2025 Annual Report

PLI 2025 Annual Report

BOARD OFFICERS

Adrian E. Dollard Chair of the Board

Lynn K. Neuner Vice Chair of the Board

BOARD OF TRUSTEES

*Robert P. Bartlett, III W.A. Franke Professor of Law and Business Stanford Law School

Jai Massari Co-Founder & Chief Legal Officer Lightspark

CHAIRS EMERITI Devereux Chatillon William P. Frank Hon. Angela M. Mazzarelli Werner L. Polak Samuel W. Seymour TRUSTEES EMERITI David M. Balabanian Charles E. Barnett Stephen J. Friedman Edward F. Greene William F. Kennedy Hon. William F. Kuntz Lance Liebman John J. Roche Frederick P. Schaffer John S. Siffert Hon. Elizabeth S. Stong John W. White

Troy A. McKenzie Dean New York University School of Law

Philip R. Bryce Global Chief Knowledge Officer Mayer Brown LLP

Diana C. Miller Global Head of Litigation and Investigations OKX

Anthony J. Casey Professor & Faculty Director The University of Chicago Law School

Ellen M. Cosgrove President EMC Consulting LLC

Tiffany Moller Co-Founder & Partner Jonas Moller LLP

*Adrian E. Dollard Founder, Katerincon; Co-Founder, Qatalyst (Ret.)

*Lynn K. Neuner Partner Simpson Thacher & Bartlett LLP

*Jonathan I. Forrest Principal Deloitte Tax LLP

*Hon. Dianne T. Renwick Presiding Justice New York State Supreme Court, Appellate Division First Department

Hon. Diane Gujarati U.S. District Judge

Noga Rosenthal Chief Privacy Officer & General Counsel Ampersand

United States District Court, Eastern District of New York

Dawson Horn, III Associate General Counsel, Litigation (Ret.) AIG

*Tammy L. Roy Partner Cahill Gordon & Reindell LLP

Larry H. Krantz Founding Member & Partner Krantz & Berman LLP

Katherine J. Stoller Partner A&O Shearman

*Mei Lin Kwan-Gett Deputy General Counsel & Global Head of Litigation Citigroup

D. Scott Tucker Deputy General Counsel, Global Litigation Meta Platforms, Inc.

Carmen J. Lawrence Partner King & Spalding LLP

*Members of the Executive Committee

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2025 Annual Report

of the Chair & Vice Chair of the Board Report

On behalf of PLI’s Board of Trustees, we are pleased to report that in 2025 PLI continued to grow, thrive, and serve its community of over 475,000 Privileged Members. While increasing revenue by 5% over the previous year, the organization grew in the number of certificates issued (nearly 1.2 million, a 7% increase) as well as credits (2.5 million, up 7.7%). Thanks to careful planning and execution throughout PLI, this progress has taken place alongside great advancements in PLI’s five-year Strategic Plan. In 2025, strategic achievements included: A More Learner-Centric PLI.edu The launch of a completely redesigned website in early 2025 was the capstone to a series of projects to create a cohesive and accessible digital ecosystem for learners. Providing access in just one click to PLI’s thousands of hours of world-class content, the site incorporates personalization tools to allow users to easily find, follow, and launch programs relevant to their interests and credit needs. Read more about this major project and the many enhancements to the site on page 5. PLI continues to be the gold standard in continuing legal education and other training, offering more than 650 programs in 2025 available in person, streaming via live webcast, and on-demand. Whether meeting up for in-person training and networking opportunities, or catching up on a course from their desks or the PLI mobile app, program attendees enjoy a consistent experience that centers their learning. Elevating and Engaging Faculty These learning opportunities are made possible by more than 4,000 volunteer faculty. These experts, from across

