Consolidated Financial Statements

and Report of Independent Certified

Public Accountants

World Bicycle Relief, NFP and its Subsidiaries

December 31, 2022 and 2021

Contents Page

Report of Independent Certified Public Accountants 3

Consolidated Financial Statements

Consolidated statements of financial position 6

Consolidated statements of activities and changes in net

assets 7

Consolidated statements of functional expenses 9

Consolidated statements of cash flows 11

Notes to consolidated financial statements 12

Supplemental Information

Consolidating statements of financial position 26

Consolidating statements of activities and changes in net

assets 30
GRANT THORNTON LLP
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Grant Thornton Tower
171 N. Clark St., Suite
200
Chicago, IL 60601-3370

D +1 312 856 0200

F +1 312 602 8099

Board of Directors
World Bicycle Relief, NFP and its Subsidiaries

Opinion
We have audited the consolidated financial statements of World Bicycle
Relief, NFP and its Subsidiaries, which comprise the consolidated
statements of financial position as of December 31, 2022 and 2021, and
the related consolidated statements of activities and changes in net assets,
functional expenses and cash flows for the years then ended, and the
related notes to the financial statements.

In our opinion, the accompanying consolidated financial statements

present fairly, in all material respects, the financial position of World
Bicycle Relief, NFP and its Subsidiaries as of December 31, 2022 and 2021,
and the changes in their net assets and their cash flows for the years then
ended in accordance with accounting principles generally accepted in the
United States of America.

We did not audit the financial statements of Buffalo Bicycles Zambia, a

wholly-owned subsidiary, which statements reflect total assets constituting
17% and 12% of the consolidated total assets as of December 31, 2022
and 2021, respectively, and total revenue and support constituting 18%
and 13%, respectively, of consolidated total revenue and support for the
years then ended. Those statements were audited by other auditors, whose
report has been furnished to us, and our opinion, insofar as it relates to the
amounts included for Buffalo Bicycles Zambia, is based solely on the report
of the other auditors.

Basis for opinion

We conducted our audits of the consolidated financial statements in
accordance with auditing standards generally accepted in the United States
of America (US 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 World Bicycle Relief, NFP and its Subsidiaries and to meet
our other 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 consolidated 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 consolidated financial statements
that are free from material misstatement, whether due to fraud or error.
[Link] Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd (GTIL). GTIL and each of its
member firms are separate legal entities and are not a worldwide partnership.
In preparing the consolidated financial statements, management is
required to evaluate whether there are conditions or events, considered in
the aggregate, that raise substantial doubt about the World Bicycle Relief,
NFP and its Subsidiaries’ ability to continue as a going concern for one
year after the date the financial statements are available to be issued.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the
consolidated 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 US 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 consolidated financial statements.

In performing an audit in accordance with US GAAS, we:

 Exercise professional judgment and maintain professional skepticism

throughout the audit.
 Identify and assess the risks of material misstatement of the
consolidated 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 World Bicycle Relief, NFP and its Subsidiaries’ 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
consolidated financial statements.
 Conclude whether, in our judgment, there are conditions or events,
considered in the aggregate, that raise substantial doubt about the
World Bicycle Relief, NFP and its Subsidiaries’ 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.

Supplementary information
Our audits were conducted for the purpose of forming an opinion on the
consolidated financial statements as a whole. The consolidating
information is presented for purposes of additional analysis, rather than to
present the financial position, results of activities and changes in net
assets, and cash flows of the individual entities, and is not a required part
of the consolidated financial statements. Such supplementary
information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to
prepare the consolidated financial statements. The information has been
subjected to the auditing procedures applied in the audits of the
consolidated financial statements and certain additional procedures. These
additional procedures included comparing and reconciling the information
directly to the underlying accounting and other records used to prepare
the consolidated financial statements or to the consolidated financial
statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of
America. In our opinion, the consolidating information is fairly stated, in all
material respects, in relation to the consolidated financial statements as a
whole.

Chicago,
Illinois June
28, 2023
 World Bicycle Relief, NFP and its
Subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

December 31,

2022 2021
ASSETS

Current assets
Cash and cash equivalents $ $

4,420,590 7,452,523
Contributions receivable 1,999,15 2,308,20
8 7
Trade receivables, net 884,802 1,829,00
4
Inventory 2,809,40 2,400,26
5 9
Prepayments 1,797,11 1,282,13
6 4
Other assets 495,172 7,850

Total current assets 12,406,24 15,279,98

3 7

Non-current assets
Contributions receivable - 307,179
Deferred tax asset 463,478 481,692
Fixed assets, net 537,196 855,143
Operating lease right-of-use assets 210,366 -

Total assets $ 13,617,283 $ 16,924,001

LIABILITIES AND NET ASSETS

Current liabilities
Accounts payable $ 1,375,626 $ 1,388,644
Accrued expenses 970,972 902,448
Deferred revenue 176,606 117,749
Operating lease liabilities 168,814 -

Total current liabilities 2,692,018 2,408,841

Non-current liabilities
Operating lease liabilities 44,061 -

Total non-current liabilities 44,061 -

Total liabilities 2,736,079 2,408,841

N et assets
Without donor restrictions 9,988,851
13,493,702
With donor restrictions 892,353 1,021,458

The accompanying notes are an integral part of these consolidated financial

Total net assets 10,881,204 14,515,160
statements.
6
Total liabilities and net assets $ $
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

Year ended December 31, 2022

Without Donor With Donor

Restrictions Restrictions Total
R evenue and support
Contributions and grants $ 15,371,607 $ 1,445,337 $ 16,816,944
In-kind contributions 1,285,217 1,285,217
Bicycle social enterprise program 8,680,039 - 8,680,039
Other income 218,429 - 218,429
Net assets released from restrictions 1,574,442 -
(1,574,442)
Total revenue and support 27,129,734 (129,105) 27,000,629

Expenses
Program services
Social enterprise 17,593,975 - 17,593,975
Mobilized communities 4,366,201 - 4,366,201

Total program services 21,960,176 - 21,960,176

Supporting services
Management and administrative 2,322,614 - 2,322,614
Fundraising 4,299,393 - 4,299,393

Total supporting services 6,622,007 - 6,622,007

Total expenses before tax expense 28,582,183 - 28,582,183

Tax expense 235,199 - 235,199

Total expenses - 28,817,382

28,817,382
Decrease in net assets from operating activities (1,687,648) (129,10 (1,816,753
5) )

Non-operating changes in net assets

Investment return 6,572 - 6,572
Foreign exchange loss -
(1,823,775) (1,823,775)
DECREASE IN NET ASSETS (3,504,851) (129,105) (3,633,956)

Net assets, beginning of year 13,493,702 1,021,458 14,515,160

The accompanying notes are an integral part of this consolidated financial

statement.
7
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

Year ended December 31, 2022

Net assets, end of year $ $ 892,353 $ 10,881,204

9,988,851

The accompanying notes are an integral part of this consolidated financial

statement.
8
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

Year ended December 31, 2021

Without Donor With Donor

Restrictions Restrictions Total
R evenue and support
Contributions and grants $ 17,106,213 $ 1,236,950 $ 18,343,163
In-kind contributions 1,052,032 - 1,052,032
Bicycle social enterprise program 10,817,744 - 10,817,744
Other income 228,231 - 228,231
Net assets released from restrictions 290,492 -
(290,492)
Total revenue and support 29,494,712 946,458 30,441,170

Expenses
Program services
Social enterprise 16,363,016 - 16,363,016
Mobilized communities 3,045,629 - 3,045,629

Total program services 19,408,645 - 19,408,645

Supporting services
Management and administrative 1,346,000 - 1,346,000
Fundraising 3,565,427 - 3,565,427

Total supporting services 4,911,427 - 4,911,427

Total expenses before tax expense 24,320,072 - 24,320,072

Tax expense 250,951 - 250,951

Total expenses - 24,571,023

24,571,023
Increase in net assets from operating activities 4,923,689 946,458 5,870,147

