2024 Audited Financial Statements

Seeds of Peace, Inc. Financial Statements December 31, 2024

Seeds of Peace, Inc. Table of Contents December 31, 2024 Independent Auditor’s Report

1–2

Financial Statements Statement of Financial Position

3

Statement of Activities

4

Statement of Functional Expenses

5

Statement of Cash Flows

6

Notes to Financial Statements

7 – 16

Independent Auditor’s Report The Board of Directors of Seeds of Peace, Inc. Opinion We have audited the financial statements of Seeds of Peace, Inc. (a nonprofit organization), which comprise the statement of financial position as of December 31, 2024, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of Seeds of Peace, Inc. as of December 31, 2024, 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.

Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”). 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 Seeds of Peace, Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained 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 in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation 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 Seeds of Peace, Inc.’s ability to continue as a going concern for one year after the date that the financial statements are 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 are free 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 GAAS 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 the aggregate, they could reasonably be expected to influence the judgment made by a reasonable user based on these financial statements.

In performing an audit in accordance with GAAS, 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. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in 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 Seeds of Peace, 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 the financial statements.

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Seeds of Peace, 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.

Prager Metis CPAs, LLC New York, New York February 10, 2026

2

Seeds of Peace, Inc. Statement of Financial Position December 31, 2024

Assets Cash and cash equivalents Investments Grants receivable Other receivable Prepaid expenses Property and equipment, net Intangible assets, net Right-of-use asset, operating lease Security deposits Endowment Cash equivalents Investments Total assets

Liabilities and net assets Liabilities Accounts payable and accrued expenses Lease liability, operating lease

$

1,537,500 20,072 33,258 18,322 112,110 7,281 18,307 36,621 109 7,337 406,823

$

2,197,740

$

237,199 37,658

Total liabilities

274,857

Net assets Without donor restrictions With donor restrictions

1,179,612 743,271

Total net assets

1,922,883

Total liabilities and net assets

$

The accompanying notes are an integral part of these financial statements.

3

2,197,740

Seeds of Peace, Inc. Statement of Activities Year Ended December 31, 2024

Support and revenue Contributions, financial Government grants Program service revenue Investment return Insurance pay-out Net assets released from restriction Satisfaction of purpose restrictions Expiration of time restrictions

Without Donor Restrictions

With Donor Restrictions

$

$

3,061,375 227,813 576,914 66,845 75,079

329,111 22,736 -

Total $

3,390,486 227,813 576,914 89,581 75,079

69,846 15,000

(69,846) (15,000)

-

Total support and revenue

4,092,872

267,001

4,359,873

Expenses Program expenses Regional GATHER Special Camp Total program expenses

1,409,851 907 1,904 1,034,604 2,447,266

-

1,409,851 907 1,904 1,034,604 2,447,266

Supporting services Management and general Fundraising

1,097,030 247,275

-

1,097,030 247,275

Total expenses

3,791,571

-

3,791,571

Loss on disposal of leasehold improvements

522,082

-

522,082

Increase (decrease) in net assets

(220,781)

267,001

46,220

Net assets, beginning of year

1,400,393

476,270

1,876,663

Net assets, end of year

$

1,179,612

$

743,271

The accompanying notes are an integral part of these financial statements.

4

$

1,922,883

Seeds of Peace, Inc. Statement of Functional Expenses Year Ended December 31, 2024

Program Expenses GATHER

Regional Compensation and related expenses Salaries Payroll taxes Employee benefits

$

540,016 46,904 103,750

$

Supporting Services

Special -

$

Camp -

$

131,407 10,229 25,247

Total $

671,423 57,133 128,997

Management and General

Fundraising

$

$

320,424 20,478 61,561

117,881 8,658 22,648

Total Expenses $

1,109,728 86,269 213,206

Total

690,670

-

-

166,883

857,553

402,463

149,187

1,409,203

Direct expenses Background checks Bad debt Bank and credit card fees Computer and IT expenses Consultants Depreciation and amortization Equipment leases and rentals Equipment purchases Insurance Interest Marketing and promotion Meals/food service Office supplies and expenses Printing and copying Program expenses – other Rent and utilities Repairs and maintenance Scholarships Staff and volunteer training Telephone and communications Travel and meetings

