Backpack Project Inc.

“| Other Expenses:, Amount:| Distribution of inventory to partner shelters., $60465| Funding programs at subsidiary chapters., $9259| Corporate registration and filing fees related to 2022., $160| Employee gas reimbursement for travel to packing events and transportation of goods., $539| Miscellaneous Business Expenditures, $485|”

“| Explanation:, Amount:| The existence of this significant write-down of net assets is attributable to the change in estimate of the carrying value of our inventory. This change in value is attributable dating back to FY2020 in which the reconciliation of inventory at year end did not occur in the amount required to bring Net Assets to fair value. Over the course of our activity since our organization's inception the fair market value of individual inventory items has also changed. While this category of error was also addressed as a write-down in our 2019 and 2022 informational filings current management estimated the 2023 ending balance was still overstated by 48571., $-48571|”

“| Explanation:, BOYAmount:, EOYAmount:| Other asset balance is comprised of inventory that will be distributed in accordance with our mission to ease the burden of homelessness., $49215, $15122|”