Non-operating changes in net assets

Investment return (16,090) - (16,090)
Foreign exchange loss -
(631,300) (631,300)
INCREASE IN NET ASSETS 4,276,299 946,458 5,222,757

Net assets, beginning of year 9,217,403 75,000 9,292,403

The accompanying notes are an integral part of this consolidated financial

statement.
9
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

Year ended December 31, 2021

Net assets, end of year $ $ $ 14,515,160

13,493,702 1,021,458

The accompanying notes are an integral part of this consolidated financial

statement.
1
0
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES

Year ended December 31, 2022

Program Services Supporting Services

Total Management Total
Social Mobilized Program and Supporting
Enterprise Communities Services Administrative Fundraising Services Total

Bicycles and bicycle parts $ 11,042,911 $ 266,213 $ 11,309,124 $ - $ 15,355 $ 15,355 $ 11,324,479
Personnel 3,537,672 2,082,191 5,619,863 788,711 2,427,596 3,216,307 8,836,170
Professional services 706,773 220,985 927,758 962,505 818,831 1,781,336 2,709,094
Travel 491,184 348,707 839,891 123,851 219,482 343,333 1,183,224
Occupancy 470,211 55,151 525,362 92,197 144,167 236,364 761,726
Shipping and freight 11,053 9 11,062 3,240 33,330 36,570 47,632
Registrations and license fees 37,048 - 37,048 - - - 37,048
Product development costs 388,778 - 388,778 - - - 388,778
Repairs and maintenance 169,701 22,481 192,182 - 2,606 2,606 194,788
Supplies 238,221 87,947 326,168 180,388 167,030 347,418 673,586
Depreciation 131,830 65,573 197,403 14,140 23,743 37,883 235,286
Bank service charges 76,434 15,216 91,650 111,403 148,541 259,944 351,594
Printing 62,093 17,866 79,959 329 58,450 58,779 138,738
Insurance 80,902 9,832 90,734 45,695 2,628 48,323 139,057
Other expenses 81,041 168,324 249,365 - - - 249,365
Grants - 1,005,655 1,005,655 - - - 1,005,655
Bad debts - - - - 158,895 158,895 158,895
Taxes and duties 6,670 51 6,721 155 94 249 6,970
Advertising 61,453 - 61,453 - 78,645 78,645 140,098

$ 17,593,975 $ 4,366,201 $ 21,960,176 $ 2,322,614 $ 4,299,393 $ 6,622,007 $ 28,582,183

The accompanying notes are an integral part of this consolidated financial

statement.
1
1
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES

Year ended December 31, 2021

Program Services Supporting Services

Total Management Total
Social Mobilized Program and Supporting
Enterprise Communities Services Administrative Fundraising Services Total

Bicycles and bicycle parts $ 10,660,412 $ 114,271 $ $ - $ 17,714 $ 17,714 $ 10,792,397

10,774,683
Personnel 3,432,630 1,569,658 5,002,288 511,617 2,009,954 2,521,571 7,523,859
Professional services 417,910 108,939 526,849 536,111 670,096 1,206,207 1,733,056
Travel 279,303 214,169 493,472 33,268 113,312 146,580 640,052
Occupancy 349,161 87,322 436,483 71,261 153,374 224,635 661,118
Shipping and freight 22,136 798 22,934 2,733 47,060 49,793 72,727
Registrations and license fees 26,857 - 26,857 - - - 26,857
Product development costs 366,927 - 366,927 - - - 366,927
Repairs and maintenance 201,439 9,802 211,241 186 85 271 211,512
Supplies 169,797 52,909 222,706 129,229 155,431 284,660 507,366
Depreciation 85,016 44,446 129,462 8,207 29,442 37,649 167,111
Bank service charges 123,128 9,726 132,854 46,764 168,784 215,548 348,402
Printing 42,350 22,917 65,267 935 84,220 85,155 150,422
Insurance 61,088 14,278 75,366 5,678 13,909 19,587 94,953
Other expenses 62,035 29,129 91,164 - - - 91,164
Grants 34,204 749,004 783,208 - - - 783,208
Taxes and duties 3,017 18,261 21,278 11 - 11 21,289
Advertising 25,606 - 25,606 - 102,046 102,046 127,652

$ 16,363,016 $ 3,045,629 $ 19,408,645 $ 1,346,000 $ 3,565,427 $ 4,911,427 $ 24,320,072

The accompanying notes are an integral part of this consolidated financial

statement.
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 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended December 31,

2022 2021
Cash flows from operating activities:
Change in net assets $ $ 5,222,757

(3,633,956)
Adjustments to reconcile change in net assets to
net cash provided by (used in) operating
activities:
Depreciation 235,286 167,111
Investment loss - 18,816
Changes in assets and liabilities:
Contributions receivable 509,008 (2,169,95
2)
Trade receivables, net 422,299 (585,580
)
Inventory (1,582,203) (824,755
)
Prepayments (2,320,092) 145,163
Other assets 150,355 (145,725
)
Deferred tax 33,746 14,871
Operating leases right-of-use assets/liabilities 3,532 -
Accounts payable (610,251) 282,759
Accrued expenses (30,259) 58,811
Deferred revenue 76,763
(3,126)

Net cash provided by (used in) operating activities (6,745,772) 2,181,150

Cash flows from investing activities:

Purchase of fixed assets (265,050)

(640,428) Net cash used in

investing activities (265,050)

(640,428)

Cash flows from financing activities:

Repayment of loan - Small Business Administration - (150,000)
Proceeds from note payable 8,36 -
Repayment of note payable 7
- (1,569)

Net cash provided by (used in) financing activities 8,367 (151,569)

Effect of exchange rate change on cash or cash equivalents 3,970,522 508,628

CHANGE IN CASH AND CASH EQUIVALENTS (3,031,933) 1,897,781

Cash and cash equivalents, beginning of year 7,452,523 5,554,742

13
Cash and cash equivalents, end of year $ $

4,420,590 7,452,523

Supplemental disclosures of cash flow information:

Cash paid during the year for interest $ 42,932 $ 9,198

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

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 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022 and 2021

NOTE A - ORGANIZATION

World Bicycle Relief, NFP (WBR NFP) and its Subsidiaries (collectively, the “Organization”) is
helping individuals and their communities improve their lives through the power of bicycles.
WBR NFP provides people access to independence and opportunity through the power of
bicycles.

The Organization achieves its mission through two philanthropic programs, Mobilized
Communities, and a Social Enterprise, Buffalo Bicycles. Mobilized Communities partners with
communities to identify distance barriers and through the donation of bicycles and
supportive programming improves community access to health, education, and livelihoods
through integrated, multi-year, multi-sector programming. Buffalo Bicycles allows the
Organization to address the challenge of distance on a larger scale by playing an integral
role in Mobilized Communities while allowing access to the Buffalo Bicycle to organizations
outside of Mobilized Communities allowing for increased impact and funding of the
Organization.

The International Philanthropic Group of the Organization consists of the consolidated

activities of World Bicycle Relief UK, World Bicycle Relief Deutschland, World Bicycle Relief
Canada, World Bicycle Relief Switzerland, and World Bicycle Relief Australia for reporting
purposes. The Philanthropic Group consists of WBR NFP and the International Philanthropic
entities. All subsidiaries are discussed below.

World Bicycle Relief Zambia (WBR Zambia) is incorporated in the Republic of Zambia. It
serves to carry out the on-site Zambian program operations of the Organization.

Buffalo Bicycles Zambia (BB Zambia) is a for-profit subsidiary of Buffalo Bicycle Limited. BB
Zambia is incorporated as a private company limited by shares, registered in Zambia. BB
Zambia is engaged in the assembly and sale of bicycles and bicycle parts through the
Organization’s social enterprise program. BB Zambia is also engaged to carry out the
storage, assembly and distribution of the philanthropic bikes donated by WBR NFP and
responsible for field mechanic training.