108 4,230 453,405 3,069 13,241 6,000 1,969 13,329 542 23,834 51,028 6,670 5,078 136,678

107 800 -

491 180 1,233 -

2,352 67,581 83,500 23,921 49 555 30,819 504 9,842 144,554 3,494 210,340 26 290,184

2,352 108 4,337 522,277 83,500 3,069 37,162 6,049 2,524 44,148 1,046 33,856 196,815 3,494 210,340 6,670 5,104 426,862

25,497 40,921 14,051 258,209 16,781 2,698 62,606 100,726 1,133 3,825 25,777 13,497 1,249 68,590 1,275 9,274 48,458

39,139 12,500 865 39,717 5,867

2,352 25,497 41,029 57,527 792,986 100,281 2,698 65,675 137,888 1,133 9,874 2,524 70,790 14,543 35,105 305,122 3,494 210,340 7,945 14,378 481,187

Total direct expenses

719,181

907

1,904

867,721

1,589,713

694,567

98,088

2,382,368

Total expenses

$

1,409,851

$

907

$

1,904

$

1,034,604

$

2,447,266

The accompanying notes are an integral part of these financial statements.

5

$

1,097,030

$

247,275

$

3,791,571

Seeds of Peace, Inc. Statement of Cash Flows Year Ended December 31, 2024

Cash flows from operating activities Increase in net assets Adjustments for non-cash items included in operating activities Depreciation and amortization Loss on disposal of leasehold improvements Gain on investments Donation of investments Bad debt Amortization of right-of-use asset

$

46,220 100,281 522,082 (73,821) (175,412) 25,497 104,756

Changes in assets and liabilities Grants receivable Contribution receivable Other receivables Prepaid expenses Accounts payable and accrued expenses Refundable advances Payment of operating lease Net cash used in operating activities

(17,773) 15,000 (16,500) (57,694) (565,005) (20,697) (106,821) (219,887)

Cash flows from investing activities Sale of investments Purchase of investments Net cash provided by investing activities

339,657 (15,063) 324,594

Net increase in cash and cash equivalents

104,707

Cash and cash equivalents at beginning of year

1,440,130

Cash and cash equivalents at end of year

$

1,544,837

Supplemental information Interest paid

$

1,348

The accompanying notes are an integral part of these financial statements.

6

Seeds of Peace, Inc. Notes to Financial Statements December 31, 2024 Note

1 Nature of Activities Organization Seeds of Peace, Inc. (hereafter referred to as the “Organization”) is a not-for-profit corporation incorporated in the State of Delaware on March 8, 1993.

The primary purpose of the Organization is to empower young leaders from regions of conflict with the leadership skills required to advance reconciliation and coexistence. Young teens live together in a summer camp for three weeks to learn conflict management skills. After attending camp, the Organization provides participants with follow-up leadership training and dialogue through their college years; and after college, a graduate program to maintain cross-border network and dialogue.

Programs and Services Provided The Organization’s six major program areas include the following: US Programs – Local initiatives for Camp alumni from the United States designed to reinforce relationships and build leadership skills; International – Convening fellowship programs in the Middle East, South Asia, and the United States for Camp alumni and other change-makers designed to accelerate their impact as they work to transform conflict; GATHER – Local and international convenings and fellowship for camp alumni to offer personal and project-based support; Special – Conducting an online course for young adults from India and Pakistan to learn new dialogue skills and operating community based programs in the Middle-East, the United States and Europe with a focus on middle school youth; and Seeds of Peace Camp – Summer leadership development program in Maine for teenagers and educators from communities divided by conflict.

Note

2 Summary of Significant Accounting Policies Basis of Accounting The financial statements of the Organization have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and accordingly reflect all significant receivables, payables, and other liabilities.

