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Island Media Arts Co-operative Ltd.(operating as Film PEI)Financial Statements(Unaudited)March 31, 2021September 1, 2021 10:00:23 AM

, 2021Independent Practitioner's Review Engagement ReportTo the Members of Island Media Arts Co-operative Ltd.We have reviewed the accompanying financial statements of Island Media Arts Co-operative Ltd. thatcomprise the statement of financial position as at March 31, 2021, and the statements of operations, changein net assets and cash flows for the year then ended, and a summary of significant accounting policies andother explanatory information.Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Canadian accounting standards for not-for-profit organizations, and for such internal controlas management determines is necessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.Practitioner's ResponsibilityOur responsibility is to express a conclusion on the accompanying financial statements based on our review.We conducted our review in accordance with Canadian generally accepted standards for reviewengagements, which require us to comply with relevant ethical requirements.A review of financial statements in accordance with Canadian generally accepted standards for reviewengagements is a limited assurance engagement. The practitioner performs procedures, primarily consistingof making inquiries of management and others within the entity, as appropriate, and applying analyticalprocedures, and evaluates the evidence obtained.The procedures performed in a review are substantially less in extent than, and vary in nature from, thoseperformed in an audit conducted in accordance with Canadian generally accepted auditing standards.Accordingly, we do not express an audit opinion on these financial statements.ConclusionBased on our review, nothing has come to our attention that causes us to believe that the financial statementsdo not present fairly, in all material respects, the financial position of Island Media Arts Co-operative Ltd. asat March 31, 2021, and the results of its operations and its cash flows for the year then ended in accordancewith Canadian accounting standards for not-for-profit organizations.Chartered Professional Accountants(1)September 1, 2021 10:00:23 AM

Island Media Arts Co-operative Ltd.Statement of Financial Position(Unaudited)As at March 31, 20212021 2020 ,906122,75459,967453,273389,873AssetsCurrent assetsCashAccounts receivable (note 3)Prepaid expensesCapital assets (note 4)LiabilitiesCurrent liabilitiesAccounts payable and accrued liabilitiesDeferred revenue (note 5)Long-term debt, less government assistance (note 6)Deferred capital contributions (note 7)Net AssetsApproved by the Board of DirectorsDirectorDirector(2)September 1, 2021 10:00:23 AM

Island Media Arts Co-operative Ltd.Statement of Changes in Net Assets(Unaudited)For the year ended March 31, 20212021 2020 Net assets - Beginning of year59,96739,367Excess revenue for the year62,78720,600Net assets - End of year122,75459,967(3)September 1, 2021 10:00:23 AM

Island Media Arts Co-operative Ltd.Statement of Operations(Unaudited)For the year ended March 31, 20212021 2020 50,169535,599458,222RevenueProject revenues (Schedule)Federal government operating grantsProvincial government grantsEquipment rentalsMembershipsWorkshops and miscellaneousDonationsSponsorshipsWage subsidiesAmortization of deferred capital contributionsExpensesProject expenses (Schedule)Equipment and productionHonorariaInsuranceInterest and bank chargesMarketingOffice and miscellaneousProfessional feesRentTelephoneTravel and entertainmentWages and benefitsAmortizationOperating earnings (loss)(7,201)20,600Other incomeGovernment assistance - COVID funding69,988-Excess revenue for the year62,78720,600(4)September 1, 2021 10:00:23 AM

Island Media Arts Co-operative Ltd.Statement of Cash Flows(Unaudited)For the year ended March 31, 20212021 2020 7469,28230,0006,22766,16336,22766,163Purchase of capital assets(11,787)(66,163)Increase in cash106,51469,282Cash - Beginning of year141,61172,329Cash - End of year248,125141,611Cash provided by (used in)Operating activitiesExcess revenue for the yearItems not affecting cashAmortizationAmortization of deferred capital contributionsNet change in non-cash working capital itemsDecrease (increase) in accounts receivableIncrease in prepaid expensesIncrease in accounts payable and accrued liabilitiesIncrease (decrease) in deferred revenueFinancing activitiesIncrease in long-term debt (net)Increase in deferred capital contributionsInvesting activity(5)September 1, 2021 10:00:23 AM