World Bicycle Relief Kenya (WBR Kenya) is domiciled in Kenya as a branch of the
Organization. WBR Kenya is registered as a branch of WBR NFP in Kenya. It served to carry
out the on-site Kenyan program operations of the Organization through November of 2022
at which time it was dissolved.

Buffalo Bicycle Kenya Limited (BB Kenya) is a for-profit subsidiary of Buffalo Bicycle Limited.
BB Kenya is incorporated as a private company limited by shares, registered in Kenya. BB
Kenya is engaged in the assembly and sale of bicycles and bicycle parts through the
Organization’s social enterprise program. BB Kenya is also engaged to carry out the
storage, assembly and distribution of the philanthropic bikes donated by WBR NFP and is
responsible for field mechanic training.

World Bicycle Relief Malawi (WBR Malawi) is incorporated in the Republic of Malawi. It serves
to carry out the on-site Malawi program operations of the Organization.

Buffalo Bicycles Malawi (BB Malawi) is a for-profit subsidiary of Buffalo Bicycle Limited. BB
Malawi is incorporated as a private company limited by shares registered in Malawi. BB
Malawi is engaged in the assembly and sale of bicycles and bicycle parts through the
Organization’s social enterprise program. BB Malawi is also engaged to carry out the
storage, assembly and distribution of the philanthropic bikes donated by WBR NFP and
responsible for field mechanic training.

15
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022 and 2021

World Bicycle Relief (Private) Limited (WBR Zimbabwe) is a for-profit, limited liability
company incorporated and domiciled in Zimbabwe. Operating principally in Zimbabwe, it is
engaged in the assembly and sale of bicycles and bicycle parts through the Organization’s
social enterprise program. WBR Zimbabwe is also engaged to carry out the storage,
assembly and distribution of the philanthropic bikes donated by WBR NFP and is responsible
for field mechanic training.

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 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

Buffalo Bicycle South Africa (BB SA) is a for-profit entity controlled by WBR NFP. BB SA is
incorporated as a private company limited by shares, registered in South Africa. Activities of
BB SA are consolidated for reporting purposes; however, it is not part of the Philanthropic
Group for tax reporting purposes.

Buffalo Bicycle Limited (BBL) is a for-profit, private company limited by shares located in
Mauritius and is incorporated by Deutsche International Trust Corporation Limited. BBL is a
wholly owned subsidiary of the Organization. BBL carries out investment holding, trading
and treasury activities. BBL is a trading conduit for the product development, purchase, and
sale of bicycles, primarily to facilitate activities for subsidiary companies to be operated in
Sub-Saharan Africa.

World Bicycle Relief UK (WBR UK) is a non-profit private company limited by guarantee with
no share capital and one subscriber, WBR NFP. It was formed under The Companies Act of
2006 and 1986 in the United Kingdom. WBR UK’s objective is to relieve the needs of
people living in impoverished or disaster-stricken areas of the world by the provision of
bicycles to enable them to access education, employment, health care and other essentials
of life. Activities of WBR UK are consolidated under the Philanthropic Group for reporting
purposes, however, it is not part of the Philanthropic Group for tax reporting purposes.

World Bicycle Relief Deutschland (WBR DE) is a limited liability company incorporated in
Germany. WBR NFP is a shareholder of WBR DE. WBR DE’s objective is to relieve the needs
of people living in impoverished or disaster-stricken areas of the world by providing bicycles
to enable them to access education, employment, health care and other essentials of life.
Activities of WBR DE are consolidated under the Philanthropic Group for reporting purposes;
however, it is not part of the Philanthropic Group for tax reporting purposes.

World Bicycle Relief Australia Limited (WBR AU) is a non-profit private company limited by
guarantee with no share capital and one subscriber, WBR NFP. It was formed under The
Companies Act of 2001 in Australia. WBR AU’s objective is to relieve the needs of people
living in impoverished or disaster-stricken areas of the world by the provision of bicycles to
enable them to access education, employment, healthcare and other essentials of life.
Activities of WBR AU are consolidated under the Philanthropic Group for reporting purposes;
however, it is not part of the Philanthropic Group for tax reporting purposes.

World Bicycle Relief Canada (WBR CA) is a Canadian not-for-profit company. WBR CA’s
objective is to relieve poverty and advance education in developing nations by providing
bicycles to persons in need as means for such persons to obtain a livelihood and access to
education, work, and healthcare. Activities of WBR CA are consolidated under Philanthropic
Group for reporting purposes; however, it is not part of the Philanthropic Group for tax
reporting purposes.

World Bicycle Relief Switzerland (WBR CH) is a non-profit foundation, created and governed
by the present Articles of Association and in accordance with the Articles 80 et seq. of the
Swiss Civil Code. The foundation is registered in the Register of Commerce of the Canton of
Geneva and subject to supervision by the competent authority. World Bicycle Relief
Switzerland was founded by WBR NFP with an initial endowment of CHF 50,000. WBR CH’s
objective is to help people in the world’s troubled and impoverished areas gain a degree of
independence and a means to earn a living by giving them access to bicycles. World Bicycle
Relief Switzerland was registered on September 20, 2018. Activities of WBR CH are
consolidated under the Philanthropic Group for reporting purposes; however, it is not part of
the Philanthropic Group for tax reporting purposes.

World Bicycle Relief Colombia (WBR Colombia) was registered in Colombia on November 18,

17
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

2019. It serves to carry out the on-site Colombia program operations of the Organization
beginning in 2020.

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 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

Buffalo Bicycles Colombia (BB Colombia), a for-profit entity, was registered on October 24,
2019, as a Simplified Stock Society & Company (SAS) controlled by Andrew Wright, BB
Colombia’s Country Director, as of December 31, 2019. Beginning in 2020, BB Colombia is
controlled by the Organization and is engaged in the assembly and sale of bicycles and
bicycle parts through the Organization’s social enterprise program. BB Colombia is also
engaged to carry out the storage, assembly and distribution of the philanthropic bikes
donated by WBR NFP and is responsible for field mechanic training.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation
The accompanying consolidated financial statements of the organization have been
prepared in accordance with accounting principles generally accepted in the United States of
America (“U.S. GAAP”). All significant inter-organization accounts and transactions have
been eliminated in consolidation.
Basis of Presentation
The Organization is required to report information regarding its financial position and
activities according to two classes of net assets: without donor restrictions and with donor
restrictions. Additionally, information is required to segregate program service expenses
from supporting services. Supporting services include management and administrative and
fundraising expenses.
Revenue Recognition
Contributions and Grants
Contributions and grants received are recorded as with donor restrictions or without donor
restrictions, depending on the existence and/or nature of any donor restrictions. Conditional
promises to give are not recognized until they become unconditional, that is, when the
conditions on which they depend are substantially met. Contributions of assets other than
cash are recorded at their estimated fair value. The expiration of temporary restrictions on
net assets (i.e., the donor-imposed stipulated purpose has been fulfilled or the stipulated
time period has elapsed) are reported as reclassifications between the classes of net assets.
Donated investments are recorded at fair value as of the date of the contributions. Gains
and losses on investments and other assets or liabilities are reported as increases or
decreases in net assets without donor restrictions, unless their use is restricted by explicit
donor stipulation or by law.
Bicycle Social Enterprise Program Revenue
The Organization’s social enterprise program revenues primarily consists of the sale of
bicycles, and the Organization’s contracts contain a single performance obligation. Revenue
is recognized upon delivery of the goods to the customer, which is when the customer
obtains control of the goods and has the ability to direct the use of the goods. Payment is
typically received within 30-60 days from the delivery date. None of the Organization’s
contracts contain a significant financing component, nor significant forms of variable
consideration. Differences between the amount of revenue recognized and the amount
invoiced, collected from, or paid to the Organization’s customers are recognized as contract
assets or contract liabilities. There are no contract assets as of December 31, 2022 and
2021. The Organization’s contract liabilities consist of deferred revenue, as reported on the
consolidated statements of financial position.

Net Assets
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 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

Net assets are classified based on donor restrictions, if any, as follows:

Net Assets Without Donor Restrictions - Net assets that are free of donor-imposed
restrictions; all revenue, expenses, gains and losses that are not changes in net assets with
donor restrictions.

