PEI Cannabis 2023 Annual Report

OPERATIONAL OVERVIEW PEI Cannabis has a 3-year Strategic Plan which guides its activities through to fiscal 2022-2023. The accomplishment of strategic goals is supported by an annual business plan that detail corporate objectives to be accomplished, and measurable targets used to evaluate the degree to which corporate objectives are being met. The following is an overview of the performance in each of the four (4) strategic pillars. STRATEGIC TARGET • BUSINESS RESULTS STRATEGIC GOAL To become a key contributor to PEI’s general revenue through business excellence and the continuous improvement in operational effectiveness and efficiency. CORPORATE OBJECTIVES 1. Grow sales revenues to continuously grow a top-line base for profitability and government transfers; 2. Grow top-line profitability on cannabis products through tactful pricing and supplier relations; 3. Continuously build on the effectiveness and efficiency of cannabis operations through strategic resource deployment; and 4. Grow output of total kilogram (kg) sales of dried cannabis equivalent weight to displace the illicit market.

PERFORMANCE MEASURES

Actual 2021-2022

Target 2022-2023

Actual 2022-2023

% of Target 2022-2023

Target 2023-2024

Total Net Sales Revenue

$21,894,379

$23,500,000

$22,500,680

95.7%

$24,000,000

Gross Margin

25.4%

23.8%

27.1%

113.8%

25.5%

Net (Loss) Income

$2,609,580

$1,267,600

$2,909,096

$1,090,300

229.4%

Dried Cannabis Equivalent Sales General & Administrative Expenses

$5,510,400

$4,416,456

$6,108,500

80.1%

$4,182,171

3,800 kilograms

4,094 kilograms

4,100 kilograms

108%

3,600 kilograms

Application of Net Receipts

Net Receipts

Beverages

Concentrates

Recognition of Capital Assets

Accessories

1.52%

2.1%

0.34%

9.53%

Topicals

Edibles

0.28%

Operating Expenses

4.99%

19.12%

Seeds

0.08%

Ingested Extracts

4.52%

5.21%

Other Income

49.83%

Dried Flower

78.78%

23.7%

Pre-Rolled

Suppliers

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PEICMC 2022-2023 Annual Report