,475)(74,813)(97,462)(118,543)

Net cash used in investing activities(170,288)(216,005)

Net increase (decrease) in cash and cash equivalents

5,651,842(596,128)

Cash, cash equivalents, and restricted cash - beginning

4,835,668

5,431,796

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH $ENDING

10,487,510 $

4,835,668$

460,449 $-$508,077 $-Cash flows from operating activities:
Change in net assets
Adjustments to reconcile change in net assets to net cash
provided by (used in) operating activities:
Depreciation and amortization
Non-cash lease expense
Deferred rent
Loss on disposal of property and equipment
Changes in operating assets and liabilities:
Unconditional promises to give
Grants and contracts receivable
Unbilled contract receivables
Operating lease liabilities
Prepaid expenses
Accounts payable
Accrued expenses$

Net cash provided by (used in) operating activities

Supplemental disclosures for non-cash investing and financing
activities:
Operating lease right-of-use assets recognized in connection with
implementation of ASC 842
Operating lease liability recognized in connection with
implementation of ASC 842

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 such amounts shown in the statements of cash flows:
Cash and cash equivalents
Restricted cash
Total

$

10,422,741 $
64,7694,771,009
64,659$10,487,510 $

4,835,668

See accompanying notes to financial statements.
8

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 1.

NATURE OF ORGANIZATION
Climate Central, Inc. (the "Organization") is an independent not-for-profit organizationof leading scientists, technology experts and communication professionals that arededicated to researching and reporting on climate change and its impacts and solutions
to the public and 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 or support any specific legislation, policy or bill regarding climate change.
The major programs of the Organization are as follows:
Attribution + Climate Fingerprints
The Organization played a lead role in transforming the public narrative to recognizethat some extreme weather events can be attributed to climate change, a claim validated
by the National Academy of Sciences in 2016. This pioneering research is just one
example of how the Organization's scientists helped change the global climate
conversation. The Organization continues to advance science that will enable thequantification of climate fingerprints in worldwide local weather daily – a true grail forclimate communications. To achieve this impact, the Attribution Science + Climate
Fingerprints program develops tools to help reveal how climate change is disrupting ourworld. Its first operational tool, the Climate Shift Index, provides daily estimates of how
climate change is impacting air temperature.
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, interactive content and videos, to help journalists build stories that will engage
and enlighten 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.
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.
Sea Level Rise
9

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 1.

NATURE OF ORGANIZATION (CONTINUED)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.
FloodVision
FloodVision, an innovative tool developed by Climate Central, uses advanced datacollection techniques, AI-based algorithms, and intuitive software to produce sciencebased augmented-reality photos of specific locations. Users can choose optional views
to contrast meaningful scenarios in their neighborhoods, such as sea levels based on
different carbon pathways or local storm surge forecasts from approaching hurricanes.
FloodVision is designed to empower the Organization’s broad media networks, as well
as local governments, agencies, NGOs and other coastal stakeholders, such as
emergency managers who can use the imagery to strengthen evacuation warnings andother safety measures. This helps the public and other stakeholders better visualize andunderstand the impacts of climate change.
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").

10

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of presentation (continued)
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.
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.
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, 2022 and 2021, 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.
Fair value measurements
FASB ASC 820, Fair Value Measurement, provides a framework for measuring fair value.
That framework provides a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority tounadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and lowest priority to unobservable inputs (Level 3 measurements).
Categorization within the valuation hierarchy is based upon the lowest level of inputthat is significant to the fair value measurement. Valuation techniques used need tomaximize the use of observable inputs and minimize the use of unobservable inputs.
Under this standard, fair value is defined as the exit price, or the amount that would bereceived to sell an asset or paid to transfer a liability in an orderly transaction between
11