20
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

Net Assets With Donor Restrictions - Net assets, the use of which is limited by donor-
imposed restrictions that expire with the passage of time or that will be fulfilled in a future
time period, or net assets to be invested in perpetuity.

Prepayments
Prepayments consist of prepaid insurance, prepaid rent, and prepaid technology and license
fees. Prepaid insurance is reclassified to expense, as insurance coverage is incurred over the
life of the insurance policy. Prepaid rent is reclassified to expense over the life of the lease
agreement. Prepaid technology and license fees are reclassified as registration and license
fees over the life of the licensing agreement.
Deferred Revenue
Deferred revenue represents cash collected for revenue transactions that have not yet been
earned. This is primarily composed of revenue for sales of bicycles for which cash has been
received from the customer, but the control of the bicycles has not yet been transferred to
the customer.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the consolidated financial statements, and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Trade Receivables and Bad Debts
The majority of the Organization’s trade receivables are due from the purchase of bicycles
through the Organization’s social enterprise program. Credit is extended based on an
evaluation of a customer’s financial condition and collateral is not required. Trade
receivables are due within 30 days and stated at amounts due from customers net of an
allowance for bad debts. Trade receivables are charged to bad debt expense when they are
determined to be uncollectible based on a periodic review of accounts by management. The
Organization determines its uncollectible accounts by considering a number of factors,
including the length of time receivables are past due, the Organization’s previous collection
history, the entity’s current ability to pay its obligation, and the condition of the general
economy and the industry as a whole. As of December 31, 2022 and 2021, the
Organization’s allowance for uncollectible accounts was
$767 and $44,205, respectively.
Contributions and Contributions Receivable
As of December 31, 2022 and 2021, foundations, individuals and corporations have
unconditionally promised to give $1,999,158 and $2,615,386, respectively, to be used for
programs and general support. Amounts are due within the next year.
The Organization received a conditional multi-year grant from USAID for the Bicycles for
Growth activity in sub-Saharan Africa. Conditional promises to give are not recognized until
they become unconditional. The total amounts of conditional promises to give at
December 31, 2022 and 2021 were $1,166,727 and
$1,416,727, respectively.

Inventory

Inventory consists mainly of bicycles and bicycle parts. Inventory is stated at the lower of

21
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

cost or net realizable value.

Advertising

Advertising costs are charged to operations when incurred.

22
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

Capitalization and Depreciation

Vehicles, furniture, and equipment are recorded at cost, net of accumulated depreciation.
Vehicles, furniture, and equipment above $2,500 are capitalized, while expenditures for
maintenance and repairs are charged to expense as incurred. Upon disposal of depreciable
property, the appropriate property accounts are reduced by the related costs and
accumulated depreciation. Assets are depreciated over their estimated service lives. The
estimated service lives of the assets for depreciation purposes may be different than their
actual economic useful lives.

Estimated Method
Life

Vehicles 4 - 5 years Straight-

Furniture and equipment 3 - 8 years line
Straight-
Breakdown of fixed assets by asset class as of December 31: line

2022 2021

Vehicles $ $

871,723 1,138,488
Furniture and equipment 525,120 505,072

Total fixed assets 1,396,843 1,643,560

Accumulated depreciation (859,647) (788,417)

Fixed assets, net $ $ 855,143

537,196

Income Taxes

As noted in Note A, certain subsidiaries of the Organization are for-profit, taxable entities.
Income taxes are accounted for using the asset and liability method that requires the
recognition of deferred income tax assets and liabilities based on the difference between the
consolidated financial statements and tax basis of assets and liabilities using enacted tax
rates in effect in the years in which the differences are expected to reverse. The
Organization nets all deferred income tax assets and liabilities and classifies them as non-
current in the accompanying consolidated statements of financial position. Valuation
allowances are provided if, based upon the weight of available evidence, it is more likely
than not that some or all of the deferred tax assets will not be realized.

The Organization evaluates uncertain tax positions to determine if it is more likely than not
that they would be sustained upon examination. The Organization records a liability when
such uncertainties fail to meet the more-likely-than-not threshold.

Foreign Currency Translation

Transactions in currencies other than dollars are translated into dollars at the rates of
exchange in effect at the date of the transaction or at an average currency valuation for the
period. Property and equipment purchased with non-U.S. currency are translated into dollars
at the exchange rate in effect at the time of the purchase. Current assets and liabilities
23
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

denominated in non-U.S. currency are translated into dollars at the exchange rate in effect
at the date of the consolidated statements of financial position. Changes in foreign currency
exchange rates throughout the year can create fluctuations in the consolidated financial
position, changes in net assets, and cash flows of the Organization. During the years ended
December 31, 2022 and 2021, it was noted that the Zimbabwe currency experienced above-
average levels of inflation, which had a significant impact on the consolidated financial
statements.

24
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

Recent Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02,
Leases (Topic 842). These new standard increases transparency and comparability among
organizations by requiring the recognition of right-of-use (ROU) assets and lease liabilities on
the balance sheet. Most prominent among the changes in the standard is the recognition of
ROU assets and lease liabilities by lessees for those leases classified as operating leases.
Under the standard, disclosures are required to meet the objective of enabling users of
financial statements to assess the amount, timing, and uncertainty of cash flows arising
from leases.

The Organization adopted the requirements of the guidance effective January 1, 2022, and
has elected to apply the provisions of this standard to the beginning of the period of
adoption. The Organization has elected to adopt the package of practical expedients
available in the year of adoption.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326):
Measurement of Credit Losses of Financial Instruments (“ASU 2016-13”), which, together with
subsequent amendments, amends the requirement on the measurement and recognition of
expected credit losses for financial assets held. ASU 2016-13 is effective for the Organization
for fiscal year 2023. The Organization is currently in the process of evaluating the effects of
this pronouncement on the Organization's consolidated financial statements and does not
expect it to have a material impact on the consolidated financial statements.

In September 2020, the FASB issued ASU 2020-07, Presentation and Disclosures by Not-for-Profit
Entities for Contributed Nonfinancial Assets, which increases the transparency of contributed
nonfinancial assets for not-for-profit entities through enhancements to presentation and
disclosure. ASU 2020-07 requires not- for-profit entities to present contributed nonfinancial
assets as a separate line item in the statement of activities, apart from contributions of cash
and other financial assets and requires additional disclosures, including a disclosure of a
disaggregation of the amount of contributed nonfinancial assets by category. The
Organization adopted the provisions of ASU 2020-07 on a retrospective basis at January 1,
2022 and the impact was not material to the consolidated financial statements or
disclosures.

Reclassifications

Certain amounts in the prior year have been reclassified in order to conform with the current
year’s presentation. This reclassification has no effect on the change in net assets during the
year.

NOTE C - CASH AND CASH EQUIVALENTS

The Organization maintains its cash-in-bank deposit accounts, which at times may exceed
federally insured limits. The Organization has not experienced any losses in such accounts.
The Organization maintained cash in foreign bank accounts totaling $3,588,104 and
$4,718,553 on December 31, 2022 and 2021, respectively. The Organization had domestic
balances exceeding the Federal Deposit Insurance Corporation’s insured limitations at
December 31, 2022 and 2021. The Organization does not believe these accounts to be a
significant credit risk. The Organization also maintains brokerage accounts for accepting
donations. These securities donations are sold upon receipt and converted to cash. The
Organization considers cash equivalents to be all short-term, highly liquid investments with
maturities of three months or less at time of purchase.

25
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

NOTE D - LEASE COMMITMENTS

The Organization conducts a portion of its operations utilizing leased facilities consisting of
office, warehouse space, and retail shops that have various expiration dates through May
2027. These are classified as operating leases. The Organization determines if a contract
contains a lease when the contract conveys the right to control the use of identified property
or equipment for a period of time in exchange for consideration. Upon such identification
and commencement of a lease, the Organization establishes a ROU asset and a lease
liability in the statement of financial position if the lease term exceeds one year.

