Lanterns Global Inc.

“| Employee:, Relationship:, Employee:| Megan Moreno, Family Relationship, Saul Moreno|”

“Due to timing constraints and the need to file the Form 990 as promptly as possible to meet compliance deadlines the organization was unable to circulate the return to the governing body prior to submission. A complete copy will be provided to all board members immediately following the filing for their review and records.”

“| Name of the Person:, The process used to establish compensation of the person who served in:|, The year in which this process was last undertaken:| Saul Moreno, As a small nonprofit organization with limited funding we are not able to fully or competitively compensate our directors for the many hours of time and leadership they devote to the organization. However to acknowledge their dedication and ensure some level of support the board with guidance from our CFO a licensed CPA reviewed our budget and approved a modest stipend. This stipend reflects what the organization can reasonably afford while continuing to meet its program and financial obligations. The decision was reviewed agreed upon by independent board members and documented in our board meeting minutes., 2022| Megan Moreno, As a small nonprofit organization with limited funding we are not able to fully or competitively compensate our directors for the many hours of time and leadership they devote to the organization. However to acknowledge their dedication and ensure some level of support the board with guidance from our CFO a licensed CPA reviewed our budget and approved a modest stipend. This stipend reflects what the organization can reasonably afford while continuing to meet its program and financial obligations. The decision was reviewed agreed upon by independent board members and documented in our board meeting minutes., 2022|”

“Documents available upon request to the organization via email or in writing.”

“| Explanation:| Timing of Board Review of Form 990: Due to the timing of the filing deadline and limited staff capacity the Form 990 was submitted before full board review. However a complete copy will be provided to all board members for their review and documentation immediately following submission.”

“| Explanation:| Review Process for Form 990: As a small organization with limited administrative resources the Form 990 is prepared by the Executive Director and reviewed internally before submission. A formal board review process is planned for future filings to enhance oversight.”

“| Explanation:| Preparation of Form 990 Explanation: Preparation of Form 990 by Executive Director: The Form 990 was prepared by the Executive Director due to the organizations limited staffing and resources. While not ideal this approach ensures timely filing and will be improved upon with the development of more robust review procedures.”

“| Explanation:| Conflict of Interest Monitoring: The organization is developing internal systems to regularly monitor and enforce its Conflict of Interest Policy. Currently disclosures are gathered informally. A checklist and review process are being implemented for future board meetings to ensure compliance.”

“| Explanation:| Availability of Governing Documents and Financial Statements: Governing documents and Form 990 are available to the public upon written request to the organizations main mailing address. Due to the organizations small size documents are not currently posted online.”

“| Explanation:| Document Retention and Destruction Policy: The organization adopted a formal Document Retention and Destruction Policy to ensure compliance with federal recordkeeping requirements. A copy of this policy is maintained and followed by leadership.”

“| Explanation:| Annual Disclosure of Conflicts of Interest Future Implementation: The organization is in the process of formalizing a Conflict of Interest disclosure process. Beginning with the next fiscal year all officers directors and key personnel will be required to complete an annual disclosure form identifying any potential conflicts. These disclosures will be reviewed and documented internally as part of the organizations compliance and governance practices.”

“| Explanation:| Wage Payment Spanning Prior Fiscal Period: A compensation payment of $6711 made in October 2023 reflects hours worked by program staff during the final payroll period of September 2023. Due to payroll timing the payment was disbursed after year-end and is reported in this tax period under the organizations cash basis accounting method. This payment was for services fully rendered in the prior fiscal year but processed and paid within the current reporting year.”

“| Explanation:| Reasonable Cause for Late Filing: The organization submitted Form 8868 Application for Automatic Extension of Time to File an Exempt Organization Return. The extension was granted and the IRS approved a new filing deadline of August 15 2025. Due to unforeseen personal and operational circumstances-specifically the illness of the Executive Directors child and limited administrative staffing-the return was submitted five business days past the extended deadline. As a small nonprofit we worked diligently to complete the return as quickly and accurately as possible under the circumstances. We respectfully request that this be considered reasonable cause for the slight delay in filing.”

“| Description:, Explanation:, Amount:| Year-End Net Asset Reconciliation Adjustment, A one-time adjustment of $9078 has been recorded under "Other Changes in Net Assets" to reconcile internal bookkeeping records with the year-end net asset balance. This entry reflects a non-material correction identified during the reconciliation process and does not represent a cash transaction programmatic activity or donor-related income. The adjustment ensures accurate financial reporting and alignment of internal ledgers., $-9078|”

“| Explanation:| Adjustment to Align Net Assets: During internal reconciliation of financial records the organization identified a $9078 variance in net asset reporting. This adjustment was made to align the financial summary with internal accounting records for accuracy. No funds were misused or misappropriated.”

“| Explanation:| Use of Volunteers: The organization relies on a group of dedicated volunteers who contribute to events program delivery and administrative support. Their efforts are not compensated and are not reflected in the financials but they are integral to our success.”