Financial Report - June 30, 2025

The Joffrey Ballet Financial Report June 30, 2025

The Joffrey Ballet

Contents Independent Auditor's Report

1-2

Financial Statements Statement of Financial Position

3

Statement of Activities

4

Statement of Functional Expenses

5-6

Statement of Cash Flows

7

Notes to Financial Statements

8-21

Independent Auditor's Report To the Board of Directors The Joffrey Ballet Opinion We have audited the financial statements of The Joffrey Ballet (the "Organization"), which comprise the statement of financial position as of June 30, 2025 and 2024 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 accompanying financial statements present fairly, in all material respects, the financial position of the Organization as of June 30, 2025 and 2024 and the changes in its net assets, functional expenses, and 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 States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audits of the Financial Statements section of our report. We are required to be independent of the Organization and to meet our ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. 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 the Organization's ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued.

Auditor’s Responsibilities for the Audits 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 audits 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 would influence the judgment made by a reasonable user based on the financial statements.

1

To the Board of Directors The Joffrey Ballet In performing audits in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audits.

• 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 audits 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 the Organization'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 the Organization'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 audits, significant audit findings, and certain internal control-related matters that we identified during the audits.

November 14, 2025

2

The Joffrey Ballet

Statement of Financial Position June 30, 2025 and 2024 2025

2024

3,540,199 $ 7,145,635

3,978,984 6,541,772

4,222,009 241,063 23,268 177,648 943,498 24,743,809 2,013,237 21,245 21,076,608

3,231,853 260,805 189,542 974,579 16,751,866 37,179 20,461,281

$

64,148,219 $

52,427,861

$

620,282 $ 1,426,763

534,488 1,042,190

2,047,045

1,576,678

3,331,925 3,048,784 22,169

2,400,000 2,563,428 38,247

Total liabilities

8,449,923

6,578,353

Net Assets Without donor restrictions: Undesignated Board designated

11,799,445 10,609,187

12,778,458 10,154,108

22,408,632

22,932,566

33,289,664

22,916,942

55,698,296

45,849,508

64,148,219 $

52,427,861

Assets Cash and cash equivalents Investments Receivables: Contributions receivable - Net Other accounts receivable Inventory Other assets Prepaid expenses Endowment investment Endowment pledges receivable - Net Right-of-use assets Property and equipment - Net

$

Total assets Liabilities and Net Assets Liabilities Accounts payable and accrued expenses: Trade accounts payable Accrued liabilities and other Total accounts payable and accrued expenses Line of credit Deferred revenue Lease liabilities

Total without donor restrictions With donor restrictions Total net assets $

Total liabilities and net assets

See notes to financial statements.

3

The Joffrey Ballet

Statement of Activities Years Ended June 30, 2025 and 2024 (with comparative totals for 2024) Without Donor Restrictions Revenue, Gains, and Other Support Contributions of cash and cash equivalents Contributions of nonfinancial assets Grainger Academy Performance Community engagement - Net Special events Other income Endowment draw Contributions released from restrictions

$

Total revenue, gains, and other support Expenses Program services: Performance Grainger Academy Community engagement

2025 With Donor Restrictions

Total

Without Donor Restrictions

2024 With Donor Restrictions

Total

5,623,422 $ 805,018 3,206,996 14,148,336 180,541 2,872,629 455,855 637,270 3,301,687

11,771,173 $ (637,270) (3,301,687)

17,394,595 $ 805,018 3,206,996 14,148,336 180,541 2,872,629 455,855 -

5,726,028 $ 699,129 2,364,142 12,968,530 213,008 2,089,543 336,836 513,679 2,082,054

3,854,296 $ (513,679) (2,082,054)

9,580,324 699,129 2,364,142 12,968,530 213,008 2,089,543 336,836 -

31,231,754

7,832,216

39,063,970

26,992,949

1,258,563

28,251,512

21,315,346 3,386,801 895,655

-

21,315,346 3,386,801 895,655

19,321,668 2,782,107 847,517

-

19,321,668 2,782,107 847,517

2,436,991 2,459,049

-

2,436,991 2,459,049

2,220,875 2,297,578

-

2,220,875 2,297,578

620,454

-

620,454

543,754

-

543,754

Total expenses

31,114,296

-

31,114,296

28,013,499

-

28,013,499

Increase (Decrease) in Net Assets - Before other items

117,458

7,832,216

7,949,674

(1,020,550)

1,258,563

238,013

(100,000) 605,167 (1,146,559)

100,000 2,440,506 -

2,440,506 605,167 (1,146,559)

731,938 (1,092,439)

2,335,572 -

2,335,572 731,938 (1,092,439)

Total other items

(641,392)

2,540,506

1,899,114

(360,501)

2,335,572

1,975,071

(Decrease) Increase in Net Assets

(523,934)

10,372,722

9,848,788

(1,381,051)

3,594,135

2,213,084

22,932,566

22,916,942

45,849,508

24,313,617

19,322,807

43,636,424

22,408,632 $

33,289,664 $

55,698,296 $

22,932,566 $

22,916,942 $

45,849,508

Support services: Management and general Fundraising Costs and direct benefits to donor-related special events

Other Items Transfers Endowment investment income - Net Investment income - Net Depreciation

Net Assets - Beginning of year Net Assets - End of year

See notes to financial statements.

