Nature of the Organization New Hope C.O.R.P.S., Inc., was founded on April 8, 1993. This organization is incorporated with the State of Florida as a nonprofit organization. The purpose of the Organization is to operate residential treatment centers for the purpose of offering the physical, psychological, spiritual, educational, vocational, and social rehabilitation and regeneration of those persons in the surrounding community who are victims of substance abuse. The Organization offers the following programs: a) Residential Substance Abuse Treatment Program offers a holistic approach to treatment that includes personalized treatment planning, mental health services, targeted case management, psychosocial rehabilitation, evidence-based clinical interventions, and twenty-four-hour supervision. b) Substance Abuse Outpatient Treatment Program provides substance abuse education, DUI evaluation, education, and court approved treatment. Other services include treatment for co-occurring mental health disorders, family counseling and education, and relapse prevention education and support. c) HIV/Aids Counseling and Testing Program provided free testing and counseling. The program offers HIV counseling, prevention, and outreach services to the affected community. d) After Care Program provides transitional to permanent residential housing opportunities in an alcohol and drug free environment. Basis of Presentation The accompanying financial statements have been prepared on the accrual Basis of accounting in accordance with U.S. generally accepted accounting principles (GAAP). Net assets, support and revenues, and expenses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Without Donor Restrictions – Net Assets available for use in general operations and not subject to donor restrictions. Grants and contributions gifted for recurring programs are generally not considered “restricted” under GAAP, though for internal reporting, the Organization tracks such grants and contributions to verify the disbursement matches the intent. Assets restricted solely through the actions of the Board are reported as net assets without donor restrictions, board designated. With Donor Restrictions – Net assets subject to donor-imposed stipulations that are more restrictive than the Organization’s mission and purpose. 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. Donor-imposed restrictions are released when the restriction expires, that is when the stipulated purpose for which the resource was restricted has been fulfilled, or both. Other donor-imposed restrictions are perpetual in nature, when the donor stipulates those resources be maintained in perpetuity. Contributions - Contributions, including unconditional promises to give, are recognized when received. All contributions are reported as increases in net assets without donor restrictions unless use of the contributed assets is specifically restricted by the donor. Amounts received that are restricted by the donor to use in future periods or for specific purposes are reported as increases in net assets with donor restrictions. Conditional promises, such as matching grants, are not recognized until they become unconditional, that is, until all conditions on which they depend are substantially met. Donated Materials and Services - Donated materials, if significant, are recorded as contributions at their estimated fair values at date of receipt. Donated services are recognized when there is an objective basis to measure the value of such services and such services create or enhance a non-financial asset or the service requires specialized skills that would be purchased if not provided by donation. Use of Estimates The preparation of financial statements is in accordance with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions. Such estimates, which are based on prior operating history and industry standards, affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Accordingly, actual results could differ from those estimates. Classification of Transactions All revenues and net gains are reported as increases In net assets without donor restrictions in the statement of activities unless the donor specified the use of the related resources for a particular purpose or in a future period. All expenses and net losses are reported as decreases in net assets without donor restrictions. Property, Plant & Equipment, Net Property and equipment are stated at historical cost, less accumulated depreciation. Donated property and equipment are recorded at their estimated fair value at the date of donation. Depreciation of property and equipment is provided using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Assets Useful Life Building and Improvements 5 - 40 Years Furniture and Equipment 5 - 10 Years Vehicles 5 - 7 Years Cost of major additions and improvements that extend the life of the asset are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. In the case of disposals, the assets and related reserves are removed from the accounts and the net amount, less proceeds from disposal, is charged or generally credited to income. The Organization reviews assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Organization compares the carrying amount of the asset to net future undiscounted cash flows that an asset is expected to generate. The impairment is recognized to the extent that the carrying value is greater than future cash flows. Income Taxes The Organization is exempt from federal income taxes under Section 501(c)3 of the Internal Revenue Code and is not a private foundation. Accordingly, no provision for income taxes is provided. Accordingly, no provision for income taxes is required for the Organization during the year ended September 30, 2025. Additionally, Accounting Standards Codification (ASC) Topic 740 provides guidance on measurement, de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. In accordance with the disclosure requirements, the Organization’s policy on income statement classification of interest and penalties related to income tax obligations is to include such items as part of total interest expense and other expense, respectively. On September 30, 2025, the Organization did not have any uncertain tax positions and thus has not recognized any interest or penalties in these financial statements. Cash and Cash Equivalents The Organization maintains its cash accounts in several financial institutions. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $ 250,000 for each institution. The Organization has cash balances on deposit with a certain financial institution that may exceed the balance insured by the FDIC. The Organization believes it is not exposed to any significant credit risk since it has not experienced any losses in such accounts previously and the financial institutions are sound institutions. Grants Receivables Grants receivable are primarily unsecured non-Interest-bearing amounts due from grantors on cost reimbursement or performance grants. Management believes that all outstanding accounts receivable are collectible in full, therefore no allowance for uncollectible receivables has been provided. Fair Value of Financial Instruments Assets and liabilities that are reported at fair value on a recurring basis are categorized into a fair value hierarchy. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three levels of the fair value hierarchy are as follows: Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Organization has the ability to access. Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly. Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements. Revenue Recognition Grant revenue is recognized when the qualifying costs are incurred for cost-reimbursement grants or contracts or when a unit of service is provided for performance grants and are reviewed by the grantor agency. These reviews could result in the disallowance of expenditures under the terms of the grant or reductions of future grant funds. Based on prior experience, the Organization's management believes that costs ultimately disallowed, if any, would not materially affect the financial position of the Organization. In May 2014, The FASB issued ASI 2014-9, Revenue from Contracts with Customers (Topic 606). This guidance outlines a single, comprehensive model for accounting for revenue from contracts with customers. The program revenue and grants received are generated substantially from completed services. Those services predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer with respect to the program fees and grants received. The timing of revenue recognition was not affected by the new standard. The Organization identifies all performance obligations in connection with the services and only recognizes revenue once the performance obligations have been met and does not believe that it is required to provide additional services or obligations to the client. For grants received, the transaction price is evidenced in the award amount and evidenced with a budget for expenditures. Since the grants are awarded on a cost reimbursement basis, and there is a budget established by the grantor agency, costs are reimbursed in accordance with the expenditures as performance obligations are satisfied. For program fees, a schedule of fees is presented in the organization's website and brochures. This transaction price is allocated based on the applicable program. Revenue is recognized at a specific point in time once the performance obligation relating to the program is met. Typically, billings occur monthly after the revenue is recognized. Management has analyzed the provisions of the FASB's ASC Topic 606, Revenue from contract with Customers, and have concluded that no changes are necessary to conform with the new standard. Grants are recorded as revenue once the appropriate performance obligations have been met and requests reimbursement. Program fees are recognized monthly after the performance obligations have been satisfied with respect to the applicable service for that month. Functional allocation of Expenses The costs of providing the various programs and activities have been summarized on a functional basis in the Statement of Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefitted. Allowance for Expected Credit Losses The allowance for credit losses is the Organization’s best estimate of the amount of probable credit losses in the Organization’s existing program fees and other receivables and is based upon historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with specific accounts. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Provisions for allowances for credit losses are recorded in general and administrative expense. Estimating credit losses based on risk characteristics requires significant judgment by the Organization. Significant judgments include but are not limited to assessing current economic conditions and the extent to which they would be relevant to the existing characteristics of the Organization’s financial assets, the estimated life of financial assets and the level of reliance on historical experience in light of economic conditions. The Organization separates program fees receivables into risk pools based on their aging and reviews and updates, when necessary, its historical risk characteristics that are meaningful to estimating credit losses, any new risk characteristics that arise in the natural course of business and the estimated life of its financial assets. At September 30, 2025, the Organization evaluated the impact of current and future economic conditions on its historical loss rates for each risk pool and in management’s judgement concluded that any impact to loss rates would be immaterial. Therefore, no loss rates of any risk pool were adjusted for current or future economic conditions. Reclassifications Certain reclassifications have been made to the prior year balances to conform to the current year presentation. Net assets that were previously reported as restricted net assets have been reclassified in full to unrestricted net assets, as management has confirmed there are no donor-imposed restrictions on these amounts. In addition, amounts that were previously presented as a combined “cash” balance have been reclassified and are now presented separately as cash and investments. These reclassifications have no effect on total assets, total liabilities, or total net assets and are made solely for presentation purposes.
The Organization derived majority of its revenue from South Florida Behavioral Health Network and Miami – Dade County. The Organization maintains cash balances at several financial institutions located in South Miami-Dade County. The accounts at the institution are insured by the Federal Deposit Insurance Corporation up to $ 250,000. At September 30, 2025, cash balances of the Organization exceeded insured limits by $ 2,538,313. Management believes it is not exposed to any significant credit risk since it has not experienced any losses in such accounts previously and the financial institution is sound. Most of the organizations contributions and grants are received from corporations, foundations, and individuals located in the South Florida area and from agencies of the state of Florida and Miami-Dade County. As such, the Organization’s ability to generate resources via contributions and grants is dependent upon the economic health of that area and of the state of Florida.