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fair value measurements (continued)
market participants as of the measurement date.
The three levels of the fair value hierarchy under FASB ASC 820 are described asfollows:
Level 1 inputs to the valuation methodology are unadjusted quoted prices for
identical assets or liabilities in active markets that the Organization has theability to access.
Level 2 inputs to the valuation methodology include quoted prices for similar
assets or liabilities in active markets; quoted prices for identical assets or
liabilities in inactive markets; inputs other than quoted prices that are observablefor the asset or liability; and, inputs that are derived principally from or
corroborated by observable market data by correlation or other means. If theasset 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
the fair value measurement.
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, 2022 and 2021. 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
12

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Contributions, grants and other income (continued)
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 the restriction.
When a restriction expires (that is, when a stipulated time restriction ends or purpose
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, that are provided by individuals possessing those skills
and would typically need to be purchased if not provided by donation, are recorded attheir fair values in the period received. For the years ended December 31, 2022 and
2021, there were no contributed services meeting the requirements for recognition in
the financial 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.
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.
13

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
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
Furniture and fixtures

5 years
Estimated life or term of thelease, whichever is shorter5 years

LeasesThe Organization determines if an arrangement is a lease at the inception of thecontract. At the lease commencement date, each lease is evaluated to determine whether
it will be classified as an operating or finance lease. The Organization has an operatinglease agreement for certain office space, expiring in 2023.
For leases with a lease term of 12 months or less (a "Short-term" lease), any fixed lease
payments are recognized on a straight-line basis over such term, and are not recognizedon the statements of financial position. The Organization recognizes lease expense forthese leases on a straight-line basis over the lease term. There were no Short-term leases
during 2022.
Lease terms include the noncancellable portion of the underlying leases along with any
reasonably certain lease periods associated with available renewal periods, termination
options and purchase options. The Organization has a lease agreement with lease andnon-lease components, which are generally accounted for separately with amounts
allocated to the lease and non-lease components based on stand-alone prices. For its
office lease, the Organization accounts for the lease and non-lease components as asingle lease. The Organization uses the risk-free discount rate when the rate implicit in
the lease is not readily determinable at the commencement date in determining thepresent value of lease payments.
The lease contains fixed and determinable escalation clauses for which the Organization
recognizes rental expense under these leases on the straight-line basis over the leaseterms, which includes the period of time from when the Organization takes possessionof the leased space; the cumulative expense recognized on the straight-line basis inexcess of the cumulative payments is included in liabilities through December 31, 2021,
prior to the adoption of Accounting Standards Update ("ASU") No. 2016-02, Leases(Topic 842) ("ASC 842"). The lease agreement does not contain any material residual
value guarantees or material restrictive covenants. In connection with the adoption of
ASC 842 as of January 1, 2022, the Organization reclassified these deferred rent
14

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Leases (continued)
liabilities to the operating lease right-of-use asset. In 2021, in accordance with ASC 840,
a deferred rent obligation was recorded and amortized to income over the lease term asa reduction of rent expense.
Intangible assets
Intangible assets, primarily website design costs, 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, and areamortized on a straight-line basis over a five-year period. Amortization expense was$46,107 and $25,294 for the years ended December 31, 2022 and 2021. Intangible assets
consisted of the following as of December 31, 2022 and 2021:
Website design costs
Accumulated amortization

2022

2021

$

535,408 $(308,251)

460,595(262,144)$

227,157 $198,451

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 represent
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.
The expenses that are allocated include the following:
Expense

Method of Allocation

Salaries and wages and employee benefits
Professional fees

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

Information technology
Occupancy
Depreciation, amortization, and other
Recently adopted accounting standards

In February 2016, FASB issued ASC 842, as amended, which requires the recording ofoperating lease right-of-use assets and lease liabilities and expanded disclosure for
operating and finance leasing arrangements. Leases are classified as finance or operating,with classification affecting the pattern and classification of expense recognition in theincome statement. The Organization adopted ASC 842 under the alternative modified
retrospective method on January 1, 2022.

