FINANCIAL STATEMENTS
Other than investments under lockup period, the balance of the Institute’s investment portfolio is unreserved and has no Board restrictions or designations. The Board of Trustees has established an overall Investment Policy. Funds within the portfolio are managed by the Board of Trustees’ designated Investment Committee, which utilizes an independent financial investment advisor. As of December 31, 2025 and 2024, the following financial assets could readily be made available within one year of the balance sheet date to meet operating expenditures: 2025 2024 Cash and cash equivalents.................................................... $ 17,110,049 $ 19,464,875
As of December 31, 2025, future minimum rental commitments under noncancelable leases, classified as operating leases, were as follows:
Real-Estate
Equipment
Total
2026 ................................................................$ 6,102,616 2027 .................................................................. 6,135,522 2028 .................................................................. 6,169,416 2029 .................................................................. 3,284,316 2030 ..................................................................... 711,264
$ 32,829 $ 6,135,445
19,266 16,872
6,154,788 6,186,288 3,287,128
2,812
- -
711,264
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 Investments, at fair value.......................................................... 132,244,689
Thereafter..............................................................
-
-
2,190,439 59,202,902
Total minimum lease payments..................... 22,403,134 (Less): amounts representing interest................. (618,457)
71,779 (3,198)
22,474,913
(621,655)
Total financial assets available within one year................ $151,988,343
$ 80,858,216
$ 21,784,677 $ 68,581 $ 21,853,258 Supplemental balance sheet information related to operating leases at December 31, 2025 and 2024 is as follows: 2025 2024 ROU assets............................................................... $ 34,175,822 $ 34,123,951 Less: accumulated amortization................................. (17,272,786) (12,833,548) $ 16,903,036 $ 21,290,403 Weighted-average remaining lease term: 3.69 years 4.67 years Weighted-average discount rate: 1.56% 1.55% The components of lease costs for the years ended December 31, 2025 and 2024 is as follows: 2025 2024 Operating lease cost................................................ $ 4,818,159 $ 4,816,556
NOTE 5 - FIXED ASSETS At December 31, 2025 and 2024, fixed assets consisted of the following: 2025 Furniture, equipment and computer hardware....................... $ 15,572,724 Leasehold improvements........................................................... 18,505,490 Software..................................................................................... 57,980,823
2024
$ 14,907,873
18,513,475 53,666,793
Total fixed assets................................................................. 92,059,037
87,088,141
Less: accumulated depreciation and amortization................... (63,494,893)
(56,546,064)
Net fixed assets............................................................... $ 28,564,144
$ 30,542,077
Depreciation and amortization expense related to fixed assets for the years ended December 31, 2025 and 2024 totaled approximately $6,966,000 and $5,669,000, respectively. NOTE 6 - GOODWILL AND INTANGIBLE ASSETS In 2014, the Institute acquired the programming assets of The SEC Institute, a leader in the training of accountants, auditors, attorneys, and other related professionals for Securities & Exchange Commission compliance, financial reporting, and accounting education. The SEC Institute operates as a division of the Institute. The following tables summarize the changes in the Institute’s goodwill and intangible assets for the fiscal years ended December 31, 2025 and 2024:
Supplemental cash flow information related to leases for the years ended December 31, 2025 and 2024 follows: 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases....... $ 6,087,014
2024
$ 5,885,392
2025
2024
NOTE 9 - REVENUES Revenue from programs is recognized at the time the program is held. Revenue from subscriptions to publications is recognized pro rata over the subscription period as recipients receive benefits accordingly over the subscription period. Memberships fees are received in exchange for benefits provided by the Institute and are recognized pro rata over the membership period as members simultaneously receive and consume the benefits over the respective period. Revenue from book orders (publications) is recognized at the time of shipment and, at the same time, an allowance is recorded to account for returns. Revenue recognition for these various revenue streams coincides with the completion of the corresponding performance obligations to their customers. Programs, publications, and membership fees are generally billed on the same day of order placement and are due upon receipt. Amounts received in advance of recognition are recorded as deferred revenues. The changes in deferred revenues were caused by normal timing differences between
Intangibles Goodwill
Intangibles Goodwill
Book value, beginning of year.............$ 140,000 $ 381,200
$ 140,000 $ 476,500
Amortization........................................
-
(95,300)
-
(95,300)
Book value, end of year.......................$ 140,000 $ 285,900
$ 140,000 $ 381,200
As of December 31, 2025 and 2024 intangibles are comprised of trademark with a carrying value of $140,000, with an indefinite life. NOTE 7 - TERM BANK LOAN The Institute had a $12,000,000 term loan with a bank that matured on May 22, 2025 with a fixed interest rate of 2.3% per annum. This loan was paid in full prior to the maturity date. At December 31, 2024, the balance on the term bank loan was $7,500,000. The Institute has a $2,000,000 revolving line of credit with a maturity date of June 30, 2026 with an interest rate equal to an adjusted term SOFR plus 1.00% per annum and 0.15% per annum facility fee on the unused portion of available funds. At December 31, 2025 and 2024, there were no borrowings on the line of credit.
the satisfaction of performance obligations and customer payments. The disaggregation of the Institute’s revenue streams are as follows: 2025 Programs. ..................................................................... $ 5,543,299 Publications.................................................................... 10,376,344 Memberships. ................................................................ 75,448,067
2024
$ 5,843,192
10,215,816 71,120,534
NOTE 8 - LEASES Operating Leases
Total revenues..................................................... $ 91,367,710
$ 87,179,542
The Institute is obligated under two non-cancellable operating leases for office premises in San Francisco, California and New York, New York, that expire on July 31, 2030 and May 31, 2029, respectively. The lease payments are subject to increases for taxes and other building expenses. In conjunction with the New York City lease agreement, the Institute signed a letter of credit representing approximately five months of rent commitments. Additionally, the terms of the New York City and San Francisco lease agreements include both landlord contributions toward the cost of the construction related to the new office space as well as rent abatements during and after the construction period. Total rent and non-rent expenses (cleaning charges, real estate taxes, electric charges and tenant share of building operating expenses) amounted to approximately $6,009,000 and $5,994,000 in 2025 and 2024, respectively. The Institute has several smaller equipment leases as well. Total rent expense for these operating equipment leases for years ending December 31, 2025 and December 31, 2024, was approximately $16,000 and $18,000, respectively.
Management has elected the practical expedient not to disclose information about remaining performance obligations for the above revenue streams as these contracts primarily have original terms that are one year or less. NOTE 10 - DEFERRED REVENUES At December 31, 2025 and 2024, deferred revenues consisted of the following:
2025
2024
Programs. ..................................................................... $
92,633
$
84,919
Publications..................................................................... 3,390,127 Memberships. ................................................................. 36,729,779
3,022,217 35,627,066
Total deferred revenues....................................... $ 40,212,539
$ 38,734,202
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2025 Annual Report
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