the legal, corporate, academic, and nonprofit sectors, lend their time and considerable expertise to advance the profession, and PLI has invested in ways to strengthen ties and show appreciation. In 2025, PLI streamlined the way in which program organizers gather information from Program Chairs and speakers, launching PLI Engage, a web-based portal that centralizes deadlines, materials, checklists, FAQs, and resources. The organization also honored retiring faculty and authors at its second annual Contributor Appreciation Dinner. Strengthening PLI’s Pro Bono Commitment PLI presented its first Victor J. Rubino Award for Excellence in Pro Bono Training, recognizing longtime faculty member Toby J. Rothschild. This award was developed in honor of PLI’s late President, who did so much to build and sustain PLI’s pro bono outreach. We believe Vic would be proud to see that in 2025, the number of complimentary Pro Bono Memberships for qualified legal services organizations topped 900, along with 2,400 individual scholarships allowing access to essential training. PLI also reported an impressive 10% growth in pro bono usage in 2025. Among its new offerings, the pro bono team presented a successful in-person workshop on direct and cross-examination skills for legal services attorneys, and an on-demand, interactive program covered best practices for pro bono clinics. In this Report, you will see examples of PLI’s ongoing dedication to keeping learners ever current . We are proud to be part of an organization that continues to play such an essential role in educating the legal community.

ADRIAN E. DOLLARD CHAIR OF THE BOARD

LYNN K. NEUNER VICE CHAIR OF THE BOARD

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2025 Annual Report

of the President Report An Exciting Evolution From programs to publications, and podcasts to short-form videos, PLI has evolved in recent years to become a full-spectrum provider of essential and engaging learning content. In 2025, we made strides to further innovate and expand our offerings and audiences. Learning About — and With — AI As AI transforms the legal and business landscape, programs related to the topic continue to be among our most popular: Registrations for this program type grew by 50% in the past year, with popular courses covering up-to-the- minute regulatory changes as well as practical use cases. In collaboration with the American Arbitration Association, we released an innovative course for law firm leaders looking to implement generative AI strategies within their organizations. Looking to harness AI efficiently and ethically to enhance our business and customer experience, we released our Ruby chatbot, available 24/7 on our website to answer common questions on topics such as CLE requirements and account information. Our teams also have used AI to generate illustrations of hypotheticals in programs, allowing us to engage learners while enabling faculty and PLI staff to enhance their presentations. We have been careful to approach AI strategically and proactively; in doing so, we have positioned PLI as a thought leader in this space, offering unique content such as our AI and the Future of Law podcast, along with our first Substack newsletter, Unprecedented: Exploring the Future of the Legal Profession.

Reflecting this strategic approach, in 2025 we established an Innovation Council of leaders from the legal and corporate sectors, and hired PLI’s first Director of Innovation, who immediately set out to work on ways to democratize the use of emerging technologies throughout PLI. New Formats and Learners Recognizing that our customers are eager to learn in a variety of formats, we have launched a variety of new products including our first audiobook, Breaking

SHARON L. CRANE PRESIDENT

Our Members have responded well to our growing collection of bite-sized learning opportunities, such as The Well-Rounded Lawyer, a series featuring actionable insights on mindfulness and positive psychology, and Career Milestones, offering testimonials and advice from lawyers at various professional stages. I am grateful to be part of an organization serving an engaged, curious, and motivated community of Privileged and Pro Bono Members, and appreciate the many volunteer contributors and PLI staff who make this learning possible. Thanks also to our Board of Trustees for their guidance. It is exciting and fulfilling to lead PLI during such a transformative time — and I look forward to sharing more successes in the coming year.

Ground: How Successful Women Lawyers Build Thriving Practices,

recorded with author Deborah Farone; as well as a digital version of PLI Press’s Transfer Pricing Answer Book that offers readers CPE credit on the successful completion of Q&A modules. We were proud to team up with Stanford Law School to produce and distribute Under Review with Alex Su , our first CLE-accredited video series, featuring conversations with practitioners, academics, and changemakers on topics at the intersection of law and business. Over the past year, we have expanded our outreach to an audience who will enjoy a relationship with PLI well into the future: law students. In addition to our Law School Hub, which offers curated content for students and their schools, last year we launched the How to Navigate Law School podcast. This outreach ensures that PLI reaches all the learners who can benefit from our content, including professionals in Privileged Member organizations who may not need CLE, such as those in professional development, legal recruiting, and business development and marketing.

