PEICMC Annual Report 2026

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

15. FINANCIAL INSTRUMENTS (continued) The carrying amounts presented in the statement of financial position relate to the following categories of financial assets and liabilities: Financial assets Financial asset measured at amortized cost Accounts receivable Financial asset measured at fair value through profit or loss Cash 2026

2025

$273,694 273,694 1,632,193 $1,905,887

$265,698 265,698 2,799,275 $3,064,973

Financial liabilities Other financial liabilities measured at amortized cost Non-current Lease liabilities Current Accounts payable and accrued liabilities Current portion of lease liabilities Due to Province of Prince Edward Island

2026

2025

$1,100,748 1,100,748 2,625,389 238,800 4,016,710 6,880,899 $7,981,647

$1,287,858 1,287,858 3,197,907 238,800 4,062,277 7,498,984 $8,786,842

16. FAIR VALUE Financial assets and liabilities are measured at fair value on initial recognition except for certain related party transactions. Measurement in subsequent periods is based on fair value through profit and loss or at amortized cost using the effective interest rate method. Financial assets and liabilities recorded in the statement of financial position at fair market value are categorized based on the fair value hierarchy of inputs. The Level 1 hierarchy is unadjusted quoted prices in active markets for identical assets and liabilities. This level of inputs is used to measure the fair value of cash. Fair value for accounts receivable, accounts payable and accrued liabilities, amounts due to/from related parties approximate their carrying amounts due to their short term natures. The fair value of lease liabilities are not materially different from their carrying value as there has not been a significant fluctuation in interest rates.

40 | PEICMC 2025-2026 Annual Report