Grants receivable are primarily unsecured non-interest-bearing amounts due from grantors on cost reimbursement or performance grants. Management believes that all outstanding accounts receivable are collectible in full, therefore no allowance for uncollectible receivables has been provided. The Organization’s receivable amount as of September 30, 2025 is as follows: Description Amount City of South Miami $ 2,410 Homeless Trust 764,844 Miami-Dade County 185,500 Department of Veteran Affairs 50,371 Miami Beach After-Hours/PD Res. 78,024 Thriving Mind South Florida 335,032 Others 50,381 TOTAL $ 1,466,562
As of September 30, 2025, prepaid expenses amount to $156,791 and consist of prepaid insurance premiums for the Organization’s commercial insurance policies, including Commercial Auto, General Liability, Property, and Workers Compensation. These policies cover the 12-month period from June 1, 2025 to June 1, 2026. The prepaid amounts will be amortized to expense on a straight-line basis over the remaining policy term.
Fixed Assets valued in excess of $ 1,000 are capitalized. Fixed Assets are valued at cost when purchased or estimated fair value at date of donation and are depreciated using the straight-line method over their estimated useful lives of five to forty years. In the absence of donor restrictions in the use of donated fixed assets, the Organization records such donations as revenue without donor restrictions in the period received. As of September 30, 2025, the Organization has following Assets: As of September 30, 2025 Amount Building and Improvements $ 1,460,405 Land 237,893 Furniture And Equipment 189,908 Vehicles 112,742 Total 2,000,948 Less: Accumulated depreciation (627,312) Property, Plant and Equipment, Net $ 1,373,636 Depreciation Expense for the year ended September 30, 2025 was $ 75,846.
The following represents organization’s investments measured at fair value on September 30, 2025 As of September 30, 2025 Investment Fund $ 541,256 Money Market Fund 3,793,097 Total $ 4,334,353 The following summarizes the investment return as shown in the Statements of Activities for the year ended September 30, 2025 Year Ended September 30, 2025 Interest and Dividend income $ 165,253 Net unrealized gains 44,099 Total Investment income, Net $ 209,352
The FASB Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, provides the 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 to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under the FASB ASC are described as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Organization has the ability to access. Level 2: Inputs to the valuation methodology include: - quoted prices for similar assets or liabilities in active markets. - quoted prices for identical or similar assets or liabilities in inactive markets. - inputs other than quoted prices that are observable for the asset or liability. - inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset 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. The following table represents organization’s financial instruments measured at fair value on a recurring basis at September 30, 2025 for each of the fair value hierarchy levels: Fair Value Measurements Level 1 Level 2 Level 3 Total Investment Fund $ 541,256 - - $ 541,256 Money Market Fund 3,793,097 - - 3,793,097 Total $ 4,334,353 - - $ 4,334,353
Accounts payable and accrued expenses consist of amounts due to vendors for goods received and services rendered, and expenses incurred but not yet paid, in the ordinary course of operations. Such amounts are generally payable within one year and are recorded at the estimated settlement amounts, which approximate fair value due to their short-term nature. As of September 30, 2025, accounts payable and accrued expenses amount to $178,716.
Under FASB ASC Topic 842, Leases, lessees that are not public business entities are permitted to use a practical expedient that allows them to make an accounting policy election to use a risk-free rate as the discount rate for all leases. This practical expedient is applied to the class of underlying leased assets which are not owned including real estate, rental equipment and vehicles given their physical nature and similar characteristics of these assets. The Organization's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Variable lease payments are payments that cannot be forecasted and based on specific milestones unrelated to the fixed costs associated with the lease. The Organization has elected the hindsight practical expedient to determine the lease term for existing contracts as of the adoption date. Short-term Leases The Organization also elected the short-term leases of practical expedients permitted under the transition guidance within the new standard, which allowed the Organization to elect not to record “short-term” leases on the balance sheet. These practical expedients are applied to the class of underlying leased assets including real estate, rental equipment and vehicles given their physical nature and similar characteristics of these assets. As per FASB ASC 842, a short-term lease is a lease that, at the commencement date, has a ‘lease term’ of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Although short-term leases are in the scope of Topic 842, a simplified form of accounting is permitted. A lessee can elect, by class of underlying asset, not to apply the recognition requirements of Topic 842 and instead to recognize the lease payments as lease cost on a straight-line basis over the lease term. The organization believes that the short-term lease exemption is appropriate for its month-to-month leases because the leases have a short term and they do not have any significant intention to exercise any renewal options. The Organization has applied this practical expedient on short-term leases. Rent expense for aftercare facilities and other facilities, which is included in rent expense in the statement of functional expenses, was $ 656,991 for the year ended September 30, 2025. The rent agreements are month-to-month. The Organization has elected to disclose these lease payments on the statement of functional expenses. Long-term Leases (Operating Lease) The Organization leases office and administrative space under three long-term agreements accounted for as operating leases in accordance with ASC 842, Leases. Right-of-use (ROU) assets and corresponding lease liabilities have been recognized on the balance sheet for each agreement. The leases do not provide an implicit interest rate. As such, the Organization calculates the lease liability at lease commencement or remeasurement date as the present value of unpaid lease payments using the risk-free rate. The risk-free rate is the theoretical rate of return that would be received on an investment with zero risk. US Treasury rates are commonly used as risk-free rates. Property lease During the current fiscal year, two of the three agreements reached their natural expiration and have been terminated: 1. The lease agreement dated July 11, 2022, with CCN Holding of Hialeah LLC for the premises at 10 NE 18th Street, Homestead, FL 33030 (three-year term commencing August 1, 2022 and ending July 31, 2025, base rent of $ 6,123 per month commencing September 1, 2022). 