THE BOTTOM LINE, INC. FINANCIAL STATEMENTS FOR THE …

1 THE BOTTOM line , INC. FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 (Restated) (WITH INDEPENDENT AUDITORS REPORT THEREON) THE BOTTOM line , INC. FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 (Restated) TABLE OF CONTENTS INDEPENDENT AUDITORS REPORT 1-2 FINANCIAL STATEMENTS : STATEMENTS of FINANCIAL Position 3 STATEMENTS of Activities 4 STATEMENTS of Cash Flows 5 STATEMENTS of Functional Expenses 6-7 Notes to FINANCIAL STATEMENTS 8-14 Bruce D. Norling, CPA, 1 410 Boston Post Road, Suite #24 Sudbury, MA 01776 (978) 443-9114 INDEPENDENT AUDITORS REPORT To the Board of Directors of The BOTTOM line , Inc.

2 Boston, Massachusetts We have audited the accompanying FINANCIAL STATEMENTS of The BOTTOM line , Inc. (a nonprofit organization), which comprise the STATEMENTS of FINANCIAL position as of June 30, 2016 and 2015, and the related STATEMENTS of activities, functional expenses, and cash flows for the years then ended, and the related notes to the FINANCIAL STATEMENTS . Management s Responsibility for the FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these FINANCIAL STATEMENTS in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of FINANCIAL STATEMENTS that are free from material misstatement, whether due to fraud or error.

3 Auditor s Responsibility Our responsibility is to express an opinion on these FINANCIAL STATEMENTS based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the FINANCIAL STATEMENTS are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the FINANCIAL STATEMENTS . The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the FINANCIAL STATEMENTS , whether due to fraud or error.

4 In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the FINANCIAL STATEMENTS 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 the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the FINANCIAL STATEMENTS .

5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 2 Opinion In our opinion, the FINANCIAL STATEMENTS referred to above present fairly, in all material respects, the FINANCIAL position of The BOTTOM line , Inc. as of June 30, 2016 and 2015, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis-of-Matter Regarding Restatement of June 30, 2015 As more fully described in Note 10, subsequent to the issuance of The BOTTOM line Inc.

6 S 2015 FINANCIAL STATEMENTS , we became aware that the 2015 FINANCIAL STATEMENTS reflected incorrect assets, liabilities, revenue, expense, and net assets. In our original report, we issued an unqualified opinion, and our opinion on the restated FINANCIAL STATEMENTS remains unqualified. Bruce D. Norling, CPA, D. Norling, CPA, D. Norling, CPA, D. Norling, CPA, December 12, 201620152016(Restated)CURRENT ASSETSCash and Cash Equivalents4,202,966$ 2,884,939$ Contributions Receivable2,932,571 2,772,440 Prepaid Expenses108,340 71,393 Total Current Assets7,243,877 5,728,772 PROPERTY AND EQUIPMENTF urniture and Equipment585,033 523,218 Construction in Progress25,200 - Leasehold Improvements116,295 94,704 Total Property and Equipment726,528 617,922 Less.

7 Accumulated Depreciation(466,375) (398,004) Total Property and Equipment, Net260,153 219,918 INTANGIBLESD atabase and Website380,245 141,563 Less: Accumulated Amortization(147,674) (141,563) Total Intangibles, Net232,571 - OTHER ASSETSD eposits58,224 58,224 Contributions Receivable, Long-Term, Net426,509 946,881 Lease Acquistion Costs, Net167 2,167 Total Other Assets484,900 1,007,272 TOTAL ASSETS8,221,501$ 6,955,962$ CURRENT LIABILITIESA ccounts Payable169,132$ 57,092$ Accrued Expenses454,593 100,908 Total Current Liabilities623,725 158,000 LONG-TERM LIABILITIESD eferred Rent187,586 167.

8 925 Total Long-Term Liabilities187,586 167,925 TOTAL LIABILITIES811,311 325,925 NET ASSETSU nrestricted5,401,668 4,635,899 Temporarily Restricted2,008,522 1,994,138 Total Net Assets7,410,190 6,630,037 TOTAL LIABILITIES AND NET ASSETS8,221,501$ 6,955,962$ THE BOTTOM line , OF FINANCIAL POSITIONJUNE 30, 2016 AND 2015 (Restated)LIABILITIES AND NET ASSETSASSETSThe accompanying notes are an integral part of these FINANCIAL Temporarily UnrestrictedRestrictedTotalUnrestrictedR estrictedTotalREVENUES AND OTHER SUPPORTC ontributions7,350,509$ 863,439$ 8,213,948$ 5,323,460 150,000 5,473,460 Scholarship Contributions- 126,616 126,616 - 389,000 389,000 Program Revenue322,131 - 322,131 272,100 - 272.

9 100 In-Kind contributions- - - 12,865 - 12,865 Special EventsRevenue2,368,786 - 2,368,786 2,106,532 - 2,106,532 Direct Expenses of Special Events(348,229) - (348,229) (487,677) - (487,677) Special Events, Net2,020,557 - 2,020,557 1,618,855 - 1,618,855 Interest and Other Income3,587 3,587 (663) (663) Net Assets Released from Restriction975,671 (975,671) - 784,897 (784,897) - Total Revenue and Support10,672,455 14,384 10,686,839 8,011,514 (245,897)

10 7,765,617 EXPENSESP rogram Services7,260,642 - 7,260,642 5,659,046 - 5,659,046 Administration859,025 - 859,025 676,312 - 676,312 Fundraising1,787,019 - 1,787,019 999,558 - 999,558 Total Expenses9,906,686 - 9,906,686 7,334,916 - 7,334,916 CHANGES IN NET ASSETS765,769 14,384 780,153 676,598 (245,897) 430,701 NET ASSETS, BEGINNING OF YEAR4,635,899 1,994,138 6,630,037 3,959,301 2,240,035 6,199,336 NET ASSETS, END OF YEAR5,401,668$ 2,008,522$ 7,410,190$ 4,635,899 1,994,138 6,630,037 THE BOTTOM line , OF ACTIVITIES FOR THE YEARS ENDED JUNE 30, 2016 AND 2015 (Restated)2016(Restated)The accompanying notes are an integral part of these FINANCIAL (Restated)