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2025 Annual Report

TRANSFORMING OUR Website Experience The launch of the redesigned PLI.edu in early 2025 marked a significant milestone in PLI’s creation of a consistent, state-of-the-art learning ecosystem. The redesign was the result of nearly two years of focused work and collaboration across PLI. Throughout the process, teams continually incorporated Member feedback, tested assumptions, and made thoughtful decisions to bring a modern, streamlined site to life with one goal in mind: putting learners first. Features include:

• A customized homepage spotlighting featured programs, credit tracking, and recommendations shaped by profile preferences. • Enhanced search with stronger filters and navigation to quickly surface relevant content. • Seamless mobile learning through integration with PLI’s award-winning app, alongside an updated media player designed for a smoother viewing experience.

• Curated collections to help stay current with fast-moving topics plus tailored resources for corporate counsel, paralegals, law students, and other intended audiences.

• Quick access to PLI’s robust library of programs covering 33 practice areas — and available to launch in one click.

The website reflects PLI’s commitment to innovation: pairing best-in-class content with thoughtful technology and design so learners can find what they need faster, track progress with confidence, and stay ever current .

HONORED FOR DESIGN & DIGITAL TRANSFORMATION Transform North America DotCOMM Vega

AWARDS

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2025 Annual Report

Our Service 2 0 2 5

GIVING BACK One of the defining qualities of PLI staff in both New York and San Francisco is their dedication to making an impact in their communities — as illustrated by the ongoing success of PLI Gives Back . Through this initiative, which offers all staff a day of paid time off annually to volunteer, PLI has donated over 600 hours to group projects including soup kitchens and food banks; parks, gardens, and playgrounds; arts and literacy organizations; and more. In 2025, PLI Gives Back organized volunteer groups to help these organizations: • Branch Brook Park • Broadway Community • City Harvest • Community Food Bank of New Jersey • FABSCRAP • Friends of Alemany Farm – San Francisco • God’s Love We Deliver • NYC Partnership for Parks • Project Open Hand – San Francisco • Tenafly Nature Center

CELEBRATING SERVICE In what has become an annual tradition, the Contributor Appreciation Dinner is a chance for PLI to thank and celebrate retiring program chairs and authors, many of whom have shared decades of expertise and service with the PLI community. The contributors were joined at the 2025 dinner by members of the Executive Group, Trustees, PLI staff, and family. In 2025, PLI presented its first-ever Victor J. Rubino Award for Excellence in Pro Bono Training at the dinner. Longtime faculty member Toby Rothschild, who chaired and taught popular programs on pro bono ethics and related topics, accepted the award from Pro Bono Director Janet Siegel. The award memorializes late PLI President Rubino, who grew the organization’s pro bono and public interest commitments and shaped the Pro Bono Membership and other programs that continue to thrive today. Both the award and the dinner were developed as part of PLI’s strategic initiatives to strengthen ties with faculty and amplify its pro bono mission.

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2025 Annual Report

PLI Remembers

We offer condolences on the passing of these dear friends and colleagues in 2025.

Catherine T. Dixon, a leader in corporate law, business transactions, and disclosure, and retired partner at Weil, Gotshal & Manges. She shared her knowledge with others, contributing regularly to PLI programs for more than a decade, including the Annual Institute on Securities Regulation, Private Placements and Hybrid Securities Offerings, and Corporate Governance, among others. Earlier in her career, Catherine served as Chief Counsel of the Division of Corporation Finance at the U.S. Securities and Exchange Commission (SEC).

Arthur Fleischer, Jr., who co-founded PLI’s Annual Institute on Securities Regulation and regularly presented at the program for more than 50 years. He spent his 65-year legal career at Fried Frank, where he led the Mergers and Acquisitions Practice and built a reputation as a pioneering dealmaker in mergers and acquisitions while championing pro bono work and the arts. He also served as Executive Assistant to the Chairman of the SEC from 1961 to 1964.

Hon. George C. Pratt (Retired), former U.S. Circuit Court Judge for the Second Circuit Court of Appeals and a former U.S. District Court Judge in the Eastern District of New York. A founder of Farrell Fritz, he returned to that firm after retiring from the bench and served as an arbitrator and mediator in national and international disputes. Judge Pratt was the founding Co-Chair of PLI’s Annual Section 1983 Civil Rights Litigation program, now in its 43rd year.