A lease component is defined as an asset within the lease contract that a lessee can benefit
from the use of and is not highly dependent or interrelated with other assets in the
arrangement. The Organization has determined that all of its leases contain one lease
component related to the buildings or shops.

The lease liability represents future fixed lease payments for leases, discounted for present
value. Certain leases contain rent escalation clauses that are specifically stated in the lease,
which are included in the calculation of the lease liability.

The lease term is determined by taking into account the initial period as stated in the lease
contract and adjusted for any renewal options that the Organization is reasonably certain to
exercise, as well as any period of time that the lessee has control of the space before the
stated initial term of the lease.

The Organization uses the risk-free rate of return when calculating the lease liability and related
ROU asset.

Minimum future lease payments under non-cancelable operating leases having remaining
terms in excess of one year as of December 31, 2022, are as follows:

Years Ending December 31,

2023 $ 169,857
2024 37,373
2025 2,916
2026 2,916
2027 1,215

Total minimum lease payments 214,277

Less: imputed interest (1,402)

Present value of future minimum lease payments $ 212,875

Supplemental statement of financial position information related to operating leases at

December 31, 2022 and 2021 was as follows:

2022 2021

Weighted-average remaining lease term (in months) 10 -

Weighted-average discount rate 0.67% -

Supplemental cash flow information related to leases was as follows during

2022: Cash paid for amounts included in measurement of lease

26
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

obligations:
Operating cash flows from operating leases $ 261,272
Right-of-use assets obtained in exchange for lease obligations $ 471,726

27
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

The Organization was committed to non-cancelable leases under 842 for year ended December
31, 2021.

Years Ending December 31,

2022 $ 195,093
2023 48,391
2024 7,013

Rental expense was $407,418 and $408,302 for the years ended 2022 and
December 31, respectively. 2021,

NOTE E - INVENTORY

Inventory balances are comprised of the following as of December 31:

2022 2021

Raw materials and spare parts $ 1,734,058 $ 1,077,935

Work in process 397,529 639,580
Finished goods 677,818 682,754

Total inventory $ 2,809,405 $ 2,400,269

NOTE F - IN-KIND CONTRIBUTIONS

During the years ended December 31, 2022 and 2021, the Organization received in-kind
contributions, including rent, utilities, and advertising. The estimated fair value of in-kind
contributions is based on comparable market rates for rent, utilities, and advertising in
the Organization’s local market and was
$323,634 and $341,041 for the years ended December 31, 2022 and 2021, respectively.
During the years ended December 31, 2022 and 2021, the Organization also received
donated services, including legal advice, consulting services and implementation services.
The estimated fair value of donated services is based on current rates for similar services
and was $961,583 and $710,991 for the years ended December 31, 2022 and 2021,
respectively. These in-kind contributions and donated services were received without donor-
imposed restrictions and were used primarily to support the implementation of
programmatic activities and other supporting services and have been recorded as in-kind
contributions in the accompanying consolidated statements of activities and changes in net
assets.

NOTE G - RESTRICTED NET ASSETS

Net assets with donor restrictions include contributions or grants subject to donor-imposed
restrictions as to the purpose that may or will be met by actions of the Organization, or that
expire by the passage of time. The Organization releases net assets from donor restrictions
to net assets without donor restrictions when the donor’s restrictions have been satisfied, or
the time restriction in place has been met.

28
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

The following table summarizes net assets with donor restrictions as of December 31:

2022 2021

Pledges receivable, time restricted for use in future $ 632,799 $ 921,537

periods Purpose restricted contributions:
Mobilized Communities - Twachiyanda Area Program - 99,921
Mobilized Communities - Nyanza's Community 100,000 -
Program
Mobilized Communities - Mumbwa Area Program 102,128 -
Mobilized Communities - La Guajira Area Program 57,426 -

Total net assets with donor restrictions $ 892,353 $ 1,021,45

8

The following table summarizes the net assets that were released from donor restrictions by
incurring expenses satisfying the restricted purposes for years ended December 31,

2022 2021
Purpose restricted contributions:
Mobilized Communities - Twachiyanda Area Program $ 99,921 $ 75,000
Mobilized Communities - Mumbwa Area Program 243,47 215,492
8
Mobilized Communities - Siaya Area Program 147,655 -
Mobilized Communities - Mumias East Program 144,500 -
Mobilized Communities - Zomba and Kasungu Area 650,150 -
Program
Mobilized Communities - Hwange Area Program 288,738 -

Total net assets released from restictions $ 1,574,44 $ 290,492

2

NOTE H - LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS

The Organization’s financial assets available within one year of December 31, 2022 and
2021, respectively, for general expenditures without donor or other restrictions are as
follows:

2022 2021

Cash and cash equivalents $ 4,420,590 $

7,452,523
Contributions receivable 1,999,158 2,308,20
7
Trade receivables, net 884,802 1,829,00
4

Total $ 7,304,550 $ 11,589,73

4

The Organization’s working capital and cash flows have seasonal variations during the year
attributable to the concentration of contributions received near calendar year end. To
manage liquidity, the Organization maintained a line of credit for $3,000,000 in 2022 and
29
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

$2,300,000 in 2021 with a bank that is drawn upon as needed during the year to manage
cash flow.

NOTE I - FUNCTIONAL EXPENSES

The costs of providing the various programs and other activities of the Organization have
been summarized on a functional basis in the accompanying consolidated financial
statements. Accordingly, certain expenses have been allocated among the activities and
programs benefited. Expenses are reductions in net assets

30
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

without donor restrictions and are recorded as incurred. Personnel expenses have been
allocated based on estimates of time and effort by department. Occupancy expenses have
been allocated based on percentage of staff working at each location and their effort by
department. Professional services are allocated based on services performed and split out
by hours or percentage of work completed.

NOTE J - RELATED-PARTY TRANSACTIONS

The Organization defines related parties as individuals currently working for the
Organization, members of the WBR NFP board of directors, and interested persons. The
Organization received contributions from related parties for the years ended December 31
as follows:

2022 2021

Contributions from related parties $ 1,716,292 $

1,403,582
In-kind donations and donated services from related 262,588 327,376
parties

Total $ 1,978,880 $ 1,730,95

8

The Organization also provides cash reimbursement to related parties for expenses paid on
behalf of the Organization. The amounts of the transactions for the years ended December
31, were as follows:

2022 2021

Cash reimbursement to related parties for expenses paid

on behalf of the organization $ 177,305 $ 323,547
Payables due to/(from) related parties for cash (85,854) (11,032
reimbursements )

NOTE K - INCOME TAXES

WBR NFP is a not-for-profit entity, as described in Section 501(c)(3) of the Internal Revenue
Code (IRC) and was organized and incorporated in Illinois as a not-for-profit organization in
2006. WBR NFP has received a favorable determination letter from the Internal Revenue
Service (IRS) for its section 501(c)(3) status under the IRC of 1986, and is exempt from
income taxes, except to the extent of any unrelated business income. For the periods ended
December 31, 2022 and 2021, the Organization does not have unrelated business income.

As noted in Note A, WBR Zimbabwe, BB Kenya, BB Zambia, BB Malawi and BBL are for-profit
entities. WBR Zimbabwe, BB Malawi and BB Kenya have a deferred tax asset as of
December 31, 2022 and 2021, which covered any tax liability. BB Zambia and BBL did not
have either a deferred tax asset or liability as of December 31, 2022 and 2021.

