PEI Cannabis Annual Report 2025

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

9. LEASE LIABILITIES

2025

2024

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.

$ 1,526,658

$ 1,707,165

(238,800)

Current portion

(238,800)

$ 1,287,858

$ 1,468,365

Future minimum capital lease payments are approximately: 2026

$ 238,800

2027 2028 2029 2030

238,800 238,800 202,662 188,900 643,889

Thereafter

Total minimum lease payments

1,751,851

Less: amount representing interest at various rates

225,193 $ 1,526,658

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 $170,861 and they expire within the next fiscal year.

11. RELATED PARTY TRANSACTIONS These financial statements include the results of normal operating transactions with various provincial departments, Crown corporations, and agencies with which the Corporation is related. Operating transactions with related parties, such as insurance of $84,623 (2024 - $92,775), are recorded at the exchange amount which are rates as determined by the Province of Prince Edward Island. Management and staff of the Prince Edward Island Liquor Control Commission (PEILCC) assisted in the development, management, and ongoing operation of the Corporation. An estimation of the cost of these services has been expensed in various accounts in the amount of $798,621 (2024 - $846,788). Key management received $324,884 (2024 - $377,597) during the period for salaries and benefits. Post-employment benefits are the responsibility of the Province and are not included in these financial statements. The Corporation's employee salaries and benefits are paid by the Province and subsequently reimbursed by the Corporation. Net loss or income incurred during the period is receivable from or payable to the Province. The net income to be paid to the Province at year end is $2,454,995 (2024 - $3,035,779).

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PEICMC 2024-2025 Annual Report

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