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2025 Annual Report

FINANCIAL STATEMENTS

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Board of Trustees of Practising Law Institute Opinion We have audited the financial statements of The Practising Law Institute (the “Institute”), which comprise the statements of financial position as of December 31, 2025 and 2024, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Institute as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for opinion We conducted our audits of the financial statements in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Institute and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of management for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Institute’s ability to continue as a going concern for one year after the date the financial statements are available to be issued. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with US GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 Institute’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Institute’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

STATEMENTS OF FINANCIAL POSITION As of December 31,

2025

2024

Assets Cash and cash equivalents............................................ $

17,110,049 $ 19,464,875

Accrued interest and dividends receivable ...................................... 4,196 Accounts receivable for programs, publications and memberships, net of allowance for credit losses of approximately $479,000 in 2025 and $540,000 in 2024.......... 2,633,605

4,213

2,190,439 Investments, at fair value...................................................... 138,148,358 127,074,771 Inventories.................................................................................... 256,267 279,750 Fixed assets, net..................................................................... 28,564,144 30,542,077 Goodwill. ...................................................................................... 285,900 381,200 Other intangible assets, net.......................................................... 140,000 140,000 Prepaid expenses and other assets.......................................... 7,392,478 6,616,416 Operating lease - right of use assets........................................ 16,903,036 21,290,403 Total assets..................................................................... $ 211,438,033 $ 207,984,144 Liabilities and Net Assets Liabilities Accounts payable and accrued expenses................. $ 10,840,756 $ 10,164,930 Deferred revenues................................................................ 40,212,539 38,734,202 Operating lease liability......................................................... 21,853,258 27,509,492 Term bank loan................................................................................... - 7,500,000 Accrued postretirement benefits.......................................... 14,275,000 13,294,000 Total liabilities..................................................................... 87,181,553 97,202,624

Net Assets - without donor restrictions ............................. 124,256,480 110,781,520 Total liabilities and members equity......................... $ 211,438,033 $ 207,984,144

The accompanying notes are an integral part of these financial statements.

STATEMENTS OF ACTIVITIES For the years ended December 31,

2025

2024

Operating activities Revenues Programs, publications and memberships............. $ 91,367,710 $ 87,179,542 Expenses Programs, publications and memberships..................... 87,524,821 80,420,527 General and administrative............................................... 9,055,493 8,496,869 Total expenses......................................................... 96,580,314 88,917,396 Decrease in net assets from operating activities................................................. (5,212,604) (1,737,854) Non-operating activities Interests and dividends.................................................... 2,628,803 2,577,597 Realized and unrealized gains on investments, net................ 16,543,974 9,729,010 Increase in net assets from non-operating activities................................................ 19,172,777 12,306,607

Increase in net assets before pension related adjustment other than service cost................................. 13,960,173

10,568,753

Pension related adjustment other than service cost.......... (485,213)

842,627

CHANGE IN NET ASSETS .................................... 13,474,960

11,411,380

Net assets, beginning of year ..................................... 110,781,520 99,370,140 Net assets, end of year .............................................. $124,256,480 $ 110,781,520

The accompanying notes are an integral part of these financial statements.

New York, New York May 12, 2026

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2025 Annual Report

FINANCIAL STATEMENTS

STATEMENT OF FUNCTIONAL EXPENSES For the year ended December 31, 2025

STATEMENTS OF CASH FLOWS For the years ended December 31,

2025

2024

Cash flows from operating activities Change in net assets.............................................................. $ 13,474,960 $ 11,411,380 Adjustments to reconcile change in net assets to net cash provided by operating activities: Pension related adjustment other than service cost................................................................................ 485,213 (842,627) Depreciation and amortization................................................... 7,060,915 5,764,604 Amortization of right of use assets............................................ 4,387,367 4,336,353 Bad debts......................................................................................... 2,500 112,500 Realized and unrealized gains on investments, net.................. (17,163,686) (10,281,789) Changes in operating assets and liabilities: Interest and dividends receivable ....................................................... 17 63,384 Accounts receivable................................................................ (445,666) 72,918 Inventories................................................................................... 23,483 (14,330) Prepaid expenses and other assets........................................ (776,061) (837,134) Accounts payable and accrued expenses................................ 390,367 (487,607) Deferred revenues.................................................................. 1,478,337 964,268 Lease liability........................................................................ (5,656,234) (5,401,921) Accrued postretirement benefits............................................... 495,787 539,627 Net cash provided by operating activities...................... 3,757,299 5,399,626 Cash flows from investing activities Capital expenditures .................................................................. (4,702,225) (8,084,766) Purchases of investments........................................................... (8,641,827) (15,386,177) Proceeds from sales of investments........................................... 14,731,927 17,631,947 Net cash provided by (used in) investing activities.............. 1,387,875 (5,838,996) Cash flows from financing activities Repayments of borrowings........................................................ (7,500,000) (1,000,000) Net cash used in financing activities............................. (7,500,000) (1,000,000) NET DECREASE IN CASH AND CASH EQUIVALENTS (2,354,826) (1,439,370)

