PEICMC Annual Report 2026

PRINCE EDWARD ISLAND CANNABIS MANAGEMENT CORPORATION Notes to Financial Statements Year Ended March 31, 2026

4. SIGNIFICANT ACCOUNTING POLICIES (continued) Future accounting developments

A number of new standards and amendments to standards and interpretations are not yet effective for the year ended March 31, 2026 and have not been adopted by the Corporation in preparing these financial statements. These changes are not expected to have a material impact on the Corporation's financial statements. IFRS 18 - Presentation and Disclosure in Financial Statements IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies for annual reporting periods beginning on or after January 1, 2027. The new standard introduces the following key new requirements: • Present specified categories and defined subtotals in the statement of profit or loss • Provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements • Improve aggregation and disaggregation The company is still in the process of assessing the impact of the new standard on its financial statements.

5. ACCOUNTS RECEIVABLE

2026

2025

$202,093 101,809 303,902 (38,204) $265,698

Trade accounts receivable Other receivables

$366,716 30,999 397,715 (124,021) $273,694

Allowance for doubtful accounts

All amounts in the accounts receivable balance are short term. The net carrying value of accounts receivable is considered a reasonable approximation of fair value. All of the Corporation's trade and other receivables have been reviewed for indications of impairment. It is management's assessment that an allowance of $124,021 (2025 - $38,204) is required to fairly state the value of accounts receivable.

36 | PEICMC 2025-2026 Annual Report