9 ,7~lIolT ; . ~3 / ~~: o ('I 7 PLANET AlD, INC. FINANCIAL STATEMENTS AND SUPPLEMENT ARY INFORMATION FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005 WITH INDEPENDENT AUDITORS' REPORT PLANET AID, INC. () Table of Contents Page Number Independent Auditors' Report 1 Financial Statements: Statements of Financial Position 2 Statements of Activities 3 Statements of Functional Expenses 4-5 Statements of Cash Flows 6-7 Notes to Financial Statements 8 - 15 Supplementary Information: Independent Auditors' Report on Supplementary Information Supplemental Schedules of Intemational Aid Contributions 16 17 - 20 &CCR CARLIN. C HARRON & ROSEN. llP O:u ified Public Accounlarl(S and 8u";~Advi:w~ 60 Si al e Street I BOSlon, MA 0 2109 I 6 17.226.7000 I 617.371.2525 fi~ I W'MV.ccrgroup.com INDEPENDENT AUDITORS' REPORT To the Board of Directors Planet Aid, Inc. Holliston, Massachusetts We have audited the accompanying statements of financial position of Planet Aid, Inc. (a non-profit organization) as of December 31, 2006 and 2005, and the related statements of activities, functional expenses, and cash flows for the years then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Planet Aid, Inc. as of December 31, 2006 and 2005, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Boston, Massachusetts April 30, 2007 -1- BOSTO N GL ASTONBURY PROVIDENCE Carlin, Charron & Rosen. LLP: CCR Corporate Revita lization, LlC: CCR Cost Recovery Services. LLC: CCR Retirement Planning Associates. LLC: CCR Technology Services: CCR Wealth Management, LLC A Foundi ng Member of the leading Edge Alliance W ES TBOROUG H p, c, PLANET AID, INC. (: EI Statements of Financial Position December 31, 2006 and 2005 / "'J' <. 8' / '., "0 Assets 2006 432,158 1,176,815 595,248 25 1,094 1,713,257 2005 Cash and cash equivalents Restricted cash Accounts receivable, net Inventories Notes receivable Food for international distribution Prepaid expenses and other current assets Property and equipment $ 124,934 2,838,051 290,697 48 9,832 306,413 192,756 821,130 25,346 109,747 1,954,615 Total assets $ 7,131,557 $ 4,1 90,536 $ Liabilities and Net Assets Liabilities Demand notes payable Accounts payable Accrued expenses and other current liabilities Customer deposits Deferred grant revenue Notes payable Capital lease obligations Unrestricted net assets Total liabilities and net assets See notes to financial statements -2- $ 6,876 355,881 379,292 235,276 2,707,957 1,7 18,871 88,492 5,492,645 $ 368,184 284,272 253,234 50,000 1,233 ,835 917,503 129,491 3,236,519 1,638,912 954,017 $ 7,131,557 $ 4,1 90,536 0 7 PLANET AID, INC. Statements of Activities For the Years Ended December 31, 2006 and 2005 () 2005 2006 () 7' Revenues and support: Contributions and sales of used clothing Other contributions Grants Interest and other revenue Total revenues and support $1 6,403,794 748,338 2,895,552 42,856 20,090,540 $ 11,693,999 542,346 1,906,76 1 7,52 1 14,150,627 12,678,324 8,777,65 1 2,727,219 2,696,954 5,424,173 2,364,212 1,906,761 4,270,973 Total program services 18, 102,497 13,048,624 Support services: General and administrative Fundraising Total support services 1,26 1,068 42,080 1,303,148 916,086 41,084 957,170 Total expenses 19,405,645 14,005,794 Change in unrestricted net assets 684,895 144,833 Unrestricted net assets - beginning 954,017 809, 184 Expenses: Program services: Clothing collection International aid provided from : Clothing collection programs Grants Unrestricted net assets - ending $ 1,638,912 See notes to financial statements -3- $ 954,017 PLANET AID, INC. Statement of Functional Expenses For the Year Ended December 31, 2006 Clothing Collection Contributions Clothing collection Payroll Sales commissions Occupancy Purchase of used clothing Depreciation and amortization Insurance Shipping and bailing Payroll taxes Contribution facilitation Repairs and maintenance Professional Contract labor Travel Office Interest Telephone Miscellaneous Bad debts Bank charges Advertising Social programs Foreign currency gains Total expenses $ 5,318,755 2,985,363 697,375 682,871 665,512 471 ,880 320,540 301,172 277,190 265,475 28,975 242,326 36,540 94,717 129,472 141,219 