$

4

The Joffrey Ballet

Statement of Functional Expenses Year Ended June 30, 2025

Performance Salaries Stipends Pension retirement Other employee benefits Payroll taxes Legal Accounting/Payroll Other services Advertising and promotion Office expenses Information technology Royalties Occupancy Travel Conference, convention, and meetings Insurance Production services Orchestra Event meals and equipment Credit card and bank fees and miscellaneous

$

Subtotal Depreciation Total functional expenses

$

See notes to financial statements.

Program Services Grainger Community Academy Engagement

Support Services Total Program Services

Management and General

Fundraising

Total Support Services

Total

6,072,286 $ 250 615,765 1,102,913 544,546 167,213 891,131 2,314,043 21,786 168,403 697,930 1,918,448 591,502

1,343,851 $ 96,419 34,736 121,260 143,960 530 405,638 174,482 23,892 98,093 6,518 522,884 109,606

494,309 $ 10,862 48,584 50,148 61,758 2,467 9,238 45,118 59,153

7,910,446 $ 96,669 661,363 1,272,757 738,654 167,743 1,358,527 2,488,525 48,145 275,734 704,448 2,486,450 760,261

1,515,718 $ 154,801 88,530 97,077 234,272 124,236 16,363 6,119 44,085 46,991 32,668

1,242,538 $ 98,501 66,316 105,157 211,448 152,919 50,178 68,806 40,718 82,311

2,758,256 $ 253,302 154,846 202,234 234,272 124,236 227,811 152,919 56,297 112,891 87,709 114,979

10,668,702 96,669 914,665 1,427,603 940,888 402,015 124,236 1,586,338 2,641,444 104,442 388,625 704,448 2,574,159 875,240

28,773 128,494 4,118,202 1,365,644 5,433

1,273 73,756 47,946 3,330

7,943 9,958 58,545 34,792 2,780

37,989 212,208 4,224,693 1,400,436 11,543

50,773 17,321 -

45,728 13,640 4,805 885,891

96,501 30,961 4,805 885,891

134,490 243,169 4,229,498 1,400,436 897,434

562,584

178,627

-

741,211

8,037

10,547

18,584

759,795

21,315,346

3,386,801

895,655

25,597,802

2,436,991

3,079,503

5,516,494

31,114,296

625,705

335,000

45,229

1,005,934

78,672

61,953

140,625

1,146,559

21,941,051 $

3,721,801 $

940,884 $

26,603,736 $

2,515,663 $

3,141,456 $

5,657,119 $

32,260,855

5

The Joffrey Ballet

Statement of Functional Expenses Year Ended June 30, 2024

Performance Salaries Stipends Pension retirement Other employee benefits Payroll taxes Legal Accounting/Payroll Other services Advertising and promotion Office expenses Information technology Royalties Occupancy Travel Conference, convention, and meetings Insurance Production services Orchestra Event meals and equipment Credit card and bank fees and miscellaneous

$

Subtotal Depreciation Total functional expenses

$

See notes to financial statements.

Program Services Grainger Community Academy Engagement

Support Services Total Program Services

Management and General

Fundraising

Total Support Services

Total

5,749,705 $ 551,867 860,136 519,351 165,525 1,003,387 2,095,662 24,330 146,766 484,755 2,096,758 560,728

1,013,193 $ 79,386 25,451 102,112 99,814 460 556,152 77,294 21,274 91,294 4,873 469,864 39,701

421,727 $ 9,792 47,909 40,863 108,360 530 5,128 9,616 35,294 65,611

7,184,625 $ 79,386 587,110 1,010,157 660,028 165,985 1,667,899 2,173,486 50,732 247,676 489,628 2,601,916 666,040

1,432,411 $ 140,038 77,192 97,855 73,107 116,710 16,847 5,696 45,690 47,576 47,379

1,129,104 $ 78,586 51,103 96,735 196,630 99,860 56,874 81,515 37,985 62,629

2,561,515 $ 218,624 128,295 194,590 73,107 116,710 213,477 99,860 62,570 127,205 85,561 110,008

9,746,140 79,386 805,734 1,138,452 854,618 239,092 116,710 1,881,376 2,273,346 113,302 374,881 489,628 2,687,477 776,048

42,333 96,460 3,475,868 941,834 43,552

1,889 70,554 28,602 -

4,278 9,526 52,443 32,874 3,566

48,500 176,540 3,556,913 974,708 47,118

96,970 16,569 -

85,689 13,048 2,030 807,329

182,659 29,617 2,030 807,329

231,159 206,157 3,558,943 974,708 854,447

462,651

100,194

-

562,845

6,835

42,215

49,050

611,895

19,321,668

2,782,107

847,517

22,951,292

2,220,875

2,841,332

5,062,207

28,013,499

600,685

316,283

42,702

959,670

74,276

58,493

132,769

1,092,439

19,922,353 $

3,098,390 $

890,219 $

23,910,962 $

2,295,151 $

2,899,825 $

5,194,976 $

29,105,938

6

The Joffrey Ballet

Statement of Cash Flows Years Ended June 30, 2025 and 2024 2025

2024

9,848,788 $

2,213,084

1,146,559 (2,000,246) (440,767) 82,500 15,934 (8,202,085)