Tax-Exempt Status The Organization has been granted tax-exempt status by the Internal Revenue Service under Internal Revenue Code Section 501(c)(3) on July 2, 1993. Accordingly, no provision for federal, state or local income taxes has been recorded. The Organization does not believe its financial statements include any uncertain tax positions.

Major Sources of Income The Organization derives most of its income from contributions from individuals, corporations, foundations, government grants, program service revenue and special events.

Use of Estimates The preparation of financial statements in conformance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates and assumptions.

7

Seeds of Peace, Inc. Notes to Financial Statements December 31, 2024 Note

2 Summary of Significant Accounting Policies (continued) Net Assets Net assets, revenue, gains and losses are classified based on the existence or absence of donoror grantor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions – Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. This classification includes net assets designated by the board or management for a specified purpose.

Net Assets With Donor Restrictions – Net assets subject to donor (or certain grantor) imposed restrictions. Some donor-imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature (endowment) where the donor stipulates that resources be maintained in perpetuity.

Cash Equivalents For purposes of the statement of financial position and the statement of cash flows, the Organization considers as cash equivalents money market funds and all highly liquid resources, such as certificates of deposit with an original maturity date of three months or less.

Property, Equipment and Intangibles The Organization capitalizes certain property, equipment and intangibles with estimated lives of three years or more. Property, equipment and intangibles are stated at cost, or if donated, at fair value on the date of donation. Depreciation and amortization are computed on the straightline and accelerated basis over the respective assets’ estimated useful lives of five to ten years.

Repairs and maintenance are charged to expense as incurred and improvements and betterments that extend useful lives are capitalized.

Contributions The Organization recognizes contributions when cash and other financial assets, nonfinancial assets/services or unconditional promises to give are received. Nonfinancial assets/services are valued based on the type of assets/service received. Conditional promises to give, which have a measurable performance or other barrier and a right of return, are not recognized until the conditions on which they depend have been met. Amounts received prior to the meeting of these conditions are reported as refundable advances in the statement of financial position. At December 31, 2024, the Organization did not have any conditional pledges that were not recognized.

All contributions are considered available for the Organization’s general programs unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted for a purpose by the donor are reported as support with donor restrictions and increases in net assets with donor restrictions. Contributions received with restrictions that are met in the same reporting period are reported as support without donor restrictions and increases in net assets without donor restrictions.

8

Seeds of Peace, Inc. Notes to Financial Statements December 31, 2024 Note

2 Summary of Significant Accounting Policies (continued) Revenue Recognition Investment income and gains are reported based upon the existence or absence of a donor restriction. Restricted investment income is reported as increases in net assets without donor restrictions if any applicable restrictions are met in the reporting period in which the income and gains are recognized. When a restriction expires, net assets with donor restrictions are reclassified to net assets without donor restrictions.

The Organization receives grants from governmental agencies. Depending upon the terms of the grant, it can be either an exchange transaction or a contribution. In accordance with grant provisions, the grant can be an expense reimbursement grant which requires that approved expenses be incurred prior to reimbursement by the grantor. Other grants permit advances of grant funds or full payment of grant funds at the start of the grant. If the grant is an exchange type grant, all unreimbursed expenses, for approved purposes, as of year-end are recorded as receivables and any unexpended advances are recorded as either refundable advances or deferred income. If the grant is a contribution, it is recognized in accordance with the contribution recognition policy described above.

Camp fees revenue relates to fees received in exchange for attending camp and all of the services provided during the campers’ time there. Camp fees are recognized at the conclusion of the camp when obligations are satisfied and benefits are transferred. Camp fees paid in advance are deferred to the period in which the related performance obligations are satisfied.

The Organization receives special events revenue which contains both an exchange component and a conditional contribution component. Both components are recognized when the event takes place. Any event revenue received in advance of the event is recorded as deferred income.