2. The Memorandum of Understanding dated March 6, 2024, with Gratitude Foundation, Inc. for the premises at 6600 SW 62nd Avenue, South Miami, FL 33143 (providing use of office and meeting space through June 30, 2025 at $7,500 per month through June 30, 2024, reducing to $ 5,000 per month thereafter). 3. The remaining outstanding lease is with Sarria Holdings IV Inc. for the premises at 156 NE 8th Street, Homestead, FL (three-year term commencing March 1, 2024, with gross rent of $3,100 per month in the first lease year, $3,255 per month in the second lease year, and $3,418 per month in the third lease year, sales-tax exempt). Lease expense is recognized on a straight-line basis over the respective lease terms. Vehicle Lease The organization also maintains several agreements for the use of vehicles to facilitate its business operations. 1. A vehicle lease commenced on December 1, 2023, with a monthly payment of $426 and a maturity date of November 30, 2026. The vehicle under lease is a new 2024 Honda HR-V, with a VIN of 7051. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 20,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $14,540. 2. A vehicle lease commenced on December 1, 2023, with a monthly payment of $426 and a maturity date of November 30, 2026. The vehicle under lease is a new 2024 Honda HR-V, with a VIN of 9556. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 20,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $14,546. 3. A vehicle lease commenced on October 19, 2022, with a monthly payment of $444 and a maturity date of October 18, 2025. The vehicle under lease is a 2023 Honda HR-V, with a VIN of 9555. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 15,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $15,933. 4. A vehicle lease commenced on May 6, 2023, with a monthly payment of $348 and a maturity date of May 5, 2026. The vehicle under lease is a 2023 Toyota Corolla Cross, with a VIN of 2605. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 15,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $16,055. 5. A vehicle lease commenced on November 29, 2024, with a monthly payment of $456 and a maturity date of November 28, 2027. The vehicle under lease is a 2024 Toyota Corolla Cross, with a VIN of 6273. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 12,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $16,064. 6. A vehicle lease commenced on March 26, 2025, with a monthly payment of $331 and a maturity date of March 25, 2028. The vehicle under lease is a 2025 Toyota Corolla Cross, with a VIN of 0665. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 15,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $15,935. 7. A vehicle lease commenced on March 26, 2025, with a monthly payment of $378 and a maturity date of March 25, 2028. The vehicle under lease is a 2025 Toyota Corolla Cross, with a VIN of 2006. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 18,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $14,216. 8. A vehicle lease commenced on March 27, 2025, with a monthly payment of $465 and a maturity date of March 26, 2028. The vehicle under lease is a 2025 Toyota Corolla Cross, with a VIN of 0531. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 18,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $15,404. 9. A vehicle lease commenced on March 27, 2025, with a monthly payment of $453 and a maturity date of March 26, 2028. The vehicle under lease is a 2025 Toyota Corolla Cross, with a VIN of 1061. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 18,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $14,999. 10. A vehicle lease commenced on April 4, 2025, with a monthly payment of $370 and a maturity date of April 3, 2028. The vehicle under lease is a 2025 Toyota Corolla Cross, with a VIN of 1550. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 18,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $15,404. 11. A vehicle lease commenced on June 16, 2025, with a monthly payment of $305 and a maturity date of June 15, 2028. The vehicle under lease is a 2025 Toyota Corolla Cross, with a VIN of 9484. The lease is a closed-end vehicle lease with no further obligations for the lessee at the lease’s conclusion, unless the vehicle is damaged beyond acceptable wear or excessive mileage exceeds the agreed limit of 18,000 miles per year. The lessee has the option to purchase the vehicle at the end of the lease term for $15,462. As of September 30, 2025, the ROU asset and lease liability were $166,387 and $145,111, respectively. As of September 30, 2025, the weighted average remaining lease term for the lease is 1.89 years, and the weighted average discount rate was 4.12%. Lease expense is recognized on a straight-line basis over the respective lease terms. The approximate minimum future annual rental commitments under operating leases as of September 30, are as follows: Year Ending September 30, Amount 2026 $ 85,944 2027 51,884 2028 13,248 Total Lease Payments 151,076 Less; Imputed Interest 5,965 Present Value of Lease Obligations $ 145,111
As of September 30, 2025, the Organization has recorded an accrued FLSA settlement liability of $123,850 related to the resolution of a lawsuit filed by two former employees. The claims asserted alleged unpaid overtime compensation under the Fair Labor Standards Act (FLSA). The accrued liability comprises the following: •$35,000 in gross wages (subject to applicable tax withholdings and deductions) •$35,000 in liquidated damages •$53,850 in attorneys’ fees and costs The Organization denies any liability and entered into the settlement solely to avoid the expense, inconvenience, and uncertainty of continued litigation. The settlement does not constitute an admission of wrongdoing or liability by the Organization. The full amount was paid subsequent to the balance sheet date (see Note 12 – Subsequent Events).
