MANA Nutritive Aid Products Inc.

Annual Report 2013

TABLE OF CONTENTS

Letter from the CEO 3

Fiscal Responsibility 5

Company Objectives 9

Where We’ve Been 11

Where We’re Going 13

1 2Cover photo by Allison Fowler, this page photo by David Johnson of Silent Images

LETTER FROM THE CEOMARK MOORE

Greetings!

You may be reading this report in the years to come to get a feel for what sort of year 2013 was for MANA, and if so, many of the events mentioned here may have begun to fade from signifi-cance. But, as I write this, the events of 2013 seem huge! Twitter went public, the Philippines were hit by a Typhoon, the US government stalled, there was a new Pope elected, the US struggled to launch the Affordable Care Act and the NSA allegedly listened in on a few of us. We lost a few makers of culture as well. The world lost freedom fighter Nelson Mandela, sound innovator Ray Dolby, and inventor of the assault rifle, Mikhail Kalashnikov.

As I look at the list above, I realize that, perhaps more than most small com-panies, MANA was affected by each of them. There are some pedestrian ways these events affected us: we tweet and enjoy Dolby sound on our headphones. However, I am thinking of the emer-gency shipment of our product to the Philippines just days after the Typhoon,

how the US government shutdown briefly delayed a USAID tender that we were awarded, and how the Pope’s leadership in focusing on social issues may open up new partnerships with churches. It is an exciting time to be alive, and very exciting indeed to be making emergency nutrition for the world’s most vulnerable children.

This year was a banner year for MANA. We did nearly $10.5 million in business, up 156% from last year. Our partnership with UNICEF outpaced their Long Term Agreement awarded to us for the year. USAID started buying more and more RUTF and RUSF. Perhaps most signifi-cantly, we were profitable! Losing money means we won’t sustain the important work we do and that is not an option. Take a look at our numbers and margins and you’ll see we run a pretty tight ship. Our status as a 501(c)(3) means we do not spend our days seeking donations, rather we seek to be a partner that others can trust, one that is aware of how important it is to manage things like supply chains,

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costs and forecasting, and equally aware of the importance of helping production partners in developing countries make ready to use foods for their own needs and people.

Mandela, Dolby, and Kalashnikov saw problems and devoted their genius to the answers. Their contributions make us wonder about the children we are able to help and the impact they could have on our ever-shrinking globe. We will have a better idea in several years, but today we know there are hundreds of thousands of children under the age of six that are living and breath-ing because they received a lifesaving dose of the MANA RUTF produced in our Fitzgerald, GA facility. That is our real return on investment and we are very proud of it! Indeed it will be a slow pay out, taking many decades to see the true impact, but the possibilities are thrilling to those of us at MANA. The impact could be in the form of a young Mandela who will lead humanity to new milestones or, more likely, in thousands

of healthy young people who, according to a 2013 United Nations World Food Programme study, could dramatically impact the GDP of a country like Ethio-pia or Nigeria where millions of packets of MANA are now on the ground.

To the many supporters and friends of MANA, we thank you and largely credit our success in 2013 to the many generous partners who quietly came alongside us in our mission. We are a work in progress, learning every day and eagerly facing new challenges with our creative best. Thanks for checking in and taking an interest in this public report. Feel free to reach out to me per-sonally if you need any clarity. Oh, and please make a note on your calendar to check in with us in 20 or 30 years. Per-haps we will be able to tell you about some of the young lives we have helped save that are changing their countries and our world for the better.

Sincerely, Mark Moore for the MANA Village

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ITEM 2013 2012Unrestricted Revenue

Product Sales $10,471,864 $4,151,496Foundation Support 2,500,000 1,856,125Public & Corporate Support 376,180 556,355Miscellaneous Income 1,762 20,943Interest Income - 67Released from Restrictions 993,480 235,581

Total Unrestricted Revenue 14,343,286 6,820,567Temporarily Restriced

Foundation Support 500,000 873, 000Released from Restrictions (993,480) (235,581)

Total Restricted Revenue (493,480) 637,419

Total Revenue 13,849,806 7,457,986

EXPENSESProgram Service Expenses 10,138,239 5,923,616Supporting Services Expenses 749,432 789,750

Total Expenses 10,887,671 6,713,366

NET ASSETS 2,654,060 (308,075)

STATEMENTS OF ACTIVITIESfor the years ended september 30, 2013 and 2012

fiscal responsibility

statement of revenue

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ASSETS 2013 2012CURRENT ASSETS:

Cash and cash equivalents $3,122,411 $710,434Accounts receivable 569,064 1,290,277Pledges receivable 500,000 873,000Inventory, net 2,888,895 1,032,822Equiptment held for sale 351,500 336,900Prepaid expenses and other assets 43,703 1,807

Total Current Assets $7,475,573 $4,245,240PROPERTY:

Building $1,816,720 $1,802,344Manufacturing equiptment 2,667,955 2,331,691Computer equiptment 97,874 104,233Vehicles 105,217 -Other equiptment and furnishing 22,610 24,851Construction in progress 1,141,308 846,861

Total 5,851,684 5,109,980Less accumulated deprication and amortization 620,113 331,463Property, net 5,231,571 4,778,517Other assets 4,600 4,600

Total 12,711,744 9,028,357

LIABILITIES AND NET ASSETSCURRENT LIABILITIES:

Current portion of notes payable $158,990 $80,939Current portion of capital lease obligations 4,987 -Accounts payable and accrued expenses 980,401 443,314