Allowance for Credit Losses The Organization adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 326, Financial Instruments – Credit Losses. FASB ASC 326 significantly changed how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The most significant change in this standard is a shift from the incurred loss model to the expected loss model. Under the standard, disclosures are required to provide users of the financial statements with useful information in analyzing an entity’s exposure to credit risk and the measurement of credit losses.

Financial assets held by the Organization that are subject to the guidance in FASB ASC 326 were trade accounts receivable. The impact of the adoption was not considered material to the financial statements and primarily resulted in new/enhanced disclosures only.

The allowance for credit losses is the Organization’s best estimate of the amount of probable credit losses. At the balance sheet date, the Organization recognizes an expected allowance for credit losses. In addition, also at reporting date, this estimate is updated to reflect any changes in credit risk since the receivable was initially recorded. The Organization updated the allowance for credit losses as of December 31, 2024 based on an analysis of past collection trends, current conditions and reasonable and supportable forecasts and changes in individual payment terms. At January 1, 2024, program receivable amounted to $1,822. At December 31, 2024 and January 1, 2024, there were no allowances for credit losses.

9

Seeds of Peace, Inc. Notes to Financial Statements December 31, 2024 Note

2 Summary of Significant Accounting Policies (continued) Investments All marketable debt and equity securities and mutual funds are measured at fair value on a recurring basis and are reported at their fair market values as of December 31, 2024, in the statement of financial position.

The Organization initially records the investments it receives as a donation at the fair value as of the dates the investments are donated to the Organization and thereafter carries such investments at current fair values.

Functional Allocation of Expenses The costs of providing various programs and other activities have been summarized on a functional basis in the statement of activities and in the statement of functional expenses.

Accordingly, certain costs have been allocated among the programs and supporting services benefited. The expenses that are allocated include salaries and related expenses and outside consultants based on estimated time and effort and all other expenses based on usage. The Organization classifies expenses, which are not directly related to a specific program, as management and general expenses.

Leases Right-of-use (“ROU”) assets represent the Organization’s right to use an underlying asset for the lease term and lease liability represents its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. As most of the Organization’s leases do not provide an implicit rate, the Organization uses a risk-free rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Organization’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Organization will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Organization’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Organization has elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement. The Organization recognizes lease costs associated with short-term leases on a straight-line basis over the lease term.

Note

3 Fair Value Measurement of Investments FASB requires enhanced disclosures about investments that are measured and reported at fair value. FASB establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

10

Seeds of Peace, Inc. Notes to Financial Statements December 31, 2024 Note

3 Fair Value Measurement of Investments (continued) Investments measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 – Investments falling within Level 1 of the fair value hierarchy are valued using inputs based upon unadjusted quoted prices in active markets for identical investments. Investments that are typically included in Level 1 are listed equity securities, publicly traded mutual funds and exchange traded funds.

Level 2 – Investments falling within Level 2 of the fair value hierarchy are valued using significant observable inputs other than unadjusted quoted price in active markets. Examples of Level 2 inputs are model-driven prices, quoted prices for similar investments in active markets, and quoted prices for identical or similar investments in inactive markets. Investments that are typically included in Level 2 are municipal bonds, corporate bonds and government debt securities.

Level 3 – Investments falling within Level 3 of the fair value hierarchy are valued using methodology that is unobservable and significant to the fair value measurement. Level 3 inputs require significant management judgment or estimation. Investments that are typically included in this category are investments in limited partnerships, and investments in private companies or unregistered securities.

The investment’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Note

4 Cash and Cash Equivalents As of December 31, 2024, the components of cash and cash equivalents are as follows: Unrestricted cash Money market funds Restricted for endowment

$

Total

$

1,537,500 7,337 1,544,837

Cash and cash equivalents include cash that is reserved as a compensating balance for a line of credit as part of a lease stipulation as well as cash that is restricted for an endowment.

