OPEI Canada Board Book 0625

Equip Exposition is the annual event dedicated to growing landscapers’, hardscapers’, manufacturers’, and dealers’ businesses.

OPEIC Board of Directors Meeting Stein Eriksen Lodge Deer Valley

Park City, UT June 26,2025 AGENDA

Call Meeting to Order

• Approval of Board Members: o Daniel Ariens

o Mike Clancy – beginning January, Frank Carroll o Rick Gray o Klaus Hahn o Peter Hampton o Chris Keffer o Brian Melka o Rick Olson o Andreas Rangert o David Thorne – beginning July, Jonathan Chase o Nelson Wilner

• Election of Officers:

o Rick Olson, The Toro Company - Chair o Chris Keffer, STHIL Inc.- Vice Chair o Harold Redman, Echo Inc. -Secretary / Treasurer

• Approval of the June 26, 2024, minutes • Approval of the 2024 Audited Financial Statements- Suzanne Shomers

• Financial Statements- April 30, 2025- Suzanne Shomers

• Stewardship Plan Updates- Brandon Martin • Approval of the Annual Report- Report to Ministry -Brandon Martin

Adjourn Meeting

Outdoor Power Equipment Institute of Canada

420 - 2238 YUKON ST, Vancouver, BC, V5Y 3P2

e: info@opeic.ca | p: 1.888.772.9772 | f: 604.592.2982

opeic.ca

OPEIC Board of Directors Meeting Ponte Vedra Inn & Club Ponte Vedra Beach, FL June 26,2024 DRAFT-Minutes

Present: Board Members: Mike Clancy, Chair

Chervon

David Thorne, Vice Chair

Deere & Company Briggs & Stratton STIHL Incorporated The Toro Company Echo Incorporated

Tom Rugg Chris Keffer Rick Olson

Harold Redman Nelson Wilner Doug Redpath

Kawasaki Motors Corp, USA Stanley, Black, & Decker

Dan Ariens

Ariens Company

Peter Hampton Active Dynamics Brian Melka, Immediate Past Chair-Phone Kohler Engines

Absent Board Members Rick Gray

Milwaukee Tools

Klaus Hahn

Greenworks

Andreas Rangert

Husqvarna Group

OPEI Staff: Kris Kiser

President & CEO

Chuck Bowen Greg Knott Brandon Martin Dan Mustico Suzanne Shomers Katen Williams Troy Winebrenner

Vice President, Communications and Member Relations Sr. Vice President, Standards & Regulatory Affairs Vice President, Battery & Electric Products, Industry Affairs

Sr. Vice President, Gov. & Market Affairs Vice President, Finance & Admin. Sr. Vice President, Partnership & Development

Show Manager

Evan Cox

Director of Marketing

Guests: David Nagle Suzanne Henry

Stites & Harbison

Four Leaf Public Relations

OPEIC Chair Clancey called the OPEI Canada meeting to order at 2:20 p.m. (1) The minutes of the June 22, 2023, meeting, Asheville, NC- Rick Olson moved to approved the June 2023 meeting minutes; Peter Hampton seconded. Approved. (2) Appointment of the board of directors: Nelson Wilner moved to approve the Board and election of officers. Harold Redman seconded. Approved.

• Board Members: Mike Clancy, Chair

Chervon

David Thorne, Vice Chair

Deere & Company Briggs & Stratton Stihl Incorporated The Toro Company Echo Incorporated

Tom Rugg Chris Keffer Rick Olson

Harold Redman Nelson Wilner Doug Redpath

Kawasaki Motors Corp, USA Stanley, Black, & Decker

Dan Ariens

Ariens Company

Peter Hampton Active Dynamics Brian Melka, Immediate Past Chair-Phone Kohler Engines Rick Gray Milwaukee Tools Klaus Hahn Greenworks Andreas Rangert Husqvarna Group

• Election of Officers-Effective at the conclusion of the June Meeting: David Thorne- Chair Rick Olson- Vice Chair Chris Keffer- Secretary/ Treasurer

(3) 2023 Audited Financial Statements Ms. Shomers reported that Rolfe, Benson of Vancouver, BC has completed its audit of OPEIC’s financial position as of December 31, 2023. The audit firm issued an unqualified or clean opinion. Overall OPEI Canada resulted in a gain of $5,323 to net assets bringing cumulative net assets to $2,728,709, which is still in excess of the maximum amount of the reserve funds allowable under the policy, which is defined as two years of operating expenses, efforts are in place to reduce. We have shown in the past two years to operate at a deficit. Tom Rugg moved to approved the 2023 Audited Financial Statements/Report. Harold Redman seconded. Approved. (4) OPEIC Program Update Mr. Martin gave an update on the program and the major change in the program will be a change in collection services from CESA to EPRA.