Island Media Arts Co-operative Ltd.Notes to Financial Statements(Unaudited)March 31, 20211Purpose of the organizationIsland Media Arts Co-operative Ltd. is a not-for-profit organization incorporated without share capital underthe laws of the Province of Prince Edward Island, and is exempt from income taxes. Island Media Arts Cooperative Ltd.'s principal business activity includes assisting local artists by providing services and programsto help them achieve their objectives.2Summary of significant accounting policiesBasis of accountingThese financial statements have been prepared in accordance with Canadian accounting standards for not-forprofit organizations. These financial statements include the following significant accounting policies:CashCash consists of the organization's bank account balances and cash on hand.AmortizationCapital assets are recorded at cost less accumulated amortization. Amortization is calculated using thedeclining balance method at the following annual rates:RateEquipmentComputer equipmentCamera equipmentFurniture and fixturesSound equipment20%30%30%20%30%Amortization is calculated at one-half of the normal annual rate in the year of acquisition; no amortization isrecorded in the year of disposal.Government assistanceGovernment assistance related to purchase of capital assets is recorded as deferred capital contributions andamortized on the same basis as the related capital assets Government assistance related to operating expensesis recorded as revenue as the related expenses are incurred.Revenue recognitionRevenue is recognized using the deferral method of accounting for contributions. Restricted contributions arerecognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions arerecognized as revenue when received or receivable if the amount to be received can be reasonably estimatedand collection is reasonably assured.(6)September 1, 2021 10:00:23 AM

Island Media Arts Co-operative Ltd.Notes to Financial Statements(Unaudited)March 31, 2021Use of estimatesThe preparation of these financial statements in conformity with Canadian accounting standards for not-forprofit organizations requires management to make estimates and assumptions that affect the reported amountof assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statementsand the reported amounts of revenues and expenses during the current period. Significant items subject tosuch estimates and assumptions include the valuation of accounts receivable and the estimated useful life ofcapital assets. These estimates are reviewed periodically and adjustments are made to income as appropriate inthe year they become known.Since January 31, 2020, the outbreak of COVID-19 (coronavirus) has resulted in governments worldwideenacting emergency measures to combat the spread of the virus. These measures have caused materialdisruption to businesses globally resulting in an economic slowdown, and global equity markets haveexperienced significant volatility. The duration and impact of the COVID-19 outbreak is unknown at this time,as is the outcome of government and central bank interventions.In management's estimation, these events have not had a material unrecorded impact on the carrying value ofassets and liabilities reported in these financial statements as at March 31, 2021. The duration and impact ofthe COVID-19 pandemic remains unclear at this time. Therefore, it is not possible to reliably estimate theduration and severity of these consequences, as well as their impact on the financial position and results of theorganization for future periods.Financial instruments(a)Measurement of financial instrumentsIsland Media Arts Co-operative Ltd.'s financial instruments consist of cash, accounts receivable,accounts payable and accrued liabilities and long-term debt.The organization initially measures its financial assets and financial liabilities at fair value adjusted by,in the case of a financial instrument that will not be measured subsequently at fair value, the amount oftransaction costs directly attributable to the instrument. This fair value amount is then deemed to bethe amortized cost of the financial instrument.The organization subsequently measures all its financial assets and financial liabilities at amortizedcost.(7)September 1, 2021 10:00:23 AM

Island Media Arts Co-operative Ltd.Notes to Financial Statements(Unaudited)March 31, 2021(b)ImpairmentFor financial assets measured at cost or amortized cost, the organization determines whether there areindications of possible impairment. When there is an indication of impairment, and the organizationdetermines that a significant adverse change has occurred during the period in the expected timing oramount of future cash flows, a write-down is recognized in excess revenue. A previously recognizedimpairment loss may be reversed to the extent of the improvement. The carrying amount of thefinancial asset may not be greater than the amount that would have been reported at the date of thereversal had the impairment not been recognized previously. The amount of the reversal is recognizedin excess revenue.(c)RisksTransacting in financial instruments exposes the organization to certain financial risks anduncertainties. These risks include:3i)Credit risk: The organization is exposed to credit risk in connection with the collection of itsaccounts receivable. The organization mitigates this risk by performing continuous evaluationof its accounts receivables.ii)Liquidity risk: The organization's exposure to liquidity risk is dependent on the collection ofaccounts receivable or raising of funds to meet commitments and sustain operations. Theorganization controls liquidity risk by management of working capital and cash flows.Accounts receivableTrade accounts receivableGovernment contributions receivableHST receivable(8)September 1, 2021 10:00:23 AM2021 2020 24,60417,9807,30227,00920,5429,43949,88656,990