11

Seeds of Peace, Inc. Notes to Financial Statements December 31, 2024 Note

5 Property, Equipment and Intangibles Property, equipment and intangibles by major class consisted of the following at December 31, 2024:

Depreciable Furniture and fixtures Equipment and software Website design

$

37,330 166,996 169,029

Less accumulated depreciation and amortization

(347,767)

Total

$

25,588

Depreciation and amortization expense was $100,281 for the year ended December 31, 2024.

Note

6 Investments The Organization’s investments are stated at fair values, based on quoted prices in active markets (all Level 1 measurements) and consist of marketable securities and mutual funds. Fair values at December 31, 2024 are summarized as follows:

Total Operating investments Cash (at cost) Equities Small cap mutual fund

Endowment investments Money market funds Stock funds Bond funds

12

Quoted Prices in Active Markets for Identical Assets (Level 1)

$

10,443 8,678 951

$

8,678 951

$

20,072

$

9,629

$

7,337 221,232 185,591

$

7,337 221,232 185,591

$

414,160

$

414,160

Seeds of Peace, Inc. Notes to Financial Statements December 31, 2024 Note

6 Investments (continued)

Investment return consists of Interest/dividends Realized gains Unrealized gains

Note

$

15,760 66,175 7,646

$

89,581

7 Endowment As required by GAAP, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. The Organization’s endowment is comprised of one donor restricted fund (the “Fund”) which was established to provide investment future program support. When amounts are appropriated for expenditure by the Organization in a manner consistent with the standard of prudence prescribed by New York Prudent Management of Institutional Funds Act (“NYPMIFA”), the Organization reclassifies net assets with donor restrictions to net assets without donor restrictions.

The Organization follows the provisions of NYPMIFA which allows appropriation or accumulation of so much of the donor-restricted endowment as is prudent for the uses, benefits, purposes and duration for which the Fund is established subject to the intent of the donor as expressed in the gift instrument. As a result, appropriations below the historic dollar value of the Fund’s original gift instrument are permitted unless: the donor of an endowment fund established before September 17, 2010, who is available, opts to retain the historic dollar value limit or the donor of an endowment fund received after September 17, 2010, includes an explicit prohibition on spending below historic dollar value.

In deciding whether to appropriate from an endowment fund, the Organization’s Board of Directors must act in good faith with the care that an ordinary prudent person in a like position would exercise under similar circumstances. In addition, the following factors must be considered prior to appropriation: (1) (2) (3) (4) (5) (6) (7) (8)

The duration and preservation of the Fund The purposes of the Organization and the donor-restricted fund General economic conditions The possible effect of inflation and deflation The expected total return from income and the appreciation of the investments Other resources of the Organization Alternatives to expenditure of the Fund, giving due consideration to the effect that such alternatives may have on the Organization The Organization’s investment policies

13

Seeds of Peace, Inc. Notes to Financial Statements December 31, 2024 Note

7 Endowment (continued) Investment Return Objectives, Risk Parameters and Strategies: The Organization has adopted investment and spending policies, approved by the Board of Directors, for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment funds while also maintaining the purchasing power of those endowment assets over the longterm. Accordingly, the investment process seeks to achieve an after-cost total real rate of return, including investment income, with acceptable levels of risk.

Endowment assets are invested in a mix that is intended to result in a consistent inflationprotected rate of return that has sufficient liquidity to make an annual distribution, if appropriate, while growing the funds if possible. Therefore, the Organization expects its endowment assets, over time, to produce an average rate of return of approximately 1% annually. Actual returns in any given year may vary from this amount. Investment risk is measured in terms of the total endowment fund; investment assets and allocation between asset classes and strategies are managed in order not to expose the fund to unacceptable levels of risk.

Spending Policy: The donor restriction states that annual distributions from the investment account can be made to support the facilitator training course in Jerusalem. For the first five years, the aggregate distribution is not allowed to exceed the greater of $20,000 or 5% of the total fair market value of the account. After these five years have ended, the aggregate distribution cannot exceed the greater of $25,000 or 7% of the total fair market value of the account. The Organization expects the current spending policy to allow its endowment funds to grow at a nominal average rate of 1% annually, which is consistent with the Organization’s objective to maintain the purchasing power of the endowment assets as well as to provide additional real growth through investment return.