Dan Ariens moved to close the OPEI Canada meeting. Nelson Wilner seconded. Motion approved.

The meeting was adjourned at 2:45p.m.

FILE REFERENCE: 10535 REPLY TO: Andrew Westman

Outdoor Power Equipment Institute of Canada 1605 King Street, 3rd Floor Alexandria,VA 22314 To the Board of Directors: Re: Audit Findings

We are writing this letter in connection with our audit of the financial statements of Outdoor Power Equipment Institute of Canada ("OPEIC") for the year ended 31 December 2024. Management is responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting. This includes the design and maintenance of accounting records, recording transactions, selecting and applying accounting policies, safeguarding of assets and preventing and detecting fraud and error. Our purpose in writing is to ensure effective two-way communication between us in our role as auditors and yourselves with the role of overseeing the financial reporting process. Auditors' Responsibilities As stated in the engagement letter dated 3 March 2025, our responsibility as auditors of OPEIC is to express an opinion on whether the financial statements present fairly, in all material respects, the financial position, results of operations and cash flows of OPEIC in accordance with Canadian accounting standards for not-for-profit organizations. An audit is performed to obtain reasonable but not absolute assurance as to whether the financial statements are free of material misstatement. Due to the inherent limitations of an audit, there is an unavoidable risk that some misstatements of the financial statements will not be detected (particularly intentional misstatements concealed through collusion), even though the audit is properly planned and performed.

Outdoor Power Equipment Institute of Canada Page 2 Board of Directors' Responsibilities

The Board of Directors' role is to act in an objective, independent capacity as a liaison between the auditors and management, to ensure the auditors have a facility to consider and discuss governance and audit issues with parties not direct responsible for operations. The Board of Directors' responsibilities include:  Being available to assist and provide direction in the audit planning process when and where appropriate;  Meeting with the auditors as necessary and prior to release and approval of the financial statements to review audit, disclosure and compliance issues;  Where necessary, reviewing matters raised by the auditors with appropriate levels of management, and reporting back to the auditors their findings;  Making known to the auditors any issues of disclosure, corporate governance, fraud or illegal acts, non-compliance with laws or regulatory requirements that are known to them, where such matters may impact the financial statements or auditors' report;  Providing guidance and direction to the auditors on any additional work they feel should be undertaken in response to issues raised or concerns expressed;  Making such enquiries as appropriate into the findings of the auditors with respect to corporate governance, management conduct, cooperation, information flow and systems of internal controls; and  Reviewing the draft financial statements prepared by management, including the presentation, disclosure and supporting notes and schedules, for accuracy, completeness and appropriateness, and approve. Initial Planning Our audit approach begins with an extensive planning process that includes:

Assessing the current business and operating conditions;



 Understanding the composition and structure of your business and organization;  Understanding the accounting processes and internal controls;  Understanding the information technology systems;  Identifying potential engagement risks; and  Planning the scope and timing of substantive testing which take into account the specific identified engagement risks. Materiality Materiality is the magnitude of a misstatement (including an omission) in the financial statements or related disclosures that would affect the judgment of a reasonable person using those statements. As auditors, we are responsible for providing reasonable assurance that the financial statements are free from material misstatements.

