ANTI-SLAVERY INTERNATIONAL, INC.

FINANCIAL STATEMENTS ANTI-SLAVERY INTERNATIONAL, INC. DBA FREE THE SLAVES FOR THE YEAR ENDED DECEMBER 31, 2009

CONTENTS PAGE NO. INDEPENDENT AUDITORS' REPORT 2 EXHIBIT A - Statement of Financial Position, as of December 31, 2009 3 EXHIBIT B - Statement of Activities and Change in Net Assets, for the Year Ended December 31, 2009 4 EXHIBIT C - Statement of Functional Expenses, for the Year Ended December 31, 2009 5-6 EXHIBIT D - Statement of Cash Flows, for the Year Ended December 31, 2009 7 NOTES TO FINANCIAL STATEMENTS 8-12 1

GELMAN, ROSENBERG & FREEDMAN CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT To the Board of Directors Anti-Slavery International, Inc. dba Free the Slaves Washington, D.C. We have audited the accompanying statement of financial position of Anti-Slavery International, Inc. dba Free the Slaves (FTS) as of December 31, 2009, and the related statements of activities and change in net assets, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of FTS' management. 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 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 audit provides 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 FTS as of December 31, 2009, and its change in net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. July 12, 2010 4550 MONTGOMERY AVENUE SUITE 650 NORTH BETHESDA, MARYLAND 20814 (301) 951-9090 FAX (301) 951-3570 WWW.GRFCPA.COM MEMBER OF CPAMERICA INTERNATIONAL, AN AFFILIATE OF HORWATH INTERNATIONAL MEMBER OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' PRIVATE COMPANIES PRACTICE SECTION 2

EXHIBIT A ANTI-SLAVERY INTERNATIONAL, INC. DBA FREE THE SLAVES STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2009 CURRENT ASSETS ASSETS Cash and cash equivalents $ 671,740 Advances and other assets 6,031 Pledges receivable (Note 2) 689,628 Inventory 20,074 Prepaid expenses 18,190 FIXED ASSETS Total current assets 1,405,663 Furniture and equipment, net of accumulated depreciation of $22,940 7,294 OTHER ASSETS Security deposit 8,447 Pledges receivable, net of current portion (Note 2) 200,000 Total other assets 208,447 TOTAL ASSETS $ 1,621,404 CURRENT LIABILITIES LIABILITIES AND NET ASSETS Accounts payable and accrued liabilities $ 28,493 Grants payable 72,000 Refundable advances 22,084 Amounts held for others (Note 6) 99,000 NET ASSETS Total current liabilities 221,577 Unrestricted 251,481 Temporarily restricted (Note 3) 1,148,346 Total net assets 1,399,827 TOTAL LIABILITIES AND NET ASSETS $ 1,621,404 See accompanying notes to financial statements. 3

EXHIBIT B ANTI-SLAVERY INTERNATIONAL, INC. DBA FREE THE SLAVES STATEMENT OF ACTIVITIES AND CHANGE IN NET ASSETS FOR THE YEAR ENDED DECEMBER 31, 2009 REVENUE Unrestricted Temporarily Restricted Total Contributions $ 728,820 $ 2,364,200 $ 3,093,020 Government grants 217,521-217,521 Honoraria 22,769-22,769 Product sales 12,015-12,015 Interest income 3,549-3,549 Contracts 11,560-11,560 Contributed services and materials 145,065-145,065 Events 81,119-81,119 Net assets released from donor restrictions (Note 3) 2,343,143 (2,343,143) - EXPENSES Total revenue 3,565,561 21,057 3,586,618 Program Services: Supporting Grassroots Anti-Slavery Groups 1,143,166-1,143,166 Raising Awareness 1,198,686-1,198,686 Research and Documentation 214,679-214,679 Educating Policymakers 130,281-130,281 Slave-Free Trade 6,366-6,366 Total program services 2,693,178-2,693,178 Supporting Services: Management and General 368,760-368,760 Fundraising 176,408-176,408 Total supporting services 545,168-545,168 Total expenses 3,238,346-3,238,346 Change in net assets before other items 327,215 21,057 348,272 OTHER ITEMS Transfer of net assets (Note 6) (137,518) 137,518 - Correction of an error (Note 6) - (325,000) (325,000) Total other items (137,518) (187,482) (325,000) Change in net assets 189,697 (166,425) 23,272 Net assets at beginning of year 61,784 1,314,771 1,376,555 NET ASSETS AT END OF YEAR $ 251,481 $ 1,148,346 $ 1,399,827 See accompanying notes to financial statements. 4

STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2009 Supporting Grassroots Anti-Slavery Groups Raising Awareness Research and Documentation Program Services Educating Policymakers Salaries and fringe benefits $ 153,027 $ 456,157 $ 72,975 $ 118,464 Grants 737,247-90,000 - Professional fees 100,313 122,589 759 2,500 Event production - 277,371 - - Travel 60,604 120,469 7,243 4,386 Video production - 105,133 - - Postage, printing and supplies 11,008 62,801 492 - Occupancy (Note 4) 53,380 7,070 1,496 4,190 Technology/communications 12,768 26,005 1,538 741 Subscriptions and publications - 6,071 27,026 - Training 4,581 9,800 10,000 - Bank fees 5,519 - - - Insurance 3,278-3,150 - Depreciation - 2,514 - - Other 1,441 2,706 - - TOTAL $ 1,143,166 $ 1,198,686 $ 214,679 $ 130,281 See accompanying notes to financial statements. 5

EXHIBIT C Supporting Services Slave-Free Trade Total Program Services Management and General Fundraising Total Supporting Services Total Expenses $ 5,330 $ 805,953 $ 157,095 $ 68,837 $ 225,932 $ 1,031,885-827,247 - - - 827,247-226,161 105,749 31,840 137,589 363,750-277,371-25,231 25,231 302,602 460 193,162 13,476 15,444 28,920 222,082-105,133-2,788 2,788 107,921-74,301 13,390 9,474 22,864 97,165 531 66,667 19,639 2,901 22,540 89,207-41,052 25,610 17,031 42,641 83,693-33,097 4,308 20 4,328 37,425-24,381 4,785-4,785 29,166-5,519 10,597 10 10,607 16,126-6,428 4,627-4,627 11,055-2,514 1,454-1,454 3,968 45 4,192 8,030 2,832 10,862 15,054 $ 6,366 $ 2,693,178 $ 368,760 $ 176,408 $ 545,168 $ 3,238,346 See accompanying notes to financial statements. 6

EXHIBIT D ANTI-SLAVERY INTERNATIONAL, INC. DBA FREE THE SLAVES STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2009 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 23,272 Adjustments to reconcile change in net assets to net cash used by operating activities: Depreciation 3,968 Loss on disposal of fixed assets 3,294 (Increase) decrease in: Advances and other assets 878 Pledges receivable (889,628) Inventory (20,074) Prepaid expenses (18,190) Security deposit (3,552) Increase (decrease) in: Accounts payable and accrued liabilities (17,386) Grants payable 72,000 Refundable advances 22,084 Amounts held for others 99,000 Net cash used by operating activities (724,334) Net decrease in cash and cash equivalents (724,334) Cash and cash equivalents at beginning of year 1,396,074 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 671,740 See accompanying notes to financial statements. 7

NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL INFORMATION Organization - Anti-Slavery International, Inc. dba Free the Slaves (FTS) is a non-profit, non-partisan organization, incorporated in the District of Columbia. FTS' mission is to end slavery worldwide. Programs - Supporting Grassroots Anti-Slavery Groups - FTS helps free people from slavery and helps them achieve sustainable freedom through supporting and working alongside grassroots antislavery groups in seven countries. Partnerships with these groups focus on information-sharing, networking, funding, communications technology, capacity building and the expansion of liberation and rehabilitation work. Raising Awareness - FTS increases public awareness of contemporary slavery and spurs action through media outreach, documentaries, multimedia education tools, speaking engagements, and curricula and organizing materials for school, community and faith-based groups. FTS sponsors the Freedom Awards, which honors anti-slavery heroes and makes available the world's largest freely available video library on modern slavery. Research and Documentation - FTS investigates and documents the extent and nature of slavery around the world, and which programs are most effective at fighting it. Educating Policymakers - FTS provides education materials to policymakers domestically and abroad in support of effective anti-slavery policies and programs. Slave-Free Trade - FTS works in partnership with consumers, businesses, governments, organized labor and other civil society groups to eradicate slavery from product supply chains. Recently issued accounting standards - In June 2009, the Financial Accounting Standards Board (FASB) issued FASB ASC 105, Generally Accepted Accounting Principles, which establishes the FASB Accounting Standards Codification as the sole source of authoritative generally accepted accounting principles. Pursuant to the provisions of FASB ASC 105, FTS has updated references to GAAP in its financial statements issued for the year ended December 31, 2009. The adoption of FASB ASC 105 did not impact FTS financial position or results of operations. Basis of presentation - The accompanying financial statements are presented on the accrual basis of accounting, and in accordance with FASB ASC 958, Not-for-Profit Entities. Cash and cash equivalents - FTS considers all cash and other highly liquid investments with initial maturities of three months or less to be cash equivalents. 8

NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL INFORMATION (Continued) Cash and cash equivalents (continued) - At times during the year, FTS maintains cash balances at financial institutions in excess of the Federal Deposit Insurance Corporation (FDIC) limits. Management believes the risk in these situations to be minimal. Fixed assets - Fixed assets in excess of $5,000 are capitalized and stated at cost. Fixed assets are depreciated on a straight-line basis over the estimated useful lives of the related assets, generally three to five years. Income taxes - FTS is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for income taxes has been made in the accompanying financial statements. FTS is not a private foundation. Uncertain tax positions - In June 2006, the Financial Accounting Standards Board (FASB) released FASB ASC 740-10, Income Taxes, that provides guidance for reporting uncertainty in income taxes. For the year ended December 31, 2009, FTS has documented its consideration of FASB ASC 740-10 and determined that no material uncertain tax positions qualify for either recognition or disclosure in the financial statements. Inventory - Inventory consists of publications, DVDs and clothing, which are recorded at the lower of cost or market value using the first-in, first-out method of inventory. Net asset classification - The net assets are reported in two self-balancing groups as follows: Unrestricted net assets include unrestricted revenue and contributions received without donor-imposed restrictions. These net assets are available for the operation of FTS and include both internally designated and undesignated resources. Temporarily restricted net assets include revenue and contributions subject to donorimposed stipulations that will be met by the actions of FTS and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities and Change in Net Assets as net assets released from restrictions. 9

NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GENERAL INFORMATION (Continued) Contributions and grants - Unrestricted and temporarily restricted contributions and grants are recorded as revenue in the year notification is received from the donor. Temporarily restricted contributions and grants are recognized as unrestricted support only to the extent of actual expenses incurred in compliance with the donor-imposed restrictions and satisfaction of time restrictions. Temporarily restricted contributions and grants received in excess of expenses incurred are shown as temporarily restricted net assets in the accompanying financial statements. Grants and support receivable represents amounts due from funding organizations for reimbursable expenses incurred in accordance with the grant agreements. Grant funding received in advance of incurring the related expenses is recorded as a refundable advance. Contributed services and materials - Contributed services and materials consist of professional services. Contributed services and materials are recorded at their fair market value as of the date of the gift. For the year ended December 31, 2009, total contributed services was $145,065. Use of estimates - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Functional allocation of expenses - The costs of providing the various programs and other activities have been summarized on a functional basis in the Statement of Activities and Change in Net Assets. Accordingly, certain costs have been allocated among the programs and supporting services benefited. 2. PLEDGES RECEIVABLE Pledges receivable represent unconditional promises to give by donors. Current pledges receivable are expected to be collected during the next fiscal year and are recorded at their net realizable value. For the year ended December 31, 2009, pledges receivable due in less than one-year are in the amount of $689,628 and pledges receivable due after twelve months are in the amount of $200,000. 10

NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 3. TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets consisted of the following at December 31, 2009: Supporting Grassroots Anti-Slavery Groups $ 915,898 Raising Awareness 138,382 Research and Documentation 17,798 Educating Policymakers 1,268 Capacity Building 75,000 $1,148,346 The following temporarily restricted net assets were released from donor restrictions by incurring expenses (or through the passage of time), which satisfied the restricted purposes specified by the donors: Supporting Grassroots Anti-Slavery Groups $1,129,972 Raising Awareness 1,198,686 Research and Documentation 12,753 Educating Policymakers 1,732 $2,343,143 4. LEASE COMMITMENTS FTS leases office space under a five-year agreement, which originated in June 2009 and expires on May 31, 2014. The lease provides for 6.57% tenant share of real estate and operating costs. The following is a schedule of the future minimum lease payments: Year Ended December 31, 2010 $ 102,839 2011 105,410 2012 108,045 2013 110,746 2014 46,618 $ 473,658 Rent expense for the year ended December 31, 2009 was $89,207. 11

NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 5. RELATED PARTY TRANSACTIONS FTS rents its California office and occasionally editing facilities from Redondo Systems, Inc., a company owned by the husband of an FTS staff member. FTS pays market rates for the use of these facilities. The total value of these transactions in 2009 was $13,800. It is management's opinion that no excess benefits are conveyed by these transactions. 6. OTHER ITEMS Fiscal Agency - FTS has a fiscal agency relationship with Anti-Slavery International (ASI), based in London, United Kingdom. In 2008, FTS received $325,000 for the benefit of ASI, which funds were disbursed to ASI in 2009. Therefore, $325,000 was reclassified from temporarily restricted net assets to amounts held for others in the accompanying financial statements. In 2009, FTS received $260,000 for the benefit of ASI and disbursed $158,400 to ASI, retaining contractually agreed administrative fees of $2,600. Aside from the administrative fees, FTS does not record grants received for ASI as income or grants disbursed to ASI as expenses. FTS exercises no oversight, management, or control over use of these funds. Transfer of Net Assets - During 2009, FTS reclassified $137,518 from unrestricted to temporarily restricted net assets as certain contributions received in the prior year were deemed temporarily restricted and not appropriately classified as such in the prior year financial statements. 7. SUBSEQUENT EVENTS In preparing these financial statements, FTS has evaluated events and transactions for potential recognition or disclosure through July 12, 2010, the date the financial statements were issued. 12