31
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

Pre-tax income (loss) generated from the for-profit entities for the years ended December 31, are
as follows:

2022 2021

WBR Zimbabwe $ 284,709 $ 547,226

BB Kenya (257,587) (127,266
)
BB Zambia 249,736 151,799
BB Malawi 48,218 101,595
BB Colombia 128,188 60,496
WBR Colombia (66,864) 40,415
BBL 317,323 (88,787
)

Total $ 703,723 $ 685,478

The statutory tax rate for each entity as of December 31, are as follows:
2022 2021

WBR Zimbabwe 25% 25%

BB Kenya 30% 30%
BB Zambia 30% 35%
BB Malawi 30% 30%
BB Colombia 35% 31%
WBR Colombia 35% 31%
BBL 3% 3%

Income tax expense for the years ended December 31, are as follows:

2022 2021

Current $ 140,761 $ 92,688

Deferred 94,438 158,263

Total $ 235,199 $ 250,951

The components of the deferred tax asset at December 31, are as follows:
2022 2021

Beginning of year $ 481,692 $ 494,746

Accelerated capital allowances 3,917 -
Exchange differences 185 (137,831
)
Warranty provisions (241)

(98)
Realized gain (loss) in foreign loan - 704
Net operating loss carryforward 124,314

(22,218)

32
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

Total $ 463,478 $ 481,692

33
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

As of December 31, 2022 and 2021, management has determined that there are no material
uncertain positions that require recognition in the consolidated financial statements. As of
December 31, 2022 and 2021, management has concluded that it is more likely than not
that the tax benefits of its deferred tax assets would be realized and, accordingly, has not
recorded a valuation allowance.

NOTE L - EMPLOYEE BENEFIT PLAN

WBR NFP participates in a Profit Sharing 401(k) Plan (the U.S. Plan) covering substantially all
of WBR NFP’s employees who are salaried or temporary during the U.S. Plan year. Interns
and part-time employees are not eligible for the U.S. Plan. The U.S. Plan is a voluntary
defined contribution retirement plan. Employer contributions are computed as 3% of
covered employees’ compensation, and 50% of the next 2% contributed by the employee.

WBR DE participates in a defined benefit retirement plan (the DE Plan) covering all of WBR
DE’s employees who were employed during the plan year. Employer contributions for the DE
Plan are computed based on the minimum requirements per the country.

WBR UK participates in The National Employment Savings Trust (NEST) a defined

contribution workplace pension scheme in the United Kingdom. Employer contributions for
the UK Plan are computed based on the minimum requirements per the country.

WBR AU participates in a Superannuation plan, an arrangement put in place by the

Government of Australia to assist people in Australia to accumulate money for an income in
retirement. Employer contributions for the AU Plan are computed based on the minimum
requirements per the country.

The Organization’s contributions for all plans, funded on a current basis, were $170,787 and
$165,059 and for the years ended December 31, 2022 and 2021, respectively.

NOTE M - IRS FORM 990

The Organization’s consolidated financial statements and independent auditor’s report
consist of all related entities that make up the operations of the Organization and provide a
comprehensive financial report of activities. The audited consolidated financial statements
include both entities incorporated in the United States and controlled foreign corporations
incorporated in their respective countries.

WBR NFP’s IRS Form 990 does not include a significant portion of its global activities. The
990 is a United States tax filing that consists of entities incorporated in the United States
and any entities that are branches of that corporation. The 990 filed by WBR NFP consists of
operations of World Bicycle Relief in the United States and Kenya. It does not contain
controlled foreign corporations that make up much of the global picture of WBR NFP’s
operations. The absence of these entities for the year ending December 31, 2022 causes the
below approximate reductions by category:

 $5.77 million of contributions

 $8.68 million of social enterprise sales

 $16.07 million of social enterprise program expense

 $6.19 million of mobilized communities program expense

 $176 thousand of management and administrative expense

34
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

 $1.37 million of fundraising expense

35
 World Bicycle Relief, NFP and its Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2022 and 2021

NOTE N - LINE OF CREDIT

On June 22, 2015, the Organization entered into a line of credit (the “Facility”). The Facility
was established to fund large social enterprise bicycle orders and allow the Organization to
have access to cash levels throughout the year. The Facility matured on April 30, 2020 and
had a capacity of $1,700,000.

A new line of credit (the “New Facility”) was entered into on June 18, 2020. The New Facility
has a maturity date of June 13, 2022 and a capacity of $2,300,000. On June 13, 2022, The
Organization renewed their agreement. The latest line of credit has a maturity date of
August 13, 2023 and a capacity of $3,000,000.

There was no balance outstanding on the New Facility as of December 31, 2022 and 2021.

Interest under the New Facility is to be paid monthly in arrears at the Prime-Based Rate of
1.80% or the Prime Rate minus 1.45%, whichever is greater. The interest rates as of
December 31, 2022 and 2021, were 1.8% and 1.82%, respectively. Interest expense
incurred amounted to $42,872 and $11,429, during the years ended December 31, 2022 and
2021, respectively.

NOTE O - SUBSEQUENT EVENTS

In preparation of these consolidated financial statements, the Organization has evaluated

events and transactions for potential recognition or disclosure through June 28, 2023, the
date the consolidated financial statements were available to be issued.

The Organization increased its line of credit from $3 million to $6 million effective on April 13,
2023 to allow for business growth and cash flow flexibility.

36
SUPPLEMENTAL INFORMATION
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATING STATEMENT OF FINANCIAL POSITION

December 31, 2022

International Philanthropic
WBR NFP Philanthropic Group Zambia Kenya Zimbabwe Mauritius Malawi South Africa Colombia Spain Eliminations Consolidated
ASSETS

Current assets
Cash and cash equivalents $ 832,486 $ 2,400,883 $ 3,233,369 $ 29,025 $ 202,175 $ 175,125 $ 440,644 $ 16,953 $ 63 $ 285,056 $ 38,180 $ - $

4,420,590
Contributions receivable 947,853 1,051,305 1,999,158 - - - - - - - - -

1,999,158
Trade receivables, net 6,579 12,906 19,485 282,242 11,907 96,428 - 333,106 - 141,634 - -

884,802
Inventory - - - 847,634 638,788 428,659 25,939 504,386 - 363,999 - -

2,809,405
Prepayments 186,169 10,199 196,368 758,710 37,019 692,740 8,395 103,279 - 360 245 -

1,797,116
Other assets 185 17,578 17,763 103,308 23,856 145,650 - 204,549 - - 46 -
Due from affiliates
495,172
Zimbabwe - - - - - - - - - - - - -
International Philanthropic 1,085,361 - 1,085,361 75,133 - 64,542 - 4,436 - - - (1,229,472) -
WBR NFP - - - - - - - - - - - - -
Zambia - - - - - - - - - - - - -

Total current assets 3,058,633 3,492,871 6,551,504 2,096,052 913,745 1,603,144 474,978 1,166,709 63 791,049 38,471 (1,229,472) 12,406,243

Non-current assets
Due from affiliates Zambia
Kenya Zimbabwe 1,389,68 - 1,389,688 - - - 486,804 - - - - (1,876,492) -
8
Malawi Mauritius
1,381,89 - 1,381,897 - - - 791,170 - - - - (2,173,067) -
South Africa Colombia 7
Spain - - - - - - 4,638,434 - - - - (4,638,434) -
Contributions 6,365 - 6,365 - - - 2,466,770 - - - - (2,473,135) -
receivable Deferred 6,008,65 500,133 6,508,790 - - - - - - - - (6,508,790) -
tax asset Fixed 7
- - - - - - 3,616 - - - - (3,616) -
assets, net
146,419 120,209 266,628 - - - - - - - 670,329 (936,957) -
Operating lease right-of-use assets - - - 25,596 69,445 47,789 - 43,318 - 24,218 - - 210,366
723,322 - 723,322 - - - 26,600 - - - - (749,922) -
Total assets - - - - - - - - - - - - -
$ 12,804,362
- $ 4,113,213
- $ 16,917,575
- $ 2,246,379
57,907 $ 1,287,880
198,199 $ 1,691,364
(18,274) $ 8,888,372
- $ 1,500,620
182,982 $ 63
- $ 964,221
42,664 $ 710,694
- $ - $ 13,617,283
463,478
(20,589,885)

26
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATING STATEMENT OF FINANCIAL POSITION - CONTINUED

December 31, 2022

International Philanthropic
WBR NFP Philanthropic Group Zambia Kenya Zimbabwe Mauritius Malawi South Africa Colombia Spain Eliminations Consolidated
LIABILITIES AND NET ASSETS