Outdoor Power Equipment Institute of Canada Page 3 We have used an overall materiality of $19,600. Materiality for the prior year's audit was $19,900. This amount was used to:  Plan and perform the audit; and,  Evaluate the effects of identified and uncorrected misstatements on the audit procedures performed as well as on the financial statements. The materiality amount was reassessed prior to the end of the engagement to ensure it remained appropriate. Risk Assessment Our approach includes steps to provide for an ongoing identification of risks and is flexible to allow adjustment when additional risks are identified. Since these risks may impact our audit objectives, we consider materiality in our planning to focus on those risks that could be significant to you financial reporting. We compile information from a variety of sources to identify risks to OPEIC's financial reporting process that may require attention. Our preliminary risk assessment took into account:

Key business developments and transactions;



 Current business, regulatory and accounting pronouncements and developments;  Key management strategies and business plans;  Prior years' audit results; and  Areas of significant judgment and risk. Our audit planning activities and our preliminary identification of audit risks enables us to set the scope of our audit and to design audit procedures tailored to the identified risks to financial reporting. As we perform our audit, we will update our risk assessment and keep the Board of Directors and management informed of significant changes to our risk assessment and any additional significant risks that are identified. Consideration of the Risk of Fraud Fraudulent acts include the deliberate failure to record transactions, forgery of records and documents, and intentional misrepresentations to our audit engagement team. Fraud may include intentional acts by management or employees acting on behalf of OPEIC, as well as employee fraud if management or employees are involved in actions that defraud OPEIC. We do not assume that management is dishonest nor do we assume unquestioned honesty. Rather, in accordance with generally accepted auditing standards, we exercise professional skepticism and recognize that the conditions we observe and evidential matter we obtain, including that obtained from prior audit engagements, need to be objectively evaluated to determine whether the financial statements are presented fairly in all material respects.

Outdoor Power Equipment Institute of Canada Page 4

Maintaining an attitude of professional skepticism means that we carefully consider the reasonableness of the responses we receive to our inquiries from those charged with governance, and evaluate other information obtained from them in light of the evidence we obtain during the audit. We consider whether any misstatement or control deficiency that we identify may be indicative of fraud and what the implications of fraud and significant error are in relation to other aspects of the audit, particularly the reliability of management representations. It is management's responsibility to detect and prevent fraud. The Board of Directors has oversight responsibilities for management's efforts to create a strong internal control environment, including the design and implementation of anti-fraud programs and controls. During the audit, should we become aware that an act of fraud may have occurred, other than one considered clearly inconsequential, we will communicate this information directly to the Board of Directors. Audit Procedures We performed a substantive audit. Our substantive audit procedures consist of a tailored combination of analytical procedures and detailed tests of transactions and balances; these procedures take into account the results of our understanding of OPEIC's accounting processes and internal controls and are designed to enable us to obtain reasonable assurance that the financial statements are free from material misstatements. To obtain this assurance, the misstatements we identify while performing substantive auditing procedures will be considered in relation to the financial statements as a whole. Any misstatements that we identify, other than very small misstatements, will be reported to management and the Board of Directors. Significant Audit Risks

Our audit did not identify any areas which we considered as significant audit risks. Other audit risks, which were evaluated as part of the engagement were as follows: # Areas of Risk Our Audit Response

Our Conclusion

1 Management override of internal controls

We carried out procedures to gain an understanding of the OPEIC's internal control environment, including inquiries of management, review of journal entries and review of management estimates.

No issues to report.

This is a presumed fraud risk under the Canadian auditing standards, which often relates to the use of journal entries, estimates, related parties or unusual transactions.

Outdoor Power Equipment Institute of Canada Page 5 # Areas of Risk

Our Audit Response

Our Conclusion

2 Revenue recognition

We carried out procedures to gain an understanding of the OPEIC's internal control environment relevant to preventing loss of income and ensuring that income is recognized in the correct accounting period. We tested a sample of transactions to confirm that it was appropriate to recognize the income and that it had recorded in the correct accounting period.

No issues to report.

Auditing standards presume that there are risks of fraud in revenue recognition. These risks may arise from the use of inappropriate accounting policies, failure to apply the stated accounting policies or from an inappropriate use of estimates in calculating revenue.

