Early Learning Property Management Inc.

“Net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. Permanently restricted net assets represent a $2,140,000 contribution that was initially provided by a granting agency to be used, along with other funds, to renovate a child care center. Upon the completion of the child care center the facility was subleased to a child development program in a direct financing lease transaction. In accordance with the donor stipulation, a portion of each lease payment is to be set aside to fund a permanent endowment of $2,140,000. In addition, the donor has stipulated that the income from the endowment is expendable beginning in 2025, which represents 20 years from the date the lease transaction was entered into, to support capital expenditures for the organization's metropolitan atlanta child development centers and may be utilized as collateral should the need arise to obtain a bridge loan for the completion of any the organization's projects. During the year ended december 31, 2016, all amounts under the direct financing lease were paid in full and the proceeds were utilized to fund the $2,140,000 permanent endowment. During the year ended december 31, 2017, the granting agency approved the re-designation of $250,000 of the endowment from permanently restricted to unrestricted to fund capital expenditures for the gwinnett development center, which reduced the corpus of the endowment to $1,890,000. The percentage reported for permanent endowments includes amounts that must be maintained in perpetuity as well as accumulated earnings on such amounts that have not yet been appropriated for expenditure.”

“The organization is a nonprofit organization as described in section 501(c)(3) of the internal revenue code, as amended, and is exempt from federal and state income taxes; accordingly, no provision has been made for income taxes. Management believes the organization continues to satisfy the requirements of a tax-exempt organization at december 31, 2023. Management has evaluated all other tax positions that could have a significant effect on the financial statements and determined the organization had no uncertain income tax positions at december 31, 2023.”