Current liabilities
Accounts payable $ 76,160 $ 38,191 $ 114,351 $ 494,297 $ 171,373 $ 33,331 $ 240,435 $ 24,643 $ 3,824 $ 293,372 $ - $ - $

1,375,626
Accrued expenses 245,524 268,767 514,291 335,069 12,613 12,165 26,469 11,704 13,576 39,246 5,839 -

970,972
Deferred revenue - - - 80,699 40,145 - 768 6,874 - 48,120 - -

176,606
Operating lease liabilities - - - 22,738 35,437 46,195 - 39,964 - 24,480 - - 168,814
Due to affiliates -
(1,351,989 -
WBR US - 1,085,361 1,085,361 - - - - - - 266,628 - )
Zambia - 2,341 2,341 - - - - - - - - (2,341) -
Zimbabwe 64,542 - 64,542 - - - - - - - - (64,542) -
Malawi - 10,801 10,801 - - - - - - - - (10,801) -
Mauritius - - - - - - - - - - - - -

Total current liabilities 386,226 1,405,461 1,791,687 932,803 259,568 91,691 267,672 83,185 17,400 671,846 5,839 (1,429,673) 2,692,018

Non-current liabilities
O perating lease liabilities - - - 3,213 34,920 2,095 - 3,833 - - - -
Due to affiliates 44,061
Philanthropic Group - - - 1,462,480 1,381,897 - 6,508,790 - - - 723,322 (10,076,489) -
Spain - - - - - - - - - 670,329 - (670,329) -
Mauritius - - - 486,804 791,170 4,638,434 - 2,466,770 3,616 - 26,600 (8,413,394) -

Total liabilities 386,226 1,405,461 1,791,687 2,885,300 2,467,555 4,732,220 6,776,462 2,553,788 21,016 1,342,175 755,761 (20,589,885) 2,736,079

Net assets
Without donor restrictions 12,318,136 1,915,399 14,233,535 (638,921) (1,179,675) (3,040,856) 2,111,910 (1,053,168) (20,953) (377,954) (45,067) - 9,988,85
1
With donor restrictions 100,000 792,353 892,353 - - - - - - - - - 892,353

Total net assets 12,418,136 2,707,752 15,125,888 (638,921) (1,179,675) (3,040,856) 2,111,910 (1,053,168) (20,953) (377,954) (45,067) - 10,881,204

Total liabilities and net assets $ 12,804,362 $ 4,113,213 $ 16,917,575 $ 2,246,379 $ 1,287,880 $ 1,691,364 $ 8,888,372 $ 1,500,620 $ 63 $ 964,221 $ 710,694 $ (20,589,885) $ 13,617,283

27
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATING STATEMENT OF FINANCIAL POSITION

December 31, 2021

International Philanthropic
WBR NFP Philanthropic Group Zambia Kenya Zimbabwe Mauritius Malawi South Africa Colombia Spain Eliminations Consolidated
ASSETS

Current assets
Cash and cash equivalents $ 2,733,970 $ 3,821,346 $ 6,555,316 $ 43,159 $ 138,753 $ 379,291 $ 38,694 $ 173,140 $ 158 $ 64,750 $ 59,262 $ - $ 7,452,523
Contributions receivable Trade 1,204,247 1,103,960 2,308,207 - - - - - - - - - 2,308,207
receivables, net Inventory 4,742 - 4,742 292,000 51,146 148,801 492,432 531,467 - 308,416 - - 1,829,004
Prepayments Other - - - 1,182,764 194,329 521,581 95,705 279,635 - 126,255 - - 2,400,269
assets 168,100 11,667 179,767 289,199 22,690 620,513 14,750 150,304 - 4,598 313 - 1,282,134
Due from affiliates 414 - 414 - 7,207 - - 180 - - 49 - 7,850
Zimbabwe
International - - - - - - - - - - - - -
Philanthropic WBR NFP 362,612 - 362,612 97,053 - 113,466 - 3,387 - - - (576,518) -
Zambia - - - - - - - - - - - - -
- - - - - - - - - - - - -
Total current assets
4,474,085 4,936,973 9,411,058 1,904,175 414,125 1,783,652 641,581 1,138,113 158 504,019 59,624 (576,518) 15,279,987
Non-current assets
Due from affiliates Zambia
Kenya Zimbabwe 1,353,426 - 1,353,426 - - - 174,801 - - - - (1,528,227) -
Malawi Mauritius 996,266 - 996,266 - - - 725,342 - - - - (1,721,608) -
South Africa Colombia - - - - - - 3,494,821 - - - - (3,494,821) -
Spain - - - - - - 2,177,924 - - - - (2,177,924) -
Contributions 4,939,278 324,663 5,263,941 - - - - - - - - (5,263,941) -
receivable Deferred - - - - - - 3,316 - - - - (3,316) -
tax asset Fixed 247,509 14,813 262,322 - - - - - - - 587,755 (850,077) -
assets, net 694,374 - 694,374 - - - - - - - - (694,374) -
- 307,179 307,179 - - - - - - - - - 307,179
Total assets $ -
12,859,617 $ -
5,583,628 $ -
18,443,245 109,729
$ 2,076,771 $ 191,810
670,630 $ (43,673)
2,088,886 $ -
7,217,785 $ 191,706
1,403,422 $ -
158 $ 32,120
682,500 $ -
651,410 $ - $ 481,692
16,924,001
154,679
(16,310,806) - 154,679 62,867 64,695 348,907 - 73,603 - 146,361 4,031 - 855,143

28
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATING STATEMENT OF FINANCIAL POSITION - CONTINUED

December 31, 2021

International Philanthropic
WBR NFP Philanthropic Group Zambia Kenya Zimbabwe Mauritius Malawi South Africa Colombia Spain Eliminations Consolidated
LIABILITIES AND NET ASSETS

Current liabilities
Accounts payable $ 105,635 $ 21,216 $ 126,851 $ 651,976 $ 27,118 $ 168,300 $ 293,812 $ 13,935 $ 580 $ 106,072 $ - $ - $

1,388,644
Accrued expenses 145,505 70,675 216,180 330,339 26,038 199,276 80,309 - 14,369 29,726 6,211 -

902,448
Deferred revenue - - - 81,953 26,291 - 768 7,575 - 1,162 - -
Due to affiliates
117,749
WBR US - 362,612 362,612 - - - - - - 262,322 - (624,934) -
Zambia - 2,545 2,545 - - - - - - - - (2,545) -
Zimbabwe 113,466 - 113,466 - - - - - - - - (113,466) -
Malawi 3,387 - 3,387 - - - - - - - - (3,387) -
Mauritius - - - - - - - - - - - - - Total

current liabilities 367,993 457,048 825,041 1,064,268 79,447 367,576 374,889 21,510 14,949 399,282 6,211 (744,332) 2,408,841

Non-current liabilities
Due to affiliates
Philanthropic Group - - - 1,447,934 996,266 - 5,263,941 - - - 694,374 (8,402,515) -
Spain - - - - - - - - - 587,755 - (587,755) -
Mauritius - - - 174,801 725,342 3,494,821 - 2,177,924 3,316 - - (6,576,204) -

Total liabilities 367,993 457,048 825,041 2,687,003 1,801,055 3,862,397 5,638,830 2,199,434 18,265 987,037 700,585 2,408,841
(16,310,806)

Net assets
Without donor restrictions 12,391,703 4,205,043 16,596,746 (610,232) (1,130,425) (1,773,511) 1,578,955 (796,012) (18,107) (304,537) (49,175) - 13,493,702
With donor restrictions 99,921 921,537 1,021,458 - - - - - - - - - 1,021,458

Total net assets 12,491,624 5,126,580 17,618,204 (610,232) (1,130,425) (1,773,511) 1,578,955 (796,012) (18,107) (304,537) (49,175) - 14,515,160