Evaluation of Internal Controls To identify and assess the risks of material misstatement in the financial statements, we are required to obtain an understanding of internal control relevant to the audit. This understanding is used for the limited purpose of designing appropriate audit procedures. It is not used for the purpose of expressing an opinion on the effectiveness of internal control and, as a result, we do not express any such opinion. The limited purpose also means that there can be no assurance that all significant deficiencies in internal control, or any other control deficiencies, will be identified during our audit. A deficiency in internal control exists when a risk is not treated by a control or when a control is designed, implemented or operated in such a way that it is unable to prevent, or detect and correct, misstatements in the financial statements on a timely basis, or when a control necessary to prevent, or detect and correct, misstatements in the financial statements on a timely basis is missing. A significant deficiency in internal control is defined as a deficiency or combination of deficiencies in internal control that, in the auditor's professional judgment, is of sufficient importance to merit the attention of those charged with governance. During the course of our audit, we did not identify any control deficiencies that, in our judgment, would be considered significant deficiencies that we wish to bring to your attention. Comments on Accounting Practices Significant Accounting Principles Management is responsible for the appropriate selection and application of accounting policies. Our role is to review the appropriateness and application as part of our audit. The accounting policies used by OPEIC are described in Note 2, Summary of Significant Accounting Policies, in the financial statements.

Outdoor Power Equipment Institute of Canada Page 6

There were no significant changes in previously adopted accounting policies or their application. Significant Accounting Estimates Management is responsible for the accounting estimates included in the financial statements. Estimates and the related judgments and assumptions are based on management's knowledge of the business and past experience about current and future events. Our responsibility as auditors is to obtain sufficient appropriate evidence to provide reasonable assurance that management's accounting estimates are reasonable within the context of the financial statements as a whole. Management has advised us that there were no significant estimates recorded in the financial statements. Significant Financial Statement Disclosures We did not identify any financial statement disclosures that are particularly significant, sensitive or require significant judgments, that we believe should be specifically drawn to your attention. Significant Unusual Transactions There were no significant or unusual transactions identified during our audit. Disagreements with Management We are required to communicate any disagreements with management, whether or not resolved, about matters that are individually or in aggregate significant to the financial statements. We are pleased to inform you that we had no disagreements with management during the course of our audit. Consultation with Other Accountants Management may consult with other accountants about auditing and accounting matters to obtain a second opinion. In such cases, we are required to ensure that the accountant has knowledge of the facts and circumstances and has conducted the engagement in accordance with Canadian GAAS on the Reports on the Application of Accounting Principles. Management has informed us that OPEIC has not consulted with other accountants about auditing or accounting matters. Audit Adjustments and Uncorrected Misstatements Our audit of the financial statements was designed to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud.

Outdoor Power Equipment Institute of Canada Page 7 There were no audit adjustments that were identified during the course of our audit. Fraud, Errors and Illegal Acts Management have represented to us that they have not identified any fraud or illegal items and our audit procedures support this assessment. Litigation, Legal and Regulatory Compliance There were no significant litigation matters identified nor did our procedures identify any areas of material non-compliance with laws and regulations. Difficulties Encountered During the Audit We did not encounter any serious difficulties during our audit that should be brought to the attention of the Board of Directors. Subsequent Events Subsequent events are events occurring between the date of the financial statements and the date of the auditors' report, and facts that become known to the auditor after the date of the auditors' report. Management is responsible for assessing subsequent events up to the date the financial statements are approved by the Board of Directors. We are not aware of any significant subsequent events that affect the financial statements. Conclusion We intend to issue an unqualified Independent Auditors' Report on the financial statements of Outdoor Power Equipment Institute of Canada. This letter was prepared solely for the information of the Board of Directors and is not intended for any other purpose. The content should not be disclosed to any third party without our prior written consent, and we assume no responsibility to any other person. To ensure there is a clear understanding and record of the matters discussed, we ask that members of the Board of Directors sign their acknowledgement in the spaces provided below. Should any member of the Board of Directors wish to discuss or review any matter addressed in this letter or any other matters related to financial reporting, please do not hesitate to contact us at any time.