1,092,439 (2,055,416) (594,060) 150,355 (1,400,000)

(1,072,515) 19,742 31,081 11,894 (24,214) 384,573 (16,078) 485,356 (23,268)

(68,939) (56,259) (387,430) (16,662) 867,823 (351,983) (178,440) 479,850 -

247,254

(305,638)

(12,480,663) 6,325,870 (1,651,878)

(1,482,053) 973,838 (4,057,767)

(7,806,671)

(4,565,982)

6,188,707 931,925

1,400,000 2,400,000

7,120,632

3,800,000

Net Decrease in Cash and Cash Equivalents

(438,785)

(1,071,620)

Cash and Cash Equivalents - Beginning of year

3,978,984

5,050,604

Cash Flows from Operating Activities Increase in net assets Adjustments to reconcile increase in net assets to net cash and cash equivalents from operating activities: Depreciation Endowment investment gain - Net Investment gain - Net Bad debt expense Amortization of right-of-use assets Donor-restricted contributions for long-term purposes Changes in: Contributions receivable Other receivables Prepaid expenses Other assets Accounts payable Accrued liabilities and other Operating lease liability Deferred revenue Inventory

$

Net cash and cash equivalents provided by (used in) operating activities Cash Flows from Investing Activities Purchases of investments Proceeds from sales of investments Additions to property and equipment Net cash and cash equivalents used in investing activities Cash Flows from Financing Activities Contributions received for long-term purposes Proceeds from line of credit Net cash and cash equivalents provided by financing activities

Cash and Cash Equivalents - End of year

$

3,540,199 $

3,978,984

Supplemental Cash Flow Information Capital expenditures included in accounts payable and accrued expenses Cash paid for interest

$

259,605 $ 171,067

149,871 30,033

See notes to financial statements.

7

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 1 - Nature of Business The Joffrey Ballet (the “Organization”) is a nonprofit corporation incorporated in the state of Illinois that commenced operations on May 1, 1995. The Organization is a classically based dance company whose signature elements include the incorporation of popular culture, modern technology, and contemporary ideas into its ballets. The repertoire emphasizes works by contemporary American and international artists and revivals of the 20th-century masterworks. The Organization's operations include the Grainger Academy of the Joffrey Ballet (the "Grainger Academy") and community engagement programs. Classes and programs are for various age groups at varying levels of dance instruction. The Organization conducts its activities from the Joffrey Tower, its building located in Chicago, Illinois; its new studios on South Wabash; and throughout the Chicago Public School System, and its subscription series and the Nutcracker are performed at the Lyric Opera of Chicago. The Organization is supported primarily through ticket sales, academy revenue, and contributions (cash and in kind).

Note 2 - Significant Accounting Policies Basis of Presentation The financial statements of the Organization have been prepared on the basis of generally accepted accounting principles (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from those estimates.

Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with maturities of three months or less when purchased. The Organization maintains its cash and cash equivalents in bank deposit accounts that at times may exceed federally insured limits. The Organization has not experienced any losses in such accounts.

Contributions Receivable The Organization's contributions receivable are primarily composed of pledges. These are intended by donors to fund the Organization's operations and the endowment and are stated at the present value of the expected future cash flows. Discounts are amortized to contribution revenue over the duration of the pledge. An allowance for uncollectible pledges receivable is calculated based upon management's judgment, including such factors as prior collection history, the type of contribution, and the nature of the fundraising activity.

Other Receivables Other receivables generally include tuition payments for the Grainger Academy and community engagement activities. An allowance for credit losses is based on specific identification of uncollectible accounts, the Organization's historical collection experience, and consideration for future economic conditions. No allowance was deemed necessary at June 30, 2025 and 2024.

Investments Investments are presented at fair value. The Organization's investments are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to these risk factors, it is reasonably possible that changes in the value of the investments will occur in the near term and could materially affect the amounts reported in the financial statements.

8

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 2 - Significant Accounting Policies (Continued) Property and Equipment Property and equipment are recorded at cost. Donated property and equipment are recorded as assets at their estimated fair value on the date of contribution. The Organization capitalizes all property and equipment purchases over $1,000. Costs of maintenance and repairs are charged to expense when incurred. Depreciation is recorded on the straight-line basis over the estimated useful lives of the assets, which are 3 to 20 years for sets, costumes, and props and 4 to 10 years for furniture and fixtures, equipment, and other property.

Classification of Net Assets Net assets of the Organization are classified based on the presence or absence of donor-imposed restrictions.

Net assets without donor restrictions: Net assets that are not subject to donor-imposed restrictions or for which the donor-imposed restrictions have expired or been fulfilled. Net assets in this category may be expended for any purpose in performing the primary objectives of the Organization.

Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and grantors.

Some donor restrictions are temporary in nature; those restrictions will be met by actions of the Organization or by the passage of time. Other donor restrictions are perpetual in nature, where the donor has stipulated the funds be maintained in perpetuity.

Earnings, gains, and losses on donor-restricted net assets are classified as net assets without donor restrictions unless specifically restricted by the donor or by applicable state law.

Board-designated Net Assets Board-designated net assets are net assets without donor restrictions designated by the board primarily for capital improvements, future projects, and innovation. These designations are based on board actions, which can be altered or revoked at a future time by the board (see Note 8).

Revenue Recognition The Organization recognizes performance and academy revenue in accordance with guidance for revenue from contracts with customers. Revenue from contracts with patrons and students is reported at the amount that reflects the consideration to which the Organization expects to be entitled in exchange for providing performances and instruction. Revenue is recognized as performance obligations are satisfied, which generally occurs when performances or classes are held. Payments for ticket sales are generally received in advance of the related performance; payments for classes are received in advance or in installments over the duration of the program. Cash received from ticket sales for the next fiscal year's programs and tuition payments received in advance for classes that take place after the fiscal year end are recorded as deferred revenue. The Organization had deferred revenue of $3,048,784, $2,563,428, and $2,083,578 as of June 30, 2025; June 30, 2024; and July 1, 2023, respectively. The Organization had accounts receivable of $141,899, $196,735, and $89,646 as of June 30, 2025; June 30, 2024; and July 1, 2023, respectively. Special event revenue is composed of an exchange element based upon the direct benefits donors receive and a contribution element for the difference. Special event revenue is recognized when the event takes place. Community engagement revenue relates to programming presented to Chicago Public School groups or other organizations. The revenue is reported net of discounts and fee waivers provided to these organizations. Revenue is recognized when these programs are held.

9

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 2 - Significant Accounting Policies (Continued) Contributions Contributions of cash and other assets, including unconditional promises to give in the future, are reported as revenue when received, measured at fair value. Contributions with donor-imposed time or purpose restrictions are reported as contributions with donor restrictions. All other contributions are reported as contributions without donor restrictions. Contributions without donor-imposed restrictions and contributions with donor-imposed time or purpose restrictions that are met in the period in which the gift is received are both reported as unrestricted support.

Contributions of Nonfinancial Assets Contributions of nonfinancial assets are reflected in contributions and expenses recorded in the corresponding functional expense category in the accompanying statement of activities at their estimated fair value. The Organization has recorded in-kind contributions, which include professional services, transportation, and event services, at their estimated fair values. See Note 16 for additional information.

Leases The Organization has an operating lease for warehouse space and a finance lease for office equipment.

During the year ended June 30, 2024, the lease for the warehouse space ended. The Organization recognizes expense for leases on a straight-line basis over the lease term. The Organization made a policy election not to separate lease and nonlease components for the warehouse lease. Therefore, all payments are included in the calculation of the right-of-use asset and lease liability.

The Organization has operating leases for office equipment, academy summer program housing, and stage rental for performances with lease terms of one year or less that the Organization elected to account for as short-term leases. As these leases are short-term leases, they are not included in the rightof-use asset and lease liability. Total expense related to office equipment and academy summer program housing short-term leases and academy performance space rental was $347,677 and $265,921 for 2025 and 2024, respectively. Total theater rental expenses at the Lyric Opera House were $734,038 and $685,091 for 2025 and 2024, respectively.

The Organization elected to use the risk-free rate as the discount rate for calculating the right-of-use asset and lease liability in place of the incremental borrowing rate for the operating and finance leases.

Income Taxes The Organization is a not-for-profit corporation and is exempt from tax under the provisions of Internal Revenue Code Section 501(c)(3).

Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions affecting the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Advertising Expense Advertising expense is charged to expense during the year in which it is incurred. Advertising expense for exchange-related transactions is included in program services. Advertising expense for 2025 and 2024 was $2,641,444 and $2,273,346, respectively.

10

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 2 - Significant Accounting Policies (Continued) Functional Allocation of Expenses Costs of providing the program and support services have been reported on a functional basis in the statement of activities. Costs have been allocated between the various program and support services on the basis of square footage for depreciation, facilities, insurance, and other services. Payroll taxes, retirement benefits, information technology, and other employee benefits were allocated based on related salary allocations. Although the methods of allocation used are considered appropriate, other methods could be used that would produce different amounts.

Subsequent Events The financial statements and related disclosures include evaluation of events up through and including November 14, 2025, which is the date the financial statements were available to be issued.

Note 3 - Contributions Receivable Included in contributions receivable are several unconditional promises to give generated from a campaign. They are included as follows:

Less than one year One to two years More than two years

$

Subtotal Less discount to present value $

Total

2025

2024

3,268,536 $ 2,067,000 1,010,000

2,290,187 525,000 460,000

6,345,536

3,275,187

(110,290)

(43,334)

6,235,246 $

3,231,853

Contributions receivable, net of discount and allowance, are restricted as follows for the years ended June 30:

Contributions receivable for operations Contributions receivable for endowment Total contributions receivable

2025

2024

$

4,222,009 $ 2,013,237

3,231,853 -

$

6,235,246 $

3,231,853

The discount rate used in determining the fair value of contributions receivable ranged from 3.68 to 4.71 percent as of June 30, 2025 and 2024.