One of the retirement benefits that the Organization provides to the employees is a 403 (b) Thrift Plan. It is a Defined Contribution Plan and is administered by a financial institution. Any employee who is 21 or older is eligible to participate in the plan if the employee has completed one year of service with the Organization. Employees can contribute any percentage of their salary up to the maximum permitted by the law. 22 employees are currently enrolled in the plan. During the fiscal year ended September 30, 2025, the Employer contribution was $ 59,750.
Subsequent to September 30, 2025, the Organization finalized the litigation matter described in Note 10 – Accrued Litigation Payable. The Organization entered into a Settlement Agreement and Mutual General Release on November 20, 2025, to resolve the litigation. Under the terms of the agreement, the Organization agreed to pay a total settlement amount of $123,850. The settlement required payment to be made via wire transfer no later than November 26, 2025, which was completed in accordance with the agreement. Following execution of the agreement and receipt of payment, a Joint Stipulation of Dismissal with Prejudice was filed, and the matter was fully resolved. The settlement amount included payments for alleged unpaid wages, liquidated damages, and attorneys’ fees and costs, as outlined in the agreement. Management evaluated subsequent events through April 30, 2026, the date the financial statements were available to be issued, and determined that no additional events occurred that require recognition or disclosure in the financial statements.
The Organization’s main source of revenue is contributions and grants. These sources of revenue are what will be used to fund the Organization operations; the remainder of the revenue is from contributions from various sources. The Organization considers contributions without donor restrictions, program income and other miscellaneous income for use in programs that are ongoing, major, and central to its annual operations as available to meet cash needs for general expenditures. General expenditures include general and administrative expenses, program costs, and other administrative costs which are necessary to sustain operations and is expected to be paid in the subsequent year. Annual operations are defined as total expense related to both program services and supporting services activities. The Organization manages its cash available to meet general expenditures through the following three guiding principles: 1. Operating within a prudent range of financial soundness and stability 2. Maintaining adequate liquid assets 3. Maintaining sufficient reserves to provide reasonable assurance that long-term agreements or other commitments and obligations will continue to be met, thereby ensuring the sustainability of the Organization. The Assets which are listed on the balance sheet as current assets (Cash, Grants Receivable and Other Current Assets) are all assets available for general expenditure. Although, complete receivables may not be fully collectible (expected to collect 100%), the net realizable value of Accounts Receivable is available for general expenditures. Liquidity Management The Organization maintains a policy of structuring financial assets to be available as general expenditures, liabilities, and other obligations become due.
During the year ended September 30, 2025, management discovered misstatements which it has corrected and accounted for as prior period adjustments. These adjustments relate to Operating Lease Asset (ROU), Operating Lease Liability, Security Deposit, Grants Receivable and Property, Plant & Equipment. The table below reflects the net effect of the prior period adjustments on the prior year financial statements. As originally reported September 30,2024 Prior Period Adjustments As restated September 30, 2024 Operating Lease Asset (ROU) $ - $238,149 $238,149 Operating Lease Liability - (227,571) (227,571) Security Deposit - 30,149 30,149 Grants Receivable 1,434,883 (30,821) 1,404,062 Property, Plant & Equipment, Net 1,572,852 (188,359) 1,384,493 Net Assets ($8,645,614) ($178,453) ($8,467,161)