Yours truly,

ROLFE, BENSON LLP

Outdoor Power Equipment Institute of Canada Page 8

Acknowledgement of Board of Directors: We have read and reviewed the above and understand and agree with the comments therein:

Per:

Title:

Date:

Per:

Title:

Date:

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA FINANCIAL STATEMENTS 31 DECEMBER 2024

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Financial Statements For the year ended 31 December 2024 Contents

Independent Auditors' Report

Statement of Financial Position

Statement of Changes in Net Assets

Statement of Operations

Statement of Cash Flows

Notes to the Financial Statements

8 - 13

INDEPENDENT AUDITORS' REPORT

To the Members, Outdoor Power Equipment Institute of Canada Report on the Audit of the Financial Statements

Opinion We have audited the financial statements of Outdoor Power Equipment Institute of Canada ("OPEIC"), which comprise the statement of financial position as at 31 December 2024 and the statements of changes in net assets, operations and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of OPEIC as at 31 December 2024 and its results of operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of OPEIC in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information Management is responsible for the other information. The other information comprises information, other than the financial statements, our auditors' report thereon and the independent reasonable assurance report, in OPEIC's Annual Report. Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

INDEPENDENT AUDITORS' REPORT - Continued

We obtained the Annual Report prior to the date of this auditors' report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditors' report. We have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing OPEIC’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate OPEIC or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing OPEIC’s financial reporting process. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of OPEIC’s internal control.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

INDEPENDENT AUDITORS' REPORT - Continued

 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on OPEIC’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause OPEIC to cease to continue as a going concern.  Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, Canada

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Statement of Financial Position 31 December 2024

2024

2023

Assets

Current Cash

$ 1,772,587 $ 1,879,827

228,969 46,715

Term deposit (Note 4) Accounts receivable Prepaid expenses

217,486 65,668

6,616

6,547

2,054,887

2,169,528

Intangible asset (Note 6)

17,935 696,494

25,109 661,564

Reserve (Note 5)

$ 2,769,316 $ 2,856,201

Liabilities

Current Accounts payable and accrued liabilities (Note 7)

$ 128,417 $ 120,481

3,106

GST payable

7,011

131,523

127,492

Net Assets

Unrestricted

1,923,364 696,494

2,042,036 661,564

Internally restricted reserve (Note 5) Invested in intangible asset

17,935

25,109

2,637,793

2,728,709

$ 2,769,316 $ 2,856,201

APPROVED BY THE DIRECTORS:

Director

The accompanying notes are an integral part of these financial statements

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Statement of Changes in Net Assets For the year ended 31 December 2024

Internally Restricted Reserve

Invested in Intangible Asset

Total 2024

Total 2023

Unrestricted

Balance - beginning of year (Deficiency) excess of revenues over expenses for the year

$ 2,042,036 $ 661,564 $ 25,109 $ 2,728,709 $ 2,723,386

(90,916)

(83,742)

(7,174)

5,323

Transfer to

reserve (Note 5) - Balance - end of year $ 1,923,364 $ 696,494 $ 17,935 $ 2,637,793 $ 2,728,709 (34,930) 34,930 -

The accompanying notes are an integral part of these financial statements

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Statement of Operations For the year ended 31 December 2024

2024

2023

Revenues

$ 884,088 $ 925,138

Expenses Program administration (Notes 6 and 7) Collection, transportation and processing

455,956 398,759 219,671

426,001 297,023 270,080 993,104

Communications and events

1,074,386

Deficiency of revenues over expenses from operations

(190,298)

(67,966)

Other income

99,382

Interest income

73,289

(Deficiency) excess of revenues over expenses for the year

$ (90,916) $

5,323

The accompanying notes are an integral part of these financial statements

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Statement of Cash Flows For the year ended 31 December 2024

2024

2023

Cash provided by (used in): Operating activities (Deficiency) excess of revenues over expenses for the year

$ (90,916) $

5,323

Item not involving cash

7,174

Amortization of intangible asset

7,174 12,497

(83,742)

Changes in non-cash working capital balances Accounts receivable

18,953

(24,187) (500) (8,838) 19,486

(69)

Prepaid expenses

7,936 (3,905)

Accounts payable and accrued liabilities

GST payable

(60,827)

(1,542)

Investing activities

(34,930) (11,483) (46,413)

Transfer to reserve Purchase of term deposits

(21,754) (7,151) (28,905)

Net decrease in cash

(107,240)

(30,447)

Cash - beginning of year

1,879,827

1,910,274

Cash - end of year

$ 1,772,587 $ 1,879,827

The accompanying notes are an integral part of these financial statements

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Notes to the Financial Statements For the year ended 31 December 2024