Note 4 - Fair Value Measurements Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provide a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes the inputs and valuation techniques used to measure fair value.

Fair values determined by Level 1 inputs use quoted prices in active markets for identical assets that the Organization has the ability to access.

Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly.

These Level 2 inputs include quoted prices for similar assets in active markets and other inputs, such as interest rates and yield curves, that are observable at commonly quoted intervals.

11

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 4 - Fair Value Measurements (Continued) Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset. These Level 3 fair value measurements are based primarily on management’s own estimates using pricing models, discounted cash flow methodologies, or similar techniques taking into account the characteristics of the asset.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Organization’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset.

The following tables present information about the Organization’s assets measured at fair value on a recurring basis at June 30, 2025 and 2024 and the valuation techniques used by the Organization to determine those fair values: Assets Measured at Fair Value on a Recurring Basis at June 30, 2025 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) June 30, 2025 Investments: Bond mutual funds Equity mutual funds Exchange-traded funds

1,204,797 $ 5,224,406 700,512

-

Total investments

7,129,715

-

-

7,129,715

Endowment investments: Bond mutual funds Equity mutual funds Exchange-traded funds

1,683,343 21,640,200 1,089,863

-

-

1,683,343 21,640,200 1,089,863

Total endowment investments

24,413,406

-

-

24,413,406

31,543,121 $

-

Total assets

$

$

12

$

$

-

-

$

$

1,204,797 5,224,406 700,512

31,543,121

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 4 - Fair Value Measurements (Continued) Assets Measured at Fair Value on a Recurring Basis at June 30, 2024 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) June 30, 2024 Investments: Bond mutual funds Equity mutual funds Exchange-traded funds

1,153,166 $ 4,630,615 730,971

-

Total investments

6,514,752

-

-

6,514,752

Endowment investments: Bond mutual funds Equity mutual funds Exchange-traded funds

1,018,799 13,758,720 1,885,530

-

-

1,018,799 13,758,720 1,885,530

Total endowment investments

16,663,049

-

-

16,663,049

23,177,801 $

-

Total assets

$

$

$

-

$

-

$

$

1,153,166 4,630,615 730,971

23,177,801

Not included in the above tables is $346,323 and $115,837 in cash and money market funds as of June 30, 2025 and 2024, respectively.

Note 5 - Property and Equipment Property and equipment as of June 30 are summarized as follows:

Land Buildings Building improvements Furniture, fixtures, and equipment Sets, costumes, and props Nutcracker sets, costumes, and props Website redesign Construction in progress

$

Total cost Accumulated depreciation: Buildings Building improvements Furniture, fixtures, and equipment Sets, costumes, and props Nutcracker sets, costumes, and props Website redesign Total accumulated depreciation Net property and equipment

$

2025

2024

1,300,000 $ 23,618,224 2,748,916 2,425,498 526,607 2,402,924 162,200 1,513,069

1,300,000 23,618,224 2,441,009 2,335,909 526,607 2,391,254 162,200 160,349

34,697,438

32,935,552

8,952,188 430,299 2,150,085 499,880 1,431,618 156,760

8,364,441 218,913 2,034,289 490,361 1,239,147 127,120

13,620,830

12,474,271

21,076,608 $

20,461,281

Depreciation expense for 2025 and 2024 was $1,146,559 and $1,092,439, respectively.

13

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 6 - Leases The Organization was obligated under an operating lease for warehouse space, which expired in June 2024. The right-of-use asset and related lease liability have been calculated using a discount rate of 2.84 percent.

The Organization leases office equipment under a long-term lease arrangement that is classified as a finance lease. Under the terms of the lease agreement, payment of $1,414 is due monthly through October 2026. The right-of-use asset and related lease liability have been calculated using a discount rate of 2.88 percent.

Expenses recognized under these leases for the years ended June 30, 2025 and 2024 consist of the following: 2025 Lease cost: Finance lease cost: Amortization of right-of-use assets Interest on lease liabilities Operating lease cost Total lease cost Other information: Operating cash flows from finance lease - Interest Operating cash flows from operating leases Financing cash flows from finance lease

2024

$

15,934 $ 890 -

15,934 1,346 125,400

$

16,824 $

142,680

$

890 $ 16,968

1,346 151,338 15,662

The future minimum lease payments under finance leases are as follows: Years Ending June 30 2026 2027

Total Payments $

Total

16,968 5,656 22,624

Less amount representing interest

455

Present value of net minimum lease payments $

22,169

Beginning in July 2020, the Organization has a seven-year license agreement with the Lyric Opera for all its subscription series and holiday performances, which is not included in the lease activity above based on the nature of this agreement. Subsequent to year end, the Organization extended its license agreement with the Lyric Opera through June 2034.

