PEI Cannabis 2023 Annual Report

PRINCE EDWARD ISLAND CANNABIS MANAGEMENT CORPORATION Notes to Financial Statements Year Ended March 31, 2023

5. ACCOUNTS RECEIVABLE

2023

2022

$ 251,831

Trade accounts receivable

$ 299,372

126,955

Other receivables

233,396

$ 378,786 $ 532,768 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 $0 is required to fairly state the value of accounts receivable.

6. INVENTORY

2023

2022

$ 2,152,960 1,384,531

Warehouses

$ 1,150,607

Stores

934,455

$ 3,537,491 $ 2,085,062 Inventories recognized in the statement of financial position consist of cannabis products and accessories held for sale. In 2023, a total of $16,400,816 (2022 - $16,330,772) of inventories was included in the statement of profit or loss as a cost of sales. The write-downs of inventories during fiscal 2023 is $Nil (2022 - $Nil). None of the inventories are pledged as security for liabilities.

7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

2023

2022

$ 2,567,861

Accounts payable and accrued liabilities Prince Edward Island Liquor Control Commission

$ 3,174,700

243,255 38,932

305,595 38,006

HST payable

$ 2,850,048

$ 3,518,301

Included in accounts payables and accruals is $176,454 (2022 - $54,415) owing to the Province of Prince Edward Island, a related party, for accrued vacation and wage settlement amounts. The payable from the Prince Edward Island Liquor Control Commission consist primarily of accruals to account for the shares use of resources of the Commission and is based on a best estimate of the cost of those resources used.

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PEICMC 2022-2023 Annual Report

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