Total Current Liabilities 1,144,378 524,253LONG-TERM LIABILITIES

Capital lease obligations, net of current portion 8,034 -Notes payable, net of unamortized discount and current portion 8,905,272 8,812,179

Total Long-term Liabilities 8,913,306 8,812,179NET ASSETS:

Unrestricted 1,610,824 (1,844,791)Temporarily restricted 1,043,236 1,536,716

Total Net Assets 2,654,060 (308,075)

TOTAL $12,711,744 $9,028,357

STATEMENTS OF FINANCIAL POSITIONseptember 30, 2013 and 2012

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PROGRAM SERVICES EXPENSESfor the year ended september 30, 2013

TOTAL

$10 138 239

Service

Product expenses

Compensation

deprication

facilities expense

interest expense

insurance

Travel and entertainment

Communication expenses

other

research and development

professional fees

advertising expense

expense ($)

8,953,220

421,958

275,040

255,852

93,339

54,557

49,353

3,739

3,641

3,220

3,125

298

% of total

88.31

4.16

2.71

2.52

0.92

0.54

0.49

0.04

0.04

0.03

0.03

< 0.01

fiscal responsibility

allocation of expenses

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SUPPORTING SERVICES EXPENSESfor the year ended september 30, 2013

total expensesfor the year ended september 30, 2013

TOTAL

$749 432

Service

Compensation

Professional fees

Interest expense

fundraising

facilities expense

deprication

Travel and entertainment

office expenses

insurance

communication expense

other

expense ($)

351,961

149,842

121,049

31,570

31,147

21,868

19,725

12,207

5,844

4,115

104

% of total

46.96

19.99

16.15

4.21

4.16

2.92

2.63

1.63

0.78

0.55

0.01

program services expenses

supporting services expenses

total expenses

$10 138 239

$749 432

$10 887 671

93.12%

6.88%

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the cause

nearly 20 million children under five suffer from Severe acute malnutrition.1

A CHILD DIES DUE TO MALNUTRITION EVERY

8 seconds2

IN A YEAR THAT IS

3 942 000

most children suffering from Severe acute malnutrition live in south asia and sub-saharan africa.

company objectives

1, 2 & 3. Sources: www.unicef.org/media/files/Community_Based__Management_of_Severe_Acute_Malnutrition.pdf

our mission

MANA aims to prevent child deaths due to severe acute malnutrition by treating the condition through the production and distribution of ready to use fortified foods.

fortified peanut butter

paste

milk powder

vitamins and minerals

today mana nutrition can produce up to

21000 kg (that’s 46ooo lbs!) each day, enough to feed

15000children suffering from SAM for

6 weeks

1 pack of mana costs

30 centsto produce and deliver

3 packsof mana a day for

6 weekscan save a starving childs life 3

+ +

key figures

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distribution

whERE WE’VE BEENWe set high goals and exceed them. This year was no exception. In 2013 more cases of MANA RUTF landed in more countries and fed more children in need than ever before. We look forward to growing on this past year in 2014.

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CENTRAL AMERICA middle eastSOUTHEAST Asia

AFRICA

mexico2012 / 0 kids2013 / 6 kids

HAITI2012 / 25 kids2013 / 317 kids

unknown 1

2013 / 36,232 kids

pakistan2012 / 0 kids2013 / 34,784 kids

afghanistan2012 / 0 kids2013 / 10,145 kids

cambodia2012 / 0 kids2013 / 10 kids

burkina faso2012 / 0 kids2013 / 1 kid

BURUNDI2012 / 14000 kids2013 / 900 kids

CHAD2012 / 2000 kids2013 / 1,125 kids

DR CONGO2012 / 45 kids2013 / 1,947 kids

ETHIOPIA2012 / 2,085 kids2013 / 101,834 kids

ghana2012 / 0 kids2013 / 21 kids

liberia2012 / 0 kids2013 / 5,091 kids

MALAWI2012 / 0 kids2013 / 1,800 kids

NIGERiA2012 / 15000 kids2013 / 52,896 kids

tanzania2012 / 0 kids2013 / 1 kid

1. Exact location unknown. Delivered throughout Africa by the US Agency for International Development.Opposite page photograph by Silent Images. Above graphics not to scale.

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new initiative

whERE WE’re goingOur primary goal is to continue to deliver on the MANA mission to feed

children suffering from SAM. This year marked the birth of an innovative

idea for redistributing calories in an unbalanced world. Mark Moore,

CEO of MANA, had the invaluable opportunity to refine the innovative

idea of the ‘Calorie Cloud’ at the Unreasonable Climax in Boulder, CO.

It was met with a strong support from his peers and is an idea we are

excited to nurture and expand on in 2014.

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the calorie cloud

What if we could collect burned calories...

convert them into consumable calories...

and send them to those in need?

Half the world is stuffed

who has the incentive to pay for these calories?

nike + fuelbandjawbone up

fitbit one

fitness companies that want a meaningful and

profitable marketing plan

employers and insurance companies that pay for

employees health benefits

taxpayers that are tired of obesity costing their

economy billions

The other half is starving

69.2%of adults age 20 & over in the U.S. are overweight (2009-2010)1

1 package of RUTF has

500 cal.

97 000 000children under five years of age in

developing countries ARE underweight2

1. Source: Health, United States, 2012, table 63. 2. Source: World Health Organization (WHO).Photographs by Silent Images (opposite page); Steve Glass; and David Johnson

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www.mananutrition.org