14

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 7 - Net Assets The Organization's board has designated a portion of its funds without donor restrictions for the specific uses detailed below as of June 30:

Future Projects Fund Building Improvements Fund Eric B. Eatherly Scholarships Women's Board Tribute Fund

$

Total Operating cash reserve Total board-designated net assets

$

2025

2024

2,661,647 $ 2,146,284 88,278 21,674

3,417,169 2,185,983 83,513 16,053

4,917,883

5,702,718

5,691,304

4,451,390

10,609,187 $

10,154,108

The Organization had net assets with donor restrictions consisting of the following as of June 30: 2025 Subject to expenditures for a specified purpose: Artistic Innovation Fund Nutcracker Capital Performances Community engagement Grainger Academy

$

Total subject to expenditures for a specified purpose Subject to the passage of time: Contributions related to future events Pledges receivable Total subject to the passage of time Subject to endowment spending policy and appropriation: Rudolph Nureyev Fund and The Joffrey Ballet The Mary B. Galvin Artistic Director Fund Scholarships Abbott Academy director Community Engagement Bridge Program Grainger Academy of The Joffrey Ballet Artistic Innovation Fund Total subject to endowment spending policy and appropriation Total net assets with donor restrictions

$

588,111 $ 858,712 628,313 700,000 115,000 15,000

2024 642,500 858,712 800,000 1,065,965 215,000 30,000

2,905,136

3,612,177

2,078,482 1,549,000

1,353,729 1,199,171

3,627,482

2,552,900

3,803,653 7,145,894 2,003,966 3,591,555 2,117,993 5,130,747 2,963,238

3,458,699 6,497,831 1,603,588 3,265,836 1,925,911 -

26,757,046

16,751,865

33,289,664 $

22,916,942

Net assets were released from restrictions due to the passage of time or by incurring expenses to satisfy the purposes specified by donor grant agreements as follows:

Time-restricted pledges Purpose-restricted pledges Total

15

2025

2024

$

455,000 $ 2,846,687

2,072,054 10,000

$

3,301,687 $

2,082,054

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 8 - Donor-restricted Endowments The Organization's endowment includes donor-restricted endowment funds. Net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions.

Interpretation of Relevant Law The Organization is subject to the State Prudent Management of Institutional Funds Act (SPMIFA) and, thus, classifies amounts in its donor-restricted endowment funds as net assets with donor restrictions because those net assets are time restricted until the board of directors appropriates such amounts for expenditures. Most of those net assets also are subject to purpose restrictions that must be met before reclassifying those net assets to net assets without donor restrictions. The board of directors of the Organization had interpreted SPMIFA as not requiring the maintenance of purchasing power of the original gift amount contributed to an endowment fund, unless a donor stipulates the contrary. As a result of this interpretation, when reviewing its donor-restricted endowment funds, the Organization considers a fund to be underwater if the fair value of the fund is less than the sum of (a) the original value of initial and subsequent gift amounts donated to the fund and (b) any accumulations to the fund that are required to be maintained in perpetuity in accordance with the direction of the applicable donor gift instrument. The Organization has interpreted SPMIFA to permit spending from underwater funds in accordance with the prudent measures required under the law. Additionally, in accordance with SPMIFA, the Organization considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:       

The duration and preservation of the fund The purpose of the Organization and the donor-restricted endowment fund General economic conditions The possible effect of inflation and deflation The expected total return from income and the appreciation of investments Other resources of the Organization The investment policies of the Organization Endowment Net Asset Composition by Type of Fund as of June 30, 2025 Without Donor With Donor Restrictions Restrictions Total Donor-restricted endowment funds: Original donor-restricted gift amount and amounts required to be maintained in perpetuity by the donor $ Accumulated investment gains

-

$

20,118,388 $ 4,625,421

20,118,388 4,625,421

Total donor-restricted endowment funds

-

$

24,743,809 $

24,743,809

$

Changes in Endowment Net Assets for the Fiscal Year Ended June 30, 2025 Without Donor With Donor Restrictions Restrictions Total Endowment net assets - Beginning of year Investment return - Net appreciation (realized and unrealized) Contributions Appropriation of endowment assets for expenditure

$

Endowment net assets - End of year

$

16

-

$

-

$

16,751,866 $

16,751,866

2,440,506 6,188,707 (637,270)

2,440,506 6,188,707 (637,270)

24,743,809 $

24,743,809

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 8 - Donor-restricted Endowments (Continued) Endowment Net Asset Composition by Type of Fund as of June 30, 2024 Without Donor With Donor Restrictions Restrictions Total Donor-restricted endowment funds: Original donor-restricted gift amount and amounts required to be maintained in perpetuity by the donor $ Accumulated investment gains

-

$

13,929,542 $ 2,822,324

13,929,542 2,822,324

Total donor-restricted endowment funds

-

$

16,751,866 $

16,751,866

$

Changes in Endowment Net Assets for the Fiscal Year Ended June 30, 2024 Without Donor With Donor Restrictions Restrictions Total Endowment net assets - Beginning of year Investment return - Net appreciation (realized and unrealized) Contributions Appropriation of endowment assets for expenditure