Programs Publications and Memberships

General and Administrative

Total

Compensation

$ 54,193,111 $ 6,635,189 $ 60,828,300

Professional fees

1,564,962

898,157

2,463,119

Advertising and promotion

1,569,239

Office expenses

795,995

129,339

925,334

Technology maintenance

7,831,209

530,187

8,361,396

Royalties

726,361

Occupancy

5,674,720

335,147

6,009,867

Travel

1,374,246

72,462

1,446,708

Training

266,385

34,908

301,293

Program expenses

4,808,418

1,164

4,809,582

Depreciation and amortization

6,796,324

264,591

7,060,915

Insurance

462,767

39,098

501,865

Other post retirement employee benefit

971,431

86,569

1,058,000

Interest

207,593

Office equipment

121,166

8,199

129,365

Telecommunication

293,744

23,427

317,171

Other expenses

112,500

Total expenses

$ 80,420,527 $ 8,496,869 $ 88,917,396

The accompanying notes are an integral part of this financial statement.

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2025 Annual Report

FINANCIAL STATEMENTS

Intangible Assets Intangible assets are recorded at their fair value at the date of acquisition. The Institute accounts for intangible assets, other than goodwill, subsequent to acquisition based on the asset’s useful life. The useful life of the intangible asset is the period over which the asset is expected to contribute directly or indirectly to the Institute’s future cash flows. An asset for which no legal, regulatory, contractual, competitive, economic, or other factors that limit its useful life is considered to have an indefinite useful life. The Institute evaluates the recoverability of identifiable intangible assets whenever events or changes in circumstances indicate that an intangible asset’s carrying amount may not be recoverable. The evaluation of asset impairment requires the Institute to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require judgment and actual results may differ from assumed and estimated amounts. If the carrying amount of the long-lived asset (or asset group) exceeds its fair value and the carrying amount is not recoverable, an impairment charge is recognized. An impairment loss is measured as the amount by which the long-lived asset (or asset group) exceeds its fair value. Revenue Recognition The Institute follows guidance whereby revenue is recognized when control of the promised goods or services are transferred to the customers in an amount that reflects the consideration the Institute expects to be entitled to in exchange for those goods or services. The applicable standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. Donated Services Volunteer instructional services provided by attorneys and others in the legal profession have not been reflected in the accompanying financial statements as the nature of these services does not meet the criteria for recognition of contributed services under U.S. GAAP. Scholarships Scholarships given to program participants principally for financial need totaled approximately $26,263,000 and $23,816,000 in 2025 and 2024, respectively. Program, publication and membership revenues on the statements of activities are shown net of these scholarships. There are three ways to apply for a PLI Scholarship: (1) Fill out an on-line application for any program and submit to PLI’s Pro Bono Department for review and approval; (2) Become a Pro Bono Privileged Member; and (3) Register for programs that PLI offers at no cost. For items (1) and (2), PLI assigns a dollar value to its scholarships offered throughout the year. Since approximately 92% of program registrations are at “member rate” vs. approximately 8% of program registrations at “retail rate,” PLI values its Scholarship Program at “member rate” rather than “retail rate.” The member rate is expressed as a percentage of the retail rate calculated based on actual privileged membership revenue as a percentage of retail value. For item (3), PLI values the scholarship at the rate established by the outside pricing consultants. Expense Allocations Direct expenses are assigned to the various programs and supporting services based upon actual costs incurred. Indirect expenses are principally allocated based on headcount. Fair Value Measurements The Institute follows guidance which establishes a framework for measuring fair value, expands disclosures about fair value measurements and provides a consistent definition of fair value, which focuses on an exit price between market participants in an orderly transaction. The guidance also prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information and establishes a three-level hierarchy for fair value measurements based on the transparency of information used in the valuation of an asset or liability as of the measurement date. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. The type of investments in Level 1 include listed equities held in the name of the Institute, and exclude listed equities and other securities held indirectly through commingled funds. Level 2 - Pricing inputs, including broker quotes, are generally those other than exchange quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. Level 3 - Pricing inputs are unobservable for the assets or liability and include situations where there is little, if any, market activity for the assets or liability. The inputs into the determination of fair value require significant management judgment or estimation. Investments that are included in this category include hedge funds, privately held investments and partnership interests. The Institute follows guidance on measuring the fair value of alternative investments, which offers investors a practical expedient for measuring the fair value of investments in certain entities that calculate NAV. Under this practical expedient, entities are permitted to use NAV without adjustment for certain investments which: (a) do not have a readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company or have the attributes of an investment company. Additionally, investments measured using the NAV practical expedient are exempt from categorization within the fair value hierarchy and related disclosures. Instead, entities are required to separately disclose the required information for assets measured using the NAV practical expedient. Entities are also required to show the carrying amount of investments measured using the NAV practical expedient as a reconciling item between the total