Incorporation and nature of operations Outdoor Power Equipment Institute of Canada ("OPEIC") was incorporated under the Canada Not-for-profit Corporations Act on 15 February 2012 and commenced operations on 1 July 2012. OPEIC is a not-for-profit organization and it is not subject to income taxes providing certain requirements are met. OPEIC currently operates a stewardship program in the Province of British Columbia to assist the outdoor power equipment industry in discharging its obligation to establish end of life product collection and recycling programs under the British Columbia Recycling Regulations. Summary of significant accounting policies These financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations. The significant accounting policies are detailed as follows: (a) Revenue recognition Environmental Handling Fees (EHFs) are received from registered members that participate in OPEIC's programs. OPEIC recognizes these fees as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. EHF revenues are recognized as individual members report and remit them as required by OPEIC's membership agreement which is by the end of the month following the reporting period that the designated program materials were sold by the member. Members are obligated to remit EHFs for all products sold from the earlier of the programs’ start date or the date when the member started selling obligated products. If, for any reason, a member omits reporting and remitting EHFs associated with sold program products, OPEIC will recognize those EHFs as revenue when the amounts are determinable by OPEIC. Interest revenue is recognized on an accrual basis. (b) Cash and cash equivalents OPEIC's policy is to disclose bank balances under cash and cash equivalents, including bank overdrafts with balances that fluctuate frequently from being positive to overdrawn and term deposits with a maturity period of three months or less from the date of acquisition.

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Notes to the Financial Statements For the year ended 31 December 2024

Summary of significant accounting policies - Continued (c) Financial instruments (i) Measurement of financial instruments

OPEIC initially measures its financial assets and liabilities at fair value and subsequently measures all of its financial assets and financial liabilities at amortized cost. Financial assets measured at amortized cost include cash, term deposits, accounts receivable and the reserve. Financial liabilities measured at amortized cost include accounts payable and accrued liabilities. (ii) Impairment Financial assets measured at cost are tested for impairment when there are indicators of impairment. The amount of the write-down is recognized in the statement of operations. The previously recognized impairment loss may be reversed to the extent of the improvement, directly or by adjusting the allowance account, provided it is no greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously. The amount of the reversal is recognized in the statement of operations. (iii) Transaction costs OPEIC recognizes its transaction costs in the statement of operations in the period incurred. However, financial instruments that will not be subsequently measured at fair value are adjusted by the transaction costs that are directly attributable to their origination, issuance or assumption. (d) Intangible asset The intangible asset is recorded at cost. OPEIC provides for amortization using the following method at a rate designed to amortize the cost of the intangible asset over its estimated useful life. The annual amortization rate is as follows: ERP software 5 years straight line

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Notes to the Financial Statements For the year ended 31 December 2024

Summary of significant accounting policies - Continued (e) Impairment of long-lived assets

OPEIC tests long-lived assets for impairment when events or changes in circumstances indicate that their carrying value may not be recovered. When an intangible asset no longer contributes to the services provided by OPEIC its carrying amount is written down to its residual value. No impairment losses were determined by management to be necessary for the year. (f) Use of estimates The preparation of financial statements in accordance with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Accounts subject to estimates include accrued liabilities, revenue recognized for EHF's receivable and amortization of intangible assets. Actual results could differ from these estimates. (g) Foreign exchange Transactions denominated in foreign currencies are recorded in Canadian dollars at the exchange rate prevailing at the time of the transaction. Monetary assets and liabilities denominated in foreign currencies are converted to Canadian dollars at the exchange rate prevailing at year end. Exchange gains and losses are recorded in the statement of operations for the year. Financial instruments OPEIC is exposed to various risks through its financial instruments. The following analysis provides a measure of OPEIC's risk exposure and concentrations at the statement of financial position date, 31 December 2024. (a) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. OPEIC’s main credit risks relate to its cash, term deposits and accounts receivable. Cash and term deposits are in place with major financial institutions. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of members. OPEIC has evaluation and monitoring processes in place and writes off accounts when they are determined to be uncollectible. There has been no change to this risk exposure from the prior year.

