PEI Cannabis 2023 Annual Report

PRINCE EDWARD ISLAND CANNABIS MANAGEMENT CORPORATION Notes to Financial Statements Year Ended March 31, 2023

8. DUE TO PROVINCE OF PRINCE EDWARD ISLAND Prince Edward Island Cannabis Management Corporation is a wholly owned Crown Corporation of the Province of Prince Edward Island. The Corporation's employee salaries and benefits are paid by the Province and are subsequently reimbursed by the Corporation. Net loss incurred during the year is receivable from the Province and net income incurred during the year is payable to the Province. 2023 2022

$ 5,304,141

Due to Province of Prince Edward Island

$ 3,383,297

These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

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9. LEASE LIABILITIES

2023

2022

The Corporation leases properties for its retail stores. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

$ 1,864,198

$ 1,342,810

(219,547)

Current portion

(160,060)

$ 1,644,651

$ 1,182,750

Future minimum capital lease payments are approximately: 2024

$ 219,547

2025 2026 2027 2028

238,800 238,800 238,800 238,800 1,029,239

Thereafter

Total minimum lease payments

2,203,986

Less: amount representing interest at various rates

339,788 $ 1,864,198

10. CONTRACTUAL OBLIGATIONS

The Corporation has entered into contracts with various suppliers for hardware maintenance, software support services, and security services. The total of these contracts is $141,303 and they expire within the next fiscal year.

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PEICMC 2022-2023 Annual Report

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