608 International Aid Total Program Services $ 5,206,681 $ 5,206,681 5,318,755 2,998,893 853 ,305 703,538 665,512 471,880 320,540 341,911 277,190 13,530 155,930 20,667 40,739 3,346 865 491 17,759 309 Total Support Services $ $ $ 354,647 $ ) 8,102,497 24,923 $ 379,570 39,172 39,172 15,000 23 ,607 15,000 23,607 32,656 271,697 4,815 181 ,954 32,656 271,697 4,815 181 ,954 12,500 133 ,708 73 ,244 32,000 17,763 24,770 33,872 26,820 12,500 1,533 1,932 132,175 71 ,312 32,000 16,571 24,770 33,872 26,820 309 18,334 6,105 (96,855) 6,105 (96,855) $ 5,424,173 Fundraising 266,173 82,883 242,326 39,886 95,582 129,472 141,710 18,367 698 53,908 18,334 $ 12,678,324 General and Administrative 1,261 ,068 1, 192 $ 42,080 $ 1,303,148 Total Expenses $ 5,206,681 5,318,755 3,378,463 853,305 742,710 665 ,512 486,880 344,147 341,911 309,846 271,697 270,988 264,837 254,826 173,594 168,826 161,472 159,473 43,137 33,872 27,129 18,334 6,105 (96,855) $ 19,405,645 See notes to financial statements -4- --J G 0 f'.) \.. :~;: f~) "-, f[; GO ]') PLANET AID, INC. Statement of Functional Expenses For the Year Ended December 31, 2005 Clothing Collection Contributions Clothing collection Payroll Occupancy Sal es commissions Depreciation and amortization Insurance Shipping and bailing Professional Payroll taxes Contract labor Repairs and maintenance Contribution facilitation Interest Purchase of used clothing Travel Telephone Office Miscellaneous Foreign currency losses Bank charges Advertising Social programs Loss on sale of property and equipment Total expenses $ 3,932,635 2,06 1,562 55 5,781 502,462 307,890 254,596 199,844 19,587 191,858 160,890 193, 184 109,160 114, \09 23,011 87,55 9 45,299 International Aid Total Program Services $ 3,982,547 $ 3,982,547 3,932,635 2,068,285 569,423 583,762 310,26 1 254,5 96 23 8,738 89,942 19 1,858 160,890 193,230 6,723 13,642 81,300 2,37 1 38,894 70,355 46 1,78 1 350 2,29 1 15,293 42,453 1,663 11,264 72 $ 4,270,973 Fundraising Total Support Services $ $ $ $ 13,048,624 303,496 36,834 303,496 36,834 6,763 20,900 6,763 20,900 146,611 30,350 3 146,611 30,350 39,000 5, 187 148,669 8,34 1 1,6 10 27 1 200 86,495 11,902 45,572 31,140 39,000 5,187 148,669 8,338 109,1 60 114,109 24,792 87,909 47,590 15,293 42,453 1,663 18, 152 11,264 72 18,1 52 $ 8,777,651 General and Administrative 86,495 10,292 45,3 01 30,940 35,910 $ 916,086 35,91 0 $ 4 1,084 $ 957, 170 Total Expenses $ 3,982,547 3,932,635 2,37 1,78 1 606,257 583,762 3 17,024 275,496 238,73 8 236,553 222,208 199,890 198,4 17 148,669 117,501 114,109 111 ,287 99,8 11 93 ,162 46,43 3 42,45 3 37,573 18, 152 1I ,264 72 $ 14,005 ,794 See notes to financial statements -5- -.J () 0 i\) '~ t:~; r·) . .~ {fl O gJ> " h C:f PLANET AID, INC. () ';:~ Statements of Cash Flows For the Years Ended December 31, 2006 and 2005 ~~' ~j " :~;' 0 2006 Cash flows from operating activities Change in net assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization Loss on sale of property and equipment Change in operating assets and liabilities: Accounts receivable, net Inventories Notes receivable Food for international distribution Prepaid expenses and other current assets Accounts payable Accrued expenses and other current liabilities Customer deposits Deferred grant revenue Net cash provided by operating activities $ 684,895 2005 $ 486,880 144,833 317,024 72 (288,835) (58,338) 3,233,820 25,346 (15,187) 71,609 126,058 185,276 (2,651,825) 1,799,699 (104,118) (704) 2,166,120 173,417 (15,242) 27,962 13,306 11,715 (1,876,553) 857,832 (1,332,390) (l,332,390) (919,035) 9,000 (910,035) (361,308) 963,490 (200,048) (40,999) 361,135 111,301 713,205 (94,072) (111,271) 619,163 Increase in cash, cash equivalents and restricted cash 828,444 566,960 Cash, cash equivalents and restricted cash - beginning 780,529 213,569 Cash flows from investing activities Purchase of property and equipment Proceeds fyom sale of property and equipment Net cash used in investing activities Cash flows from financing activities Change in demand notes payable Proceeds from long-term debt Payments on long-term debt Payments on capital lease obligations Net cash provided by financing activities Cash, cash equivalents