PEI Cannabis Annual Report 2025

PRINCE EDWARD ISLAND CANNABIS MANAGEMENT CORPORATION Notes to Financial Statements Year Ended March 31, 2025

1. DESCRIPTION OF BUSINESS Prince Edward Island Cannabis Management Corporation (the "Corporation") is a wholly-owned Crown Corporation of the Province of Prince Edward Island and is responsible for the distribution and sale of adult use cannabis throughout Prince Edward Island. The head office is located at 3 Garfield Street in Charlottetown with five retail outlets located across the province. 102173 P.E.I. Inc. was incorporated as a private company under the Companies Act of Prince Edward Island on December 28, 2017. This company was dissolved when the Cannabis Management Corporation Act was proclaimed on August 20, 2018, at which time all property of 102173 P.E.I. Inc. became the property of the Corporation and the claims, rights, liabilities, obligations and privileges of 102173 P.E.I. Inc. were transferred to and became vested in the Corporation. 2. BASIS OF PRESENTATION The financial statements have been prepared in accordance with, and are in compliance with, International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The principal accounting policies applied in the preparation of the financial statements are set out in Note 4. These financial statements were authorized for issuance by the Board of Directors on June 27, 2025. The Board of Directors have the power to amend the financial statements after issue. 3. BASIS OF MEASUREMENT The financial statements have been prepared on a historical cost basis and are presented in Canadian dollars, which is the functional currency of the Corporation. These financial statements have been prepared in accordance with IFRS, issued and in effect as of March 31, 2025. The significant accounting policies used in the preparation of these financial statements are summarized below. An overview of the standards, amendments, and interpretations on the conversion to IFRS, those adapted in the current year, and those which are issued but not yet in effect are presented below. Cash Cash is comprised of cash on hand and amounts on deposit with financial institutions. Accounts receivable Accounts receivable arise from trade sales and miscellaneous receivables. Amounts deemed uncollectible are written off and deducted from the carrying value of the receivable. Amounts subsequently recovered from accounts previously written off are credited to the allowance account in the period of recovery. (continues) 4. SIGNIFICANT ACCOUNTING POLICIES Changes in accounting standards

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PEICMC 2024-2025 Annual Report

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