NOTE 1 - ORGANIZATION Practising Law Institute (the “Institute”) is a not-for-profit organization founded in 1933 and chartered by the Regents of the University of the State of New York. The Institute provides lawyers and other professionals with continuing professional education through programs, publications and educational software. The Internal Revenue Service has ruled that the Institute is a Section 501(c)(3) organization exempt from federal income taxes under Section 501(a) of the Internal Revenue Code (the “IRC”). The Institute has been classified as a publicly supported charitable organization under Section 509(a)(2) of the IRC. The Institute is also exempt from state and local income taxes. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies followed by the Institute in the preparation of the accompanying financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and have been consistently applied in the presentation of the accompanying financial statements. Basis of Presentation The classification of the Institute’s net assets, revenues, expenses, gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, all of the Institute’s net assets are classified as without donor restrictions as they are available for general use and operating activities without any donor- imposed restrictions. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures 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 and Cash Equivalents Cash and cash equivalents include financial instruments with original maturities at the date of purchase of three months or less and exclude cash and cash equivalents held in the Institute’s investment management account, which are considered to be held for long-term purposes. Investments Investments in publicly traded securities are recorded at fair market value generally determined on the basis of quoted market prices. Investments in certain mutual funds are carried at fair value as determined by quoted market prices. The Institute’s alternative investments in certain not-readily-marketable securities consist of certain mutual funds, hedge funds and private equity, for which market values are not readily obtainable. These alternative investments are carried at fair value based upon their stated net asset value (“NAV”). The estimated value provided by these managers may differ from actual values had a ready market for these investments existed. Purchases and sales of securities are reflected on a trade-date basis. Gains and losses on sales of securities are based on average costs and are recorded in the statements of activities in the period in which the securities are sold. Interest is recognized as earned. Dividends are recognized as of the ex-dividend date. Accounts Receivable and Allowance for Credit Losses Accounts receivable relate primarily to program, publication and membership revenue. Management provides an allowance for credit losses for estimated losses that may result from the inability of its customer to make required payments based on the consideration of the type of receivable, responsible party, the known financial condition of the customer, historical collection patterns and comparative aging. These allowances are maintained at a level management considers adequate to provide for subsequent adjustments and potential uncollectible accounts. These estimates are reviewed periodically and if the financial condition of a party changes significantly, the Institute will evaluate the recoverability of any accounts receivable from that customer and write off any amounts that are no longer considered to be recoverable. Any payments subsequently received on such receivables are recorded as income in the period received. Inventories Inventories consist of books in process of approximately $40,000 and $49,000 and completed books of approximately $216,000 and $230,000 at December 31, 2025 and 2024, respectively. The Institute utilizes the weighted average method of capturing inventory costs. Costs include paper, printing, binding, taping and outside editorial costs, and are valued at the lower of average cost or market. Fixed Assets The Institute capitalizes all expenditures for fixed assets in excess of $1,000. Furniture, equipment and computer hardware are stated at cost and are depreciated over periods ranging from five to six years using the straight-line basis. Computer software and website costs are being amortized over a three- to 10-year period from the time the asset is placed into service. Leasehold improvements are amortized over the shorter of their estimated useful lives or terms of the leases. Goodwill Goodwill represents the excess of the consideration paid over the fair value of identifiable assets acquired. The Institute follows guidance allowing not-for-profit entities the option to amortize goodwill on a straight-line basis over 10 years or less, and to test for impairment at the entity or reporting unit level when a triggering event occurs that indicates the fair value of the entity or a reporting unit may be below its carrying amount. The Institute is amortizing the goodwill prospectively over 10 years and will test for impairment at the reporting unit level when a triggering event occurs.