and restricted cash - ending $ 1,608,973 $ 780,529 Continued-- -6- 0 '7 PLANET AID, INC. Statements of Cash Flows (Continued) For the Years Ended December 31, 2006 and 2005 o 2006 2005 Supplemental cash flow disclosures: Cash paid during the year for: Interest $ 168,826 $ 117,501 Summary of non-cash transactions: Soy and wheat products received from USDA grants $ 4,273,753 $ 1,651,346 Sale of soy and wheat products in exchange for notes receivable $ 4,125,947 $ 1,626,000 Purchase of property and equipment though assumption of long-term debt $ Purchase of property and equipment through assumption of capital lease obligations $ See notes to financial statements -7- 37,926 $ 7,925 $ 9,990 o '." PLANET AID, INC. Notes to Financial Statements For the Years Ended December 31,2006 and 2005 ./ 1. Nature of Operations Planet Aid, Inc. (the Organization) supports emergency and disaster relief programs for victims of hunger, war, and natural disaster; development projects in third world countries; projects aimed at enhancing the living conditions of the poorest of the world's populations; and protection of natural habitat through the recycling of used clothes. Most of the Organization's revenues are derived from used clothing contributions deposited in collection boxes located throughout Eastern United States. The Organization also initiated collection operations in California at the end of 2006. Most of the clothing is sold to international retailers and wholesalers of used clothing. The Organization also sold used clothing through two thrift shops located in Boston and Cambridge, Massachusetts. The thrift shops were closed in 2005. 2. Summary of Significant Accounting Policies Method ofAccounting The financial statements of the Organization have been prepared on the accrual method of accounting. Accordingly, assets are recorded when the Organization obtains the rights of ownership or is entitled to claims for receipt and liabilities are recorded when the obligations are incurred. Financial Statement Presentation The Organization's resources are classified for accounting and reporting purposes into net asset categories according to externally (donor) imposed restrictions as follows: Umestricted net assets consist of assets, public support, and program revenues which are available and used for operations and programs. Contributions are considered available for umestricted use unless specifically restricted by the donor. Temporarily restricted net assets include funds with donor-imposed restrictions which stipulate that the Organization expend the assets as specified and are satisfied either by the passage of time or by actions of the Organization. Resources of this nature originate from gifts, grants, bequests, contracts, and investment income from restricted assets. Permanently restricted net assets include resources which have a permanent donor-imposed restriction which stipulates that the assets are to be maintained permanently, but permits the Organization to expend part or all of the income derived from the donated assets. The organization has no temporarily or permanently restricted net assets at December 31, 2006 and 2005 . Continued -- -8- PLANET AID, INC. Notes to Financial Statements For the Years Ended December 31, 2006 and 2005 " / 2 2. Summary of Significant Accouuting Policies (Continued) Use ofEstimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, Cash , Cash Equivalents and Restricted Cash The Organization considers highly liquid investments with a maturity of 90 days or less when purchased to be cash equivalents. Restricted cash includes $202,632 of Mozambican Meticals and $974,183 Malawi Kwachas, which are segregated and restricted for use in accordance with the USDA grant agreements. The Organization maintains its cash at financial institutions in amounts which at times may exceed federally insured limits. The Organization believes it is not exposed to any significant risk on cash and cash equivalents. Accounts Receivable, Net The Organization provides an allowance for doubtful accounts equal to estimated bad debt losses. In determining this allowance, objective evidence that a single