$

Endowment net assets - End of year

$

-

$

-

$

14,329,973 $

14,329,973

2,335,572 600,000 (513,679)

2,335,572 600,000 (513,679)

16,751,866 $

16,751,866

Underwater Endowment Funds From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or SPMIFA requires the Organization to retain as a fund of perpetual duration. Deficiencies of this nature existed in one donor-restricted endowment fund at June 30, 2024, which had an original gift value of $1,014,180, a current fair value of $1,012,117, and a deficiency of $2,063. These deficiencies resulted from unfavorable market fluctuations that occurred shortly after the investment of new contributions for donor-restricted endowment funds and continued appropriation for certain programs that was deemed prudent by the board of directors. There were no such deficiencies in any donor-restricted endowment funds as of June 30, 2025.

Return Objectives and Risk Parameters The Organization has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the Organization must hold in perpetuity or for a donor-specified period, as well as board-designated funds. Under this policy, as approved by the board of directors, the endowment assets are invested in a manner that is intended to achieve a return of 5 percent, net of inflation and investment expenses. The secondary investment objective is to earn a total return, net of expenses, at least equal to the portfolio's composite benchmark, as defined in its investment policy statement. Actual returns in any given year may vary from this amount.

Strategies Employed for Achieving Objectives To satisfy its long-term rate-of-return objectives, the Organization relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Organization targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints.

17

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 8 - Donor-restricted Endowments (Continued) Spending Policy and How the Investment Objectives Relate to Spending Policy The Organization established an investment policy that allows for the appropriation of 4 percent of the average market value of the endowment over the preceding 12 quarters. Appropriated earnings are to be used for the Organization's operations and expenses in accordance with donor restrictions, if any. For the years ended June 30, 2025 and 2024, appropriations amounted to $637,270 and $513,679, respectively.

Note 9 - Collective Bargaining Agreements Approximately 45 percent of the Organization’s workforce is covered by various collective bargaining agreements (CBA); the American Guild of Musical Artists; and the International Alliance of Theatrical Stage Employees, Moving Picture Technicians, Artists, and Allied Crafts, or Makeup Artists or Hairstylists of the United States, its Territories and Canada. The CBA covering the Organization's employees who were organized under IATSE Local 769 expires on June 30, 2029. The CBA covering the Organization's employees who were organized under Theatrical Stage Employees Union Local No. 2 expires on June 30, 2029. The CBA covering the Organization's employees who were organized under Motion Picture Studio Mechanics Local Number 476 expires on August 31, 2029. The CBA covering the Organization's employees who were organized under the American Guild of Musical Artists expires on June 30, 2027.

Note 10 - Lines of Credit Under a line of credit agreement with a bank, the Organization has available borrowings of approximately $1,500,000. Interest is at the greater of 2.75 percent or the prime rate less 0.50 percent. The line of credit matures on December 22, 2025, and the Organization intends to negotiate a renewal. The line of credit is collateralized by general assets and pledges receivable. The Organization had no outstanding balance on the line of credit at June 30, 2025 and 2024. No borrowings were made on the line of credit during the years ended June 30, 2025 and 2024.

Under the agreement with the bank, the Organization is subject to certain nonfinancial covenants, including the requirement to file audited financial statements within 120 days of fiscal year end with the bank.

The Organization entered into a separate line of credit agreement with a bank on April 30, 2024 for the purpose of financing the purchase of a warehouse. The Organization has available borrowings of approximately $3,700,000. Interest is at the adjusted SOFR plus the applicable margin of 1.6 percent, an effective rate of 6.02 percent and 8.5 percent at June 30, 2025 and 2024, respectively. The line of credit matures on April 30, 2026. The line of credit is collateralized by the Organization's assets. The Organization had an outstanding balance on the line of credit of $3,331,925 and $2,400,000 at June 30, 2025 and 2024, respectively.

Under the agreement with the bank, the Organization is subject to certain financial and nonfinancial covenants, including the requirement to meet certain financial ratios and to file audited financial statements within 120 days of fiscal year end with the bank.

18

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 11 - Retirement Plans The Organization administers The Joffrey Ballet Tax Deferred Annuity Plan, a 403(b) defined contribution benefit plan. The plan allows for discretionary matching contributions in an amount equal to the lesser of the participant's actual contributions or 3 percent of the participant's salary. Contributions to the plan totaled $142,785 and $135,944 for the years ended June 30, 2025 and 2024, respectively. The Organization administers a 457(f) where, at the discretion of the board of directors, certain executives receive deferred contributions. The Organization made contributions of $320,000 and $260,000 to the plan in the years ended June 30, 2025 and 2024, respectively. The Organization made contributions of $157,468 and $148,062 for the years ended June 30, 2025 and 2024, respectively, to the American Guild of Musical Artists (AGMA) Retirement Fund for employees who are covered by the AGMA CBA. The contribution is calculated based on the AGMA CBA.