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Notes to the Financial Statements For the year ended 31 December 2024

Financial instruments - Continued (b) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. OPEIC is exposed to this risk mainly in respect of its accounts payable and accrued liabilities. OPEIC maintains adequate cash to meet obligations as they become due. There has been no change to this risk exposure from the prior year. (c) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. OPEIC is exposed to currency and interest rate risk. (d) Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Consequently, some assets and liabilities are exposed to foreign exchange fluctuations. OPEIC does not utilize any derivative instruments to mitigate this currency risk. There has been no change to this risk exposure from the prior year. (e) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. OPEIC is exposed to interest rate risk on its fixed interest rate financial instruments. Fixed-rate instruments subject OPEIC to fair value risk. There has been no change to this risk exposure from the prior year. Term deposits OPEIC holds term deposits which bear interest at 4.74% per annum (2023 - 5.28%) and mature on 1 April 2025.

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Notes to the Financial Statements For the year ended 31 December 2024

Reserve In a previous year, the Board of Directors passed a resolution to establish the reserve fund. The purpose of the reserve fund is to ensure financial stability in case of unforeseen events such as:

Fluctuations in costs;



 The risk that OPEIC will be wound-up by the decision of the participants or as a consequence of regulatory change;  Claims against OPEIC, its Board of Directors, or staff in excess of OPEIC’s insurance coverage; and  To cover the cost of unanticipated or extraordinary items. Transfers to the reserve fund are made upon resolutions passed by the Board of Directors. Total contributions to the reserve fund are not to exceed two years' worth of expenses. The reserve fund consists of an investment in a term deposit and is independently managed. All income earned on the investment is initially reported in the unrestricted fund and then transferred to the reserve fund. During the year, $34,930 (2023 - $21,754) was transferred from unrestricted net assets to the reserve fund, representing the investment income earned on the term deposit. 6. Intangible asset

Accumulated Amortization

2024 Net

2023 Net

Cost

ERP Software $ 35,870 $ 17,935 $ 17,935 $ 25,109 Included in program administration expenses is $7,174 (2023 - $7,174) of amortization expense. 7. Related party transactions OPEIC is related to Outdoor Power Equipment Institute (OPEI), an organization incorporated in the United States, through a common Board of Directors. During the year, program administration services of $113,838 (2023 - $95,234) were provided by OPEI to OPEIC. These transactions are in the normal course of operations and have been valued in these financial statements at the exchange amount which is the amount of consideration established and agreed to by the related parties. Included in accounts payable and accrued liabilities is $8,241 (2023 - $8,493) due to OPEI for program administration services. This amount is unsecured, non-interest bearing and is subject to normal trade payable payment terms.

OUTDOOR POWER EQUIPMENT INSTITUTE OF CANADA Notes to the Financial Statements For the year ended 31 December 2024

Common control By virtue of a common Board of Directors, OPEIC and OPEI are under common control. OPEI has not been consolidated in OPEIC's financial statements. OPEI's year end is 31 August and its financial statements are prepared in accordance with US generally accepted accounting principles FASB ASU 2016-14, Presentation of Financial Statements for Not-for-Profit Entities. The financial summary as at 31 August 2024 and for the year then ended are based on the audited financial statements. All amounts are presented in US dollars. OPEI 31 August 2024 31 August 2023 Financial Position Total assets $ 23,435,104 $ 21,399,457 Total liabilities 12,107,020 11,629,928 Total net assets 11,328,084 9,769,529 $ 23,435,104 $ 21,399,457 31 August 2024 31 August 2023 Results of Operations Total revenues $ 11,920,546 $ 9,975,791 Total expenses 10,361,991 8,513,006 Excess of revenue over expenses $ 1,558,555 $ 1,462,785

31 August 2024

31 August 2023

Cash Flows Cash flows from Operating activities Cash flows from Investing activities

$ 2,369,354 $ 2,466,482

(436,747)

(122,826)

$ 1,932,607 $ 2,343,656

Increase in cash

OPEIC Program Dashboard Report

EHFs by month - Actual Reported vs. Budget ($)

$250,000

$200,000

$150,000

Actuals Budget

$100,000

$50,000

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Actuals Budget

$ 157,379 $ 179,723

$ $

42,231 $ 29,731 $

17,868 $ 32,512 $

27,760 $ 41,195 $

69,521 76,285

Budget Variance

42.0% -45.0% -32.6% -8.9%

-12.4%

YTD Units by Category Analysis

Units Sold by Posting Period

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000

Actuals YTD Units Sold

Budget YTD Units Sold

Budget Variance (%)