receivable is uncollectible as well as a historical pattern of collections of accounts receivable that indicate that the entire face amount of a portfolio of accounts receivable may not be collectible is considered at each balance sheet date. The allowance for doubtful accounts totaled $30,000 and $11,522 at December 31,2006 and 2005, respectively. Inventories/Food for Internatiollal Distribution Inventories, which consist primarily of used clothing, and food for international distribution are valued at the lesser of fair market value on the date received or net realizable value at year-end. Used clothing purchased for resale is valued at the lower of cost or market value, with cost determined on the first-in, first-out method. Food for international distribution is restricted for use in accordance with the USDA grant agreement. Property and Equipment Property and equipment are stated at cost. Major additions and betterments are charged to the property accounts while replacements, maintenance, and repairs which do not improve or extend the lives of the respective assets are expensed in the year incurred. Donated property and equipment are recorded at fair value at the time of donation. Depreciation is computed using the straight-line method over the assets' estimated useful lives of3 to 10 years. Deferred Grant Revenue Deferred grant revenue represents amounts received from grantor agencies in excess of amounts expended for programs that extend beyond the end of the Organization'S fiscal year. The deferred grant revenue will be recognized when expenditures are made in accordance with the grant agreement. Continued --9- o C: '", PLANET AID, INC. Notes to Financial Statements For the Years Ended December 31, 2006 and 2005 2: o 2. Summary of Significant Accounting Policies (Continued) o "7' Contribution Revenue Contributions, including used clothing and unconditional promises to give, are recognized at estimated fair market value at the time of receipt or date of pledge. Contributions subject to donor-imposed stipulations that are met in the same reporting period are reported as unrestricted support. Conditional promises to give are not recognized until they become unconditional, that is, when the conditions on which they depend are substantially met. Gifts of land, building, and equipment are reported as unrestricted support unless explicit donor stipUlations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. In-Kind Contributions The Organization records various types of in-kind support including contributed facilities, professional services, and materials. Contributed professional services are recognized if the services received (a) create or enhance long-lived assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. Contributions of tangible assets are recognized at fair market value when received. The amounts that are reflected in the accompanying financial statements as in-kind support are offset by like amounts included in expenses. Grant Revenue Entitlement to cost reimbursement grants is based on the expenditure of funds and, therefore, revenue is recognized to the extent of grant expenditures. Entitlement to performance based grants is based on the attainment of specific performance goals and, therefore, revenue is recognized to the extent of performance achieved. Functional Allocation ofExpenses The Organization allocates its expenses on a functional basis among its various programs and support services. Expenses that can be identified with a specific program and support service are allocated directly according to their expenditure classification. Foreign Currency Transactions denominated in foreign currencies are translated to U.S. dollars using the actual exchange rates at the time of the transaction, while assets and liabilities are translated at the exchange rate in effect at the reporting date. The effect of changes in exchange rates between the designated functional currency and the currency in which a transaction is denominated is recorded as foreign currency gains (losses). Income Taxes The Organization is exempt from federal income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code. The Organization is also exempt from state income taxes. Continued --10- PLANET AID, INC. Notes to Financial Statements For the Years Ended December 31, 2006 and 2005 2. Summary of Significant Accounting Policies (Continued) ,o.... ", "/ Reclassification ofPrior Years For comparability, certain 2005 accounts have been reclassified to conform with the 2006 financial statement presentation. These reclassifications had no effect on the 2005 change in unrestricted net assets or unrestricted net assets as previously reported. 