Note 12 - Multiemployer Pension Plans The Organization is a participant in multiemployer defined benefit pension plans under the terms of collective bargaining agreements covering most of its union employees established under the terms of the collective bargaining agreements covering the Organization's stagehands, wardrobe, and wig labor.

Contribution rates are determined annually and assessed based on employee payrolls for individuals covered under the plans. Benefits under these plans are generally based on a flat rate for all employees under the agreement.

The financial risks of participating in multiemployer plans are different from single-employer defined benefit pension plans in the following respects:  Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.  If a participating employer discontinues contributions to a plan, the unfunded obligations of the plan may be borne by the remaining participating employers.  If a participating employer chooses to stop participating in a plan, a withdrawal liability may be created based on the unfunded vested benefits for all employees in the plan.

Information regarding significant multiemployer pension benefit plans in which the Organization participates and total contributions made to all multiemployer plans is shown in the following table: Pension Protection Act Certified Zone Status

Name of Plan

Plan Employer ID Number

Studio Mechanics Local 476 IATSE Retirement Plan 36-6552588 Stagehands Local Two Retirement Plan 36-6099766 IATSE National Pension Fund 13-1849172

Plan Number

2025

2024

Contributions Made by Company Expiration Date of Collective Bargaining Agreement

2025

2024

001

Green Zone Green Zone

8/31/2029 $

2,789 $

2,018

001 001

Green Zone Green Zone Green Zone Green Zone

6/30/2029 6/30/2029

81,188 21,071

64,349 17,987

105,048 $

84,354

Total contributions made

$

Based on information as of December 31, 2024, the year end of the plans, organization contributions to any of the plans listed above do not represent more than 5 percent of total contributions received by each plan.

19

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 13 - Deferred Revenue The Organization recorded deferred revenue from the following sources as of June 30:

Ticket revenue Tuition and other revenue Total

2025

2024

$

1,743,689 $ 1,305,095

1,500,554 1,062,874

$

3,048,784 $

2,563,428

Note 14 - Liquidity and Availability of Resources The following reflects the Organization's financial assets as of June 30, 2025 and 2024, reduced by amounts not available for general use because of board-designated or donor-imposed restrictions within one year of the statement of financial position date:

Cash and cash equivalents Investments Contributions receivable Other receivables Endowment cash and cash equivalents Endowment investments Endowment pledges receivable

$

Financial assets Less amounts not available to be used within one year: Endowment cash and cash equivalents Endowment investments Endowment pledges receivable Board-designated net assets Operating pledges not expected to be received within one year Total Financial assets available to meet general expenditures within one year

$

2025

2024

3,540,199 $ 7,145,635 4,222,009 241,063 330,403 24,413,406 2,013,237

3,978,984 6,541,772 3,231,853 260,805 88,817 16,663,049 -

41,905,952

30,765,280

330,403 24,413,406 2,013,237 10,609,187 2,052,000

88,817 16,663,049 10,154,108 985,000

39,418,233

27,890,974

1,462,719 $

2,874,306

The pledges receivable are subject to implied time restrictions, but the amount reported above is expected to be collected within one year.

The Organization's endowment funds consist of donor-restricted endowments. Income from donorrestricted endowments is restricted for specific purposes and, therefore, is not available for general expenditure.

The Organization regularly monitors its liquidity in order to meet financial obligations. As part of its boarddesignated net assets, in 2023, the Organization approved an operating reserve fund policy that requires the Organization to maintain an equivalent of three months of average actual cash operating costs. The amount of the operating reserve will be calculated each year after the annual budget is approved. The available line of credit may be counted as a part of the calculated target reserve but may not exceed 50 percent of the reserve amount. Any spending from this account that brings the balance below the approved amount must be eventually refunded. As of June 30, 2025 and 2024, the balance in this account was $5,691,304 and $4,451,390, respectively. The remaining board-designated net assets could be released by action of the board in order to cover any approved budgeted uses. In addition, the Organization has two separate commercial lines of credit with available credit of $1,500,000 and approximately $400,000.

20

The Joffrey Ballet

Notes to Financial Statements June 30, 2025 and 2024

Note 15 - Related Party Transactions Contributions to the Organization from board members and staff, amounting to $7,263,208 and $1,670,859 for the years ended June 30, 2025 and 2024, respectively, are included in contributions revenue on the statement of activities. Pledges receivable from board members of $3,995,961 and $998,055 at June 30, 2025 and 2024, respectively, are included in pledges receivable on the statement of financial position.

Note 16 - Contributed Nonfinancial Assets Contributed nonfinancial assets recognized within the statement of activities consisted of the following for the years ended June 30: 2025 Professional services Legal services Event space and catering Lodging Physical therapy Total

2024

$

67,625 $ 371,124 155,671 8,572 202,026

50,300 519,899 128,930 -

$

805,018 $

699,129

Contributed nonfinancial assets did not have donor-imposed restrictions.

Contributed nonfinancial assets are valued and reported at their estimated fair value in the financial statements. Contributed nonfinancial assets are estimated based on stated prices for similar items or services. None of the contributed nonfinancial assets were sold or monetized.

21