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2025 Annual Report

FINANCIAL STATEMENTS

NOTE 3 - INVESTMENTS At December 31, 2025 and 2024, investments consisted of the following: 2025 Level 1

amount of investments categorized within the fair value hierarchy and total investments measured at fair value on the face of the financial statements. Advertising The Institute expenses the costs of advertising as incurred, except for direct-response advertising. Direct-response advertising consists primarily of the costs to produce promotional mailings that contain coded order forms and coupons for specific seminars and publications. These costs are capitalized and expensed during the period in which the seminars are held or upon the sale of the specific publications. Advertising costs totaling approximately $15,000 and $17,000 are included in prepaid expenses at December 31, 2025 and 2024, respectively. Advertising expense for the years ended December 31, 2025 and 2024 totaled approximately $1,569,000 and $1,663,000, respectively. Concentration of Market and Credit Risk Cash, cash equivalents and investments are exposed to interest rate, market, and credit risks. The Institute maintains its cash and cash equivalents in various bank deposit accounts that may exceed federally insured limits at times, however, the Institute has not experienced, nor does it anticipate any losses with respect to these bank accounts. To minimize risk, the Institute’s cash accounts are placed with high- credit quality financial institutions, and the Institute’s investment portfolio is diversified with several investment managers in a variety of asset classes. The Institute regularly evaluates its depository arrangements and investments, including performance thereof. Measure of Operations Operations include all revenues and expenses other than investment income, related investment advisory fees, pension related adjustments other than service cost, and other items considered to be unusual or of a non-recurring nature. Income Taxes The Institute follows guidance that clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return, including issues relating to financial statement recognition and measurement. This guidance provides that the tax effects from an uncertain tax position can only be recognized in the financial statements if the position is “more-likely-than-not” to be sustained if the position were to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. The Institute is exempt from federal income tax under IRC section 501(c)(3), though it is subject to tax on income unrelated to its exempt status, unless that income is otherwise excluded by the IRC. PLI has processes presently in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated income; to determine its filing and tax obligations in jurisdictions for which it has nexus; and to identify and evaluate other matters that may be considered tax positions. The Institute has determined that there are no material uncertain tax positions that require recognition or disclosure in the financial statements. Leases The Institute recognizes the assets and related liabilities for the rights and obligations created by the leases (lessees) on the statement of financial position for leases with terms exceeding 12 months. A lease is defined as a contract or part of a contract that conveys the right to control the use of identified assets for a period of time in exchange for consideration. The lessee in a lease will be required to initially measure the right- of-use (“ROU”) asset and the lease liability at the present value of the remaining lease payments, as well as capitalize initial direct costs as part of the ROU asset. The Institute accounts for non-lease components and the lease components to which they relate as a single lease component for all leases. The Institute determines if an arrangement is a lease or contains a lease at inception of a contract. A contract is determined to be or contain a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) in exchange for consideration. The Institute determines these assets are leased because the Institute has the right to obtain substantially all of the economic benefit from and the right to direct the use of the identified asset. Assets in which the supplier or lessor has the practical ability and right to substitute alternative assets for the identified asset and would benefit economically from the exercise of its right to substitute the asset are not considered to be or contain a lease because the Institute does not have the right to control and direct the use of the identified asset. The Institute’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases result in the recognition of ROU assets and lease liabilities on the statement of financial position. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease, measured on a discounted basis. The Institute determines lease classification as operating or finance at the lease commencement date. ROU assets and lease liabilities for operating leases are included in the statement of financial position and presented separately based on the classification of the underlying lease arrangement. ROU assets and lease liabilities for financing leases would be included within property, plant and equipment, and lease liabilities, respectively, in the statement of financial position. Currently, the Institute does not have any finance leases. At lease inception, the lease liability is measured at the present value of the lease payments over the lease term. The ROU asset equals the lease liability adjusted for any initial direct costs, prepaid or deferred rent, and lease incentives. For the initial and subsequent measurement of all lease liabilities, the discount rate used is the Risk-Free Treasury Par Yield Curve Rate. The portion of payments on operating lease liabilities related to interest, along with the amortization of the related ROU, is recognized as rent expense. This rent expense is recognized on a straight-line basis over the term of the lease. The portion of payments on finance lease liabilities related to interest is recognized as interest expense. The amortization of the ROU assets under finance leases is recognized as part of depreciation expense.