3. Related Party Transactions The Organization is a member of "The Federation for Associations connected to the International Humana People to People Movement'; (The Federation). The Federation, a not-for-profit membership organization established under the laws of Denmark and Switzerland, coordinates funds raised by its members with the needs of the numerous international aid programs connected with the Humana People to People Movement (HPP). The Organization is required to pay an annual membership fee equal to the greater of $100,000 or 6.5% of actual or budgeted contributions. The Organization contributed $2,579,951 and $2,289,131 to international aid programs through The Federation and paid The Federation $167,697 and $148,669 to facilitate these contributions in 2006 and 2005, respectively. In addition, the Organization paid The Federation $104,000 to facilitate the grant revenues in 2006. Of the contributions made through The Federation, $429,970 and $437,000 were contributed to programs run by The Federation in 2006 and 2005, respectively. The Organization's Chairman is a director of The Federation. The Organization's Chairman and a director are also directors of a non-profit entity from which the Organization purchased $665,483 and $69,702 of used clothing in 2006 and 2005, respectively. In addition, the Organization paid the related entity $47,025 and $41,000 for the use of conference facilities and related services in 2006 and 2005, respectively. The Organization's Chairman resigned his directorship position in the related non-profit entity in February 2006. One of the Organization's directors is also an employee of a non-profit organization that trains international volunteers for many of the same programs that the Organization supports. The entity received $26,245 and $36,000 in contributions and payments for services from the Organization in 2006 and 2005, respectively. Most of the directors, executives, and senior management ofthe Organization are part ofan informal association that supports common altruistic goals. Most of the directors, executives, and senior management of The Federation, the international aid programs supported by the Organization, and the Organization's sales broker are also part of this association. Sales commission expense charged by the brokerage firm totaled $697,375 and $502,462 in 2006 and 2005, respectively. Accounts payable and accrued expenses due to all related parties totaled $81 ,273 and $44,083 at December 31, 2006 and 2005, respectively. -11- PLANET AID, INC. Notes to Financial Statements For the Years Ended December 31, 2006 and 2005 / " 4. Property and Equipment Property and equipment consists of the following: Clothing collection containers Furniture, fixtures, and equipment Transportation equipment Less - accumulated depreciation and amOltization 2006 2005 $ 3,955,365 515,399 322,199 4,792,963 1,954,912 $ 2,838,05 I $ 2,733,487 428,526 260,634 3,422,647 1,468,032 $ 1,954,615 5. Demand Notes Payable Demand notes payable consist primarily of a line of credit from a commercial bank available up to a maximum of $400,000. The line is secured by all assets of the Organization. Interest is paid monthly at the bank's prime rate plus 1% per annum (925% at December 31,2006), The line is up for renewal in July 2007. In addition, the Organization has two lines of credit from a commercial bank available up to a combined maximum of $30,000, The lines are unsecured and have no scheduled expiration dates, Interest is paid monthly at the banks' prime rate plus I % per annum (925% at December 31, 2006). 