Total liabilities and net assets $ 12,859,617 $ 5,583,628 $ 18,443,245 $ 2,076,771 $ 670,630 $ 2,088,886 $ 7,217,785 $ 1,403,422 $ 158 $ 682,500 $ 651,410 $ (16,310,806) $ 16,924,001

29
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

Year ended December 31, 2022

International Philanthropic
WBR NFP Philanthropic Group Zambia Kenya Zimbabwe Mauritius Malawi South Africa Colombia Spain Eliminations Consolidated
Revenue and support
Contributions and grants $ $ $ $ 315,872 $ 241,920 $ 620,449 $ 4,385 $ 275,760 $ 258,424 $ $ - $ $
12,203,140 6,270,425 18,473,565 1,677,500 (5,050,931) 16,816,944
In-kind contributions 1,285,217 - 1,285,217 - - - - - - - - - 1,285,217
Bicycle social enterprise program - - - 4,596,083 1,555,984 2,364,912 5,298,217 927,023 - 1,412,368 - 8,680,039
(7,474,548)
Other income 44,268 108,318 152,586 - 17,121 17,483 627,644 74 - 52,692 - (649,171) 218,429

Total revenue and support 13,532,625 6,378,743 19,911,368 4,911,955 1,815,025 3,002,844 5,930,246 1,202,857 258,424 3,142,560 - (13,174,650) 27,000,629

Expenses
Program services
Social enterprise 1,040,265 501,382 1,541,647 4,665,406 2,072,729 2,718,136 5,612,923 1,154,639 - 1,336,795 26,795 (1,535,095) 17,593,975
Mobilized communities 7,603,549 6,395,367 13,998,916 - - - - - 262,399 1,744,441 - (11,639,555)

4,366,201 Total program services 8,643,814 6,896,749 15,540,563 4,665,406 2,072,729 2,718,136 5,612,923 1,154,639 262,399 3,081,236 26,795 (13,174,650) 21,960,176

Supporting services
Management and administrative 2,146,838 175,776 2,322,614 - - - - - - - - - 2,322,614
Fundraising 2,930,626 1,368,767 4,299,393 - - - - - - - - - 4,299,393

Total supporting services 5,077,464 1,544,543 6,622,007 - - - - - - - - - 6,622,007

Total expenses before tax expense (benefit) 13,721,278 8,441,292 22,162,570 4,665,406 2,072,729 2,718,136 5,612,923 1,154,639 262,399 3,081,236 26,795 (13,174,650)

28,582,183

Tax expense (benefit) - - - 113,298 (21,646) 95,097 28,395 (23,227) - 43,282 - - 235,199

Total expenses 13,721,278 8,441,292 22,162,570 4,778,704 2,051,083 2,813,233 5,641,318 1,131,412 262,399 3,124,518 26,795 (13,174,650)

28,817,382

Increase (decrease) in net assets from operating activities (2,062,549 (2,251,202 133,251 (236,058 189,611 288,928 71,445 (3,975 18,042 (26,795 -
) ) ) ) )
(188,653) (1,816,753)
Non-operating changes in net assets
Intercompany interest income (expense) 111,131 - 111,131 (59,857 (73,479 (146,728 285,891 (100,928 - (63,864 47,834 - -
) ) ) ) )
Investment return 4,876 1,696 6,572 - - - - - - - - - 6,572
Foreign exchange gain (loss) (358,817) (102,083) 260,287 (1,310,228) (227,673) 1,129 -
(842) (357,975) (41,864) (27,595) (16,931) (1,823,775)

INCREASE (DECREASE) IN NET ASSETS (73,488) (2,418,828) (2,492,316) (28,689) (49,250) (1,267,345) 532,955 (257,156) (2,846) (73,417) 4,108 - (3,633,956)

Net assets, beginning of year 12,491,624 5,126,580 17,618,204 (610,232) (1,130,425) (1,773,511) 1,578,955 (796,012) (18,107) (304,537) (49,175) - 14,515,160

Net assets, end of year $ $ $ $ (638,921) $ $ $ $ $ (20,953) $ (377,954) $ (45,067) $ - $

12,418,136 2,707,752 15,125,888 (1,179,675) (3,040,856) 2,111,910 (1,053,168) 10,881,204

30
 World Bicycle Relief, NFP and its Subsidiaries

CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

Year ended December 31, 2021

International Philanthropic
WBR NFP Philanthropic Group Zambia Kenya Zimbabwe Mauritius Malawi South Africa Colombia Spain Eliminations Consolidated
Revenue and support
Contributions and grants $ $ $ $ 126,240 $ 151,200 $ 364,535 $ 51,883 $ 203,040 $ 179,447 $ 928,234 $ - $ $
12,250,988 6,682,831 18,933,819 (2,595,235) 18,343,163
In-kind contributions 1,052,032 - 1,052,032 - - - - - - - - - 1,052,032
Bicycle social enterprise program - - - 3,938,740 794,619 3,940,215 3,162,198 1,996,271 - 1,198,797 - 10,817,744
(4,213,096)
Other income 86,344 52,173 138,517 - 379 - 505,704 4,307 - 85,028 - (505,704) 228,231

Total revenue and support 13,389,364 6,735,004 20,124,368 4,064,980 946,198 4,304,750 3,719,785 2,203,618 179,447 2,212,059 - (7,314,035) 30,441,170

Expenses
Program services
Social enterprise 1,349,127 15,697 1,364,824 3,916,727 1,073,464 3,754,701 3,917,259 2,102,023 - 1,175,817 28,881 (970,680) 16,363,016
Mobilized communities 5,443,640 2,826,430 8,270,070 - - - - - 183,583 935,331 - (6,343,355)

3,045,629 Total program services 6,792,767 2,842,127 9,634,894 3,916,727 1,073,464 3,754,701 3,917,259 2,102,023 183,583 2,111,148 28,881 (7,314,035) 19,408,645

Supporting services
Management and administrative 1,221,348 124,652 1,346,000 - - - - - - - - - 1,346,000
Fundraising 2,407,718 1,157,709 3,565,427 - - - - - - - - - 3,565,427

Total supporting services 3,629,066 1,282,361 4,911,427 - - - - - - - - - 4,911,427

Total expenses before tax expense (benefit) 10,421,833 4,124,488 14,546,321 3,916,727 1,073,464 3,754,701 3,917,259 2,102,023 183,583 2,111,148 28,881 (7,314,035)

24,320,072

Tax expense (benefit) - - - 82,868 (63,829) 167,928 6,380 32,693 - 24,911 - - 250,951

Total expenses 10,421,833 4,124,488 14,546,321 3,999,595 1,009,635 3,922,629 3,923,639 2,134,716 183,583 2,136,059 28,881 (7,314,035)

24,571,023

Increase (decrease) in net assets from operating activities 2,967,531 2,610,441 5,577,972 65,385 (63,437 382,121 (203,779 68,902 (4,136 76,000 (28,881 - 5,870,147
) ) ) )
Non-operating changes in net assets
Intercompany interest income (expense) 119,181 - 119,181 (40,198 (69,113 (117,104 215,923 (77,249 - (36,386 4,946 - -
) ) ) ) )
Investment return (1,546 (16,090 - - - - - - - - -
) )
(14,544) (16,090)
Foreign exchange gain (loss) (122,995) 239,866 (419,620) 1,704 1,396 -
(2,560) (120,435) (51,355) (115,207) (139,849) (25,240) (631,300)

INCREASE (DECREASE) IN NET ASSETS 3,069,608 2,488,460 5,558,068 265,053 (183,905) (154,603) 13,848 (123,554) (2,740) (100,235) (49,175) - 5,222,757

Net assets, beginning of year 9,422,016 2,638,120 12,060,136 (875,285) (946,520) (1,618,908) 1,565,107 (672,458) (15,367) (204,302) - - 9,292,403

Net assets, end of year $ $ $ $ (610,232) $ $ $ $ (796,012) $ (18,107) $ (304,537) $ (49,175) $ - $

12,491,624 5,126,580 17,618,204 (1,130,425) (1,773,511) 1,578,955 14,515,160

31