Total

$ 1,081,071

Money market funds............................................................... $ 1,081,071 Fixed income mutual funds........................................................ 12,894,300 Common stocks and commodity mutual funds......................... 58,376,496

12,894,300 58,376,496 72,351,867

$ 72,351,867

65,767,633

Alternative investments at NAV...................................................................... Redemption Receivable*............................................................................... Investments, at fair value...........................................................................

28,858

$138,148,358

2024

Level 1

Total

Money market funds. ............................................................. $ 766,262 $ Fixed income mutual funds....................................................... 12,039,453 Common stocks and commodity mutual funds........................ 57,594,384

766,262

12,039,453 57,594,384 70,400,099 56,439,799

$ 70,400,099

Alternative investments at NAV

234,873

Redemption Receivable*............................................................................... Investments, at fair value...........................................................................

$127,074,771

* Redemption receivable pertains to a transfer of funds from an investment fund agreed to prior to December 31, 2024 and 2025 for which the funds will be received subsequent to year end. Investments valued at NAV or its equivalent as of December 31, 2025 consisted of the following:

Frequency of Redemptions (If Currently

Number

Redemption Notice Period

Fair Value of Funds

Commitments Eligible)

Alternative

mutual funds

$54,132,340 $ 8,706,710

6 4

$ $

- Monthly and quarterly 5 to 90 days

Hedge funds

- Monthly/semi-

45 to 90 days

annually/annually.

Private equity

$ 2,928,583

$ 4,279,831 N/A

N/A

Investments valued at NAV or its equivalent as of December 31, 2024 consisted of the following:

Frequency of Redemptions (If Currently

Number

Redemption Notice Period

Fair Value of Funds

Commitments Eligible)

Alternative

mutual funds

$47,093,341 $ 8,065,742

6 4

$ $

- Monthly and quarterly 5 to 90 days

Hedge funds

- Monthly/semi-

65 to 95 days

annually/annually.

Private equity

$ 1,280,716

$ 3,670,806 N/A

N/A

The net realized and unrealized gains for the years ended December 31, 2025 and 2024 totaled approximately $17,164,000 and $10,282,000, respectively. Investment expenses incurred for the years ended December 31, 2025 and 2024 totaled approximately $620,000 and $553,000, respectively. Included within the investment balance at December 31, 2024 are certain shares of stock which have been pledged as collateral in conjunction with the term bank loan, line of credit and letter of credit (Note 7). The value of those shares at December 31, 2024 totaled approximately $53,988,000, and are considered to be Level 1 within the fair value hierarchy. As the bank loan was paid in full prior to the May 2025 maturity date, collateral for this loan The Institute regularly monitors liquidity required to meet its operating needs and other contractual agreements, while also striving to maximize the investment of its portfolio. The Institute has various sources of liquidity at its disposal, including cash and cash equivalents, short-term marketable equity securities and a revolving line of credit. In addition to financial assets available to meet general expenditure over the next 12 months, the Institute operates with a balanced budget and anticipates collecting sufficient operating revenue and investment portfolio returns to cover all of its operating needs. was no longer required. NOTE 4 - LIQUIDITY

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2025 Annual Report

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