6. Notes Payable The balance represents notes payable to commercial banks which are secured by all assets of the Organization. The notes are being repaid in monthly installments of $48,485 including interest accrued at rates ranging from 6.75% to 19.8% per annum. The notes mature at various dates through September 2011. The approximate aggregate annual principal payments on long-term debt are as follows: Year ending December 31, $ 461,739 482,310 454,049 316,582 4,191 $ 1.718.871 2007 2008 2009 2010 2011 -12- PLANET AID, INC. Notes to Financial Statements For the Years Ended December 31, 2006 and 2005 H ,/ o o 7. Capital Lease Obligations 7' Capital lease obligations are secured by leased equipment with an original cost of $1 87,220. The obligations are being repaid in monthly installments of $4,879 including interest at rates ranging from 14.65% to 21 % per annum. The obligations mature on various dates through August 2009. The aggregate future minimum payments due under all capital lease obligations are as follows: Year ending December 31 , 2007 2008 2009 Total minimum capital lease obligations Less amounts representing interest Present value of capital lease obligations Current portion of capital lease obligations Capital lease obligations, net of current portion $ 58,929 36,816 12,331 108,076 19,584 88,492 46,723 $ 41.769 8. Commitments and Contingencies The Organization rents facilities from third parties under tenant-at-will and operating lease agreements that expire at various dates through 2010. The Organization has the option to renew some of the leases for additional periods of one to five years. The Organization is required to pay monthly rent of $34,646 plus its pro-rata share of increases in property taxes and common area charges, where applicable. Occupancy expense related to these agreements totaled $742,710 and $606,257 in 2006 and 2005, respectively. The organization also rents vehicles and equipment under at-will and long-term operating lease agreements which expire at various dates through 2012. The agreements require the Organization to make minimum monthly payments of$18,929, plus mileage and other related charges. Minimum rent expense related to these agreements totaled $202,739 and $162,002 in 2006 and 2005, respectively. Continued -- -13- A Ci PLANET AID, INC. o Notes to Financial Statements For the Years Ended December 31 , 2006 and 2005 / :;2: o o 8. Commitments and Contingencies (Continued) Future minimum lease payments, including the Organization's estimated share of operating expenses and real estate taxes required under all noncancellable operating leases are as follows : Year ending December 31, 2007 2008 2009 2010 201 1 Thereafter Real Estate $ 342,714 257,621 177,522 54,307 $ 832.1 64 Other Total $ 203,509 185,877 162,942 123,346 80,961 16,342 $ 772.977 $ 546,223 443,498 340,464 177,653 80,961 16,342 $ 1 605.141 9. Other Contributions Revenue Other contributions revenue consists of in-kind and cash contributions as follows: Contributed use of land for collection boxes valued at $.01 per pound of clothes collected Contributions for Nicaragua Program Cash and other contributions 2006 2005 $ 714,033 28,145 6,1 60 $ 748 338 $ 535,195 7,151 $ 542,34(,! In addition, the Organization solicited and acted as an agent for $1,016,348 and $223,700 of grants from unrelated third parties for various intemational aid programs in 2006 and 2005, respectively. The agency transactions have not been included in the Organization's statements of activities. 10. Notes Receivable I Grant Revenues The Organization receives certain commodities under two grants from the United States Department of Agriculture (USDA). Through the Commodity Credit Corporation, the USDA will provide 9,000 metric tons of crude degummed soybean oil, 990 metric tons of bagged soy products and 30,000 metric tons of wheat to the Organization over three year periods. The crude degummed soybean oil and wheat are to be sold to local distributors and the proceeds used primarily to support HIV I AIDS education and awareness programs, the training of rural primary school teachers, and agricultural and nutrition training in Mozambique and Malawi. The bagged soy products