Changes and composition of endowment net assets for the year ended December 31, 2024 are as follows:

Note

Donor restricted endowment at beginning of year Investment return

$

391,424 22,736

Donor restricted endowment at end of year

$

414,160

8 Pension Plan On February 1, 2002, the Organization adopted a salary reduction, 401(K) retirement plan that is funded by voluntary employee contributions and discretionary employer contributions. The plan was converted to a tax-deferred 403(b) plan in 2010. Organization contributions to the plan amounted to $6,000 for the year ended December 31, 2024 and is included as a component of employee benefits on the statement of functional expenses.

14

Seeds of Peace, Inc. Notes to Financial Statements December 31, 2024 Note

9 Leases On March 17, 2022, the Organization incurred a lease liability by entering into a noncancellable operating lease agreement to obtain a ROU asset. The lease is set to expire in 2025. The lease liability and ROU asset represent the present value of the Organization’s lease obligations and the value of its right to use the leased office space over the remaining term of the lease. Since the lease does not contain a stated interest rate, the lease payments are discounted using the Organization’s incremental borrowing rate on the lease commencement date.

As of December 31, 2024, the minimum aggregate annual lease commitments are as follows: Year ending December 31, 2025 Less imputed interest (7%)

$

37,988 (330)

Present value of lease liabilities

$

37,658

Total rent expense charged to operations for the year ended December 31, 2024 was $159,607.

As of December 31, 2024, the Organization’s weighted average effective discount rate was 7% and the weighted average remaining lease term was 3 months.

Camp Lease The Organization leases property located in Pleasant Lake, Otisfield, Maine, under a short-term, non-cancelable operating lease that expired in 2024. The lease was not renewed.

Note 10 Concentrations Insurance Coverage The Organization maintains its cash, cash equivalents, and investments in various accounts. The Federal Deposit Insurance Corporation (“FDIC”) insures bank deposits up to $250,000 per financial institution. The Securities Investor Protection Corporation insures cash and securities, including money market funds, up to $500,000 per financial institution. At times, the balances of the accounts have exceeded the insured limits during the year ended December 31, 2024.

Note 11 Liquidity and Availability of Financial Assets The Organization regularly monitors liquidity required to meet its operating needs and other obligations as they come due.

For purposes of analyzing resources available to meet general expenditures over a 12-month period, the Organization considers all expenditures related to its ongoing activities to be general expenditures. Amounts available for general expenditures over a 12-month period include donor-restricted amounts that are available for ongoing programmatic and support expenditures.

15

Seeds of Peace, Inc. Notes to Financial Statements December 31, 2024 Note 11 Liquidity and Availability of Financial Assets (continued) The following reflects the Organization’s financial assets as of December 31, 2024 reduced by amounts not available for general use within one year because of contractual, donor-imposed, or internal restrictions and designations:

Financial assets Cash and cash equivalents Receivables, net Investments Total financial assets

$

1,537,500 51,580 434,232 2,023,312

Less those unavailable for general expenditures within one year Cash restricted for endowment Investments restricted for endowment Financial assets available to meet cash needs for general expenditures within one year

(7,337) (406,823) $

1,609,152

Note 12 Net Assets With Donor Restrictions As of December 31, 2024, net assets with donor restrictions are available as follows: Subject to passage of time or purpose Multinational programming

$

Endowment Subject to spending policy and appropriation Total

329,111 414,160

$

743,271

Note 13 Revenue from Contracts with Customers All of the revenue derived from contracts with customers during 2024 was fully earned in the same annual reporting period. Detail of revenue from contracts with customers during the year ended December 31, 2024 is as follows: Camp fees and miscellaneous

$

576,914

Note 14 Subsequent Events Management has evaluated subsequent events through February 10, 2026, which is the date the financial statements were available to be issued.

16