15

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Recently adopted accounting standards (continued)
The Organization adopted the package of practical expedients available at transition thatretained the lease classification under ASC 840 and initial direct costs for any leases thatexisted prior to adoption of the standard. Contracts entered into prior to adoption were
not reassessed for leases or embedded leases. The Organization did not elect thepractical expedient to use hindsight in determining its lease terms. The Organization
made the accounting policy elections to not recognize Short-term leases on thestatements of financial position and to utilize the risk-free discount rate when the rate
implicit in the lease is not readily determinable.
In addition, at the date of initial application, the Organization recorded an operatinglease right-of-use asset and operating lease liability in the amounts of $460,449 and$508,077, respectively.
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.
The Organization adopted ASU 2020-07 as of January 1, 2022.
Subsequent events
In accordance with FASB ASC 855, Subsequent Events, the Organization has evaluatedsubsequent events through May 30, 2023, the date on which these financial statements
were available to be issued. Except as disclosed in Note 14, there were no material
subsequent events that required recognition or additional disclosure in these financial
statements.

NOTE 3.

LIQUIDITY AND AVAILABILITY
The following represents the Organization's financial assets available for general
expenditures within one year as of December 31, 2022 and 2021:
2022
Financial assets at year end:
Cash and cash equivalents
Unconditional promises to give
Grants and contracts receivable
Unbilled contract receivables

2021$ 10,422,741 $ 4,771,009
100,000
200,000
130,994
52,643
1,009
40,062

Total financial assets at year-end

10,654,744

5,063,714

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

7,819,741

2,375,497(7,819,741)(2,375,497)

Financial assets available to meet general
expenditures over the next 12 months

16$ 10,654,744 $ 5,063,714

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 3.

LIQUIDITY AND AVAILABILITY (CONTINUED)The Organization has $10,654,744 and $5,063,714 of financial assets available within
one year of the statements of financial position date to meet cash needs for general andprogram expenditures, including cash and cash equivalents in the amount of$10,422,741 and $4,771,009 for the years ended December 31, 2022 and 2021,
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 $5,500,000 in 2023. 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.

NOTE 4.

CONCENTRATIONS
Credit risk
At December 31, 2022 and 2021, the Organization maintained cash and cash
equivalents with financial institutions in amounts in excess of the coverage provided byfederal insurance limits. The Organization maintains these accounts with a high credit
quality financial institution, and, therefore, management does not believe theOrganization faces a significant risk of loss on these accounts.
Promises to give
As of December 31, 2022, and December 31, 2021, the Organization had unconditional
promises to give from one donor.
Support and revenues
During the year ended December 31, 2022, approximately 51% of the Organization's
total support and revenue was derived from two donors. During the year ended
December 31, 2021, approximately 54% of the Organization's total support and revenue
was derived from three donors.

17

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
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 $64,769 and $64,659 as of December 31,
2022 and 2021, 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 $100,000 and $200,000 as of December
31, 2022 and 2021, respectively. The entire balance is expected to be collected in lessthan one year.
At December 31, 2022 and 2021, there were $500,000 and $1,500,000, respectively, inoutstanding conditional promises to give.

NOTE 7.

PROPERTY AND EQUIPMENTThe Organization's property and equipment consisted of the following at December 31,
2022 and 2021:
2022
Computer equipment
Leasehold improvements
Furniture and fixtures$

Accumulated depreciation
Property and equipment, net

$

2021

815,701 $
720,227
383,687
383,687
136,110
136,110
1,335,498
1,240,024(1,112,219)(992,016)
223,279 $248,008

Depreciation expense was $120,203 and $83,928 for the years ended December 31,
2022 and 2021, respectively.
NOTE 8.

FAIR VALUE MEASUREMENTS
Assets and liabilities measured at fair value are based on one or more of three valuation
techniques identified in the table below. The valuation techniques are as follows:(a)Market approach. Prices and other relevant information generated by market
transactions involving identical or comparable assets or liabilities;(b)

Cost approach. Amount that would be required to replace the service capacity ofan asset (replacement cost); and(c)Income approach. Techniques to convert future amounts to a single present
amount based on market expectations (including present value techniques,
option pricing and excess earnings models).