will be used to support home-based .feeding and soy-based canteen programs in Mozambique. Continued --14- PLANET AlD, INC. () Notes to Financial Statements For the Years Ended December 31, 2006 and 2005 / / (:: 10. Notes Receivable f Grant Revenues (Continued) o 'i The Organization received 3,000 metric tons of crude degummed soybean oi l in 2006 and 2005, 252 and 77 metric tons of bagged soy products in 2006 and 2005, respectively, and 10,000 metric tons of wheat in 2006. The crude degummed soybean oil and wheat were sold to distributors in Mozambique and Malawi. Notes receivable represent the uncollected balances under these sales contracts. Management monitors the notes receivable for potential collection losses based upon the credit risk of specific balances, historical trends and other information. There is no reserve for uncollectible notes receivable at December 31,2006 and 2005. Deferred grant revenue represents grants received from the USDA expended for the programs. In excess of amounts The Organization also received a grant of $198,598 to cover general and administrative expenses not reimbursable under the USDA grant programs in 2006. 11. Significant Customers The Organization had two customers in 2006 and one customer m 2005 that purchased approximately 25% and 15%, respectively, of all contributed clothing. -15- p, 05CCR / CARLIN, CHARRON & ROSEN, LLP C enlfied Publi<; Accountant s ~nd Business Ad~i !orJ 60 State Stree t Boston. MA 02109 I 617.226.7000 i 617.371.2525 f~ ~ I www.ccrgroup.com / INDEPENDENT AUDITORS ' REPORT ON SUPPLEMENTARY INFORMATION To the Board of Directors Planet Aid, Inc. Holliston, Massachusetts Our report on our audits of the statements of financial position of Planet Aid, Inc. as of December 31, 2006 and 2005, and the related statements of activities, functional expenses, and cash flows for the years then ended appears on Page I , Those audits were conducted for the purpose of form ing an opinion on the basic financial statements taken as a whole. The Supplemental Schedules of International Aid Contributions for the years ended December 31 , 2006 and 2005 are presented for the purpose of additional analysis and are not a required part of the basic financial statements, Such information has not been SUbjected to the auditing procedures applied in the audits of the basic financial statements, and accordingly, we express no opinion on it Boston, Massachusetts April 30, 2007 -16B OSTON G LAST ONB URY P ROV I D ENC E Carli n. Charron & Rosen. LLP: CC R Corporate Revitalization . LLC: CCR COSt Recovery Services. LLC: CCR Retirement Planning Associates. LLC; CCR Technology Services: CCR Wealth Managemem. llC A Founding Member of Ihe Leading Edge Alliance W EST BORO UG H PLANET AID, INC. Supplemental Schedules ofintemational Aid Contributions For the Years Ended December 31, 2006 and 2005 / / Cash contributions: Associacao Mocambicana Para a Ajuda de Desenvolvimento de Povo para Povo: HIV and AIDS education programs, training of rural primary school teachers and agricultural training supported by proceeds from USDA grant Teacher Training College Chimoio ADPP 2nd Hand, Mozambique Total Control of the Epidemic Nhamatanda Total Associacao Mocambicana Para a Ajuda de Desenvolvimento de Povo para Povo: Development Aid from People to People in Malawi: HIV and AIDS education programs, training of rural primary school teachers and agricultural training supported by proceeds from USDA grant Ajuda de Desenvolvimento de Povo para Povo em Angola: Teacher Training College Caxito Children's Town Huambo Teacher Training College Zaire Teacher Training College Luanda Teacher Training College Cabinda Teacher Training College Benguela Teacher Training College Huambo Street Children School Luanda Children's Town Caxito Vocational School Cabinda Street Children School Benguela Hope Benguela Vocational School Benguela Tree Planting and Environment Tombwa Child Aid Cabinda Hope Cabinda Expansion of Used Clothing Operations Total Ajuda de Desenvolvimento de Povo para Povo em Angola: 2006 2005 $ 1,570,862 55,000 40,000 5,000 $ 1,475 ,603 5,000 1,670,862 1,485,603 5,000 772,085 102,470 93,963 92,34 