CITY OF CHILLIWACK 2025 Annual Report 114 115 2025 Annual