18

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 8.

FAIR VALUE MEASUREMENTS (CONTINUED)
The following table summarizes the Organization's assets measured at fair value on arecurring basis, categorized by U.S. GAAP's valuation hierarchy as of December 31,
2022:
Description
Cash equivalents
Money market fundLevel 1
$ 4,288,442

Level 2$-$

Level 3

Total-

$ 4,288,442

The fair value is based on the quoted net asset value obtained from the closing pricereported in the active market where it is traded.
NOTE 9.

NET ASSETS WITH DONOR RESTRICTIONS
Net assets with donor restrictions were available for the years ended December 31, 2022
and 2021, as follows:
2022
Programs:
Attribution + Climate Fingerprints
Climate Matters
Realtime Climate
Sea Level Rise
FloodVision
Total

2021

$ 5,279,900 $
1,253,995
1,289,797
995,587
514,899
240,569
570,801
49,690$ 7,819,741 $ 2,375,497

During the years ended December 31, 2022 and 2021, net assets were released fromdonor restrictions by incurring expenses satisfying purpose restrictions or by the passageof time.
2022
Programs:
Sea Level Rise
Climate Matters
Realtime Climate$

Total programs
NOTE 10.

2021

370,802 $287,048
1,309,796
883,440
514,899
1,903,408$ 2,195,497 $ 3,073,896

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 $470,788
and $461,101 for the years ended December 31, 2022 and 2021, respectively.

NOTE 11.

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 $3,025,000 and $2,025,000 for the years ended December
31, 2022 and 2021, respectively.

19

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 11.

RELATED-PARTY TRANSACTIONS (CONTINUED)
During 2022 and 2021, the Organization received support from other organizations
totaling $2,185,000 and $1,500,000, respectively, that are associated with certain Board
members.
During 2022 and 2021, the Organization received support from certain Board members
totaling $7,708 and $115,075, respectively.

NOTE 12.

COMMITMENTS
Operating lease
The Organization has an operating lease for certain office space expiring in September
2023. The lease was last modified in 2019 to increase the office space rented. Total
operating lease expense, for the years ended December 31, 2022 and 2021, was$277,165 and $281,001, respectively.
Maturities of lease liabilities as of December 31, 2022, are as follows:Year ending December 31:

Amount2023
Less: interest$

221,949
576

Present value of lease liabilities$

221,373

Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in themeasurement of lease liabilities:
Operating cash flows from operating leases
Weighted-average remaining lease term (in years):
Operating leases
Weighted-average discount rate (%):
Operating leases
NOTE 13.

$286,704
0.75
0.78

RECENT EVENTS RELATING TO THE DISRUPTION IN THE U.S.
BANKING SYSTEMIn March 2023, the shutdown of certain financial institutions raised economic concerns
over disruption in the U.S. banking system. The U.S. government took certain actions
to strengthen public confidence in the U.S. banking system. However, there can be no
certainty that actions taken by the U.S. government will be effective in mitigating theeffects of financial institution failures on the economy, which may include limits onaccess to short-term liquidity in the near term or other adverse effects. As disclosed in
Note 4, the Organization maintains cash and cash equivalents amounts in excess offederally insured limits in the aggregate amount of $9,672,936 as of December 31, 2022,
and has certain concentrations of credit risk that expose the Organization to risk of loss
if the counterparty is unable to perform as a result of future disruptions in the U.S.
banking system or economy. Given the uncertainty of the situation, the related financial
impact cannot be reasonably estimated at this time.
20

CLIMATE CENTRAL, INC.
(A Nonprofit Organization)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE 14.

SUBSEQUENT EVENTIn February 2023, the Organization extended its office lease through September 30,
2028. Monthly rent of $22,112 is subject to annual fixed increases beginning after thesecond year of the extended term. The lease extension also maintains the letter of credit
requirement disclosed in Note 5 through extended lease term. The Organization has theright to extend the lease term for an additional term of five years.

21