1 84, 128 68,030 60,653 49,819 45 ,410 40,783 38,091 31,671 25,390 13,962 10,000 5,642 5,629 27,350 45 ,435 103,407 135,484 95,887 75,329 56,915 34,000 29,074 44,750 35,710 44,000 31,400 25,000 17,200 8,900 200,000 767,982 1,009,841 Continued-- -17- PLANET AID, INC. Supplemental Schedules of International Aid Contributions (Continued) For the Years Ended December 31 , 2006 and 2005 " H "2: (;< 2005 2006 Cash contributions (Continued): Development Aid from People to People in Zimbabwe: Child Aid Zimbabwe Hope Zimbabwe Ponesai Vanhu Technical College Communal to Commercial Fanner Zimbabwe Park Productions Total Control of the Epidemic Zimbabwe Fanners Club Zimbabwe Child Aid Kukwanisa Child Aid Rushinga Frontline Institute Total Development Aid from People to People in Zimbabwe $ 115,000 111,000 72 ,000 53,000 47,000 32,000 14,000 $ 96,000 53,000 68,000 42,000 68,000 43,000 20,000 444,000 390,000 The Federation for Associations connected to the Humana People to People Movement (The Federation): Murgwi Community Center, Zimbabwe Project Staff Clinic Total Control of the Epidemic Medical Headquarters Development Instructor Training Frontline Institute, Scholarship Program Total for The Federation for Associations connected to the Humana People to People Movement 169,000 126,970 39,000 187,926 · 50,000 91 ,000 19,000 4,074 334,970 352,000 Humana People to People South Africa: Total Control of the Epidemic South Africa Child Aid Dornkop HOPE Durban Total Humana People to People South Africa 157,000 80,000 35 ,000 272,000 25,000 90,000 45,000 160,000 Continued -- -18- Ct PLANET AID, INC. Supplemental Schedules ofIntemational Aid Contributions (Continued) For the Years Ended December 31,2006 and 2005 2006 2005 Cash contributions (Continued): Development Aid from People to People in Zambia: The Development Instructor Program HOPE Zambia Children's Town Malambanyama Child Aid Chibombo Child Aid & Environment Southern Province Child Aid Chililabombwe Total Development Aid from People to People in Zambia Humana People to People Congo Establishment of new projects $ 80,000 63,500 40,500 15,000 11,000 $ 109,221 22,000 210,000 131,221 110,000 Humana People to People India: Training Center for Global Development Community Development India HOPE India Development and Research Proj ect Office Total Humana People to People India Humana People to People Botswana: HOPE Botswana Child Aid Botswana Total Control of the Epidemic in Botswana Total Humana People to People Bostwana 70,000 30,000 20,000 120,000 37,000 30,000 67,000 87,232 28,767 115,999 63,000 63,000 Humana People to People China Yunnan Institute of Development and Child Aid, Wuding 95,000 85,000 Development Aid from People to People in Namibia Total Control of the Epidemic in Namibia 10,000 Other miscellaneous charities 2,854 Institute for International Cooperation and Development Development Instructor Training 1,418 20,000 Continued -- -19- PLANET AID, INC. Supplemental Schedules ofIntemational Aid Contributions (Continued) For the Years Ended December 31, 2006 and 2005 / 2006 2005 Cash Contributions (Continued): Kwazula-Natal Experimental College Development Instructor Training $ $ 20,000 National Association for the Advancement of Colored People - Victims of Hurricane Katrina 5,000 Habitat for Humanity Victims of Hurricane Katrina 5,000 4,927,170 3,793,665 Commission, handling fees, foreign currency loss and other expenses related to USDA grants 188,693 257,741 Soy contributions to Associacao Mocambican Para a Ajuda de Desenvolvimento de Povo para Povo 173,152 173,417 Computer equipment contributed to The Federation for Associations connected to the Humana People to People Movement and related member organizations 106,359 Program costs for Asociacion Planet Aid, Inc. Managua, Nicaragua 28,799 Total cash contributions In-Kind Contributions and Direct Expenses: 5,919 Program costs for Ong Ayuda Al Planeta Guatemala Clothing contributions to Development Aid from People to to People in Malawi Total in-kind contributions Total International Aid 15,096 497,003 477,308 $ 5,424,173 $ 4,270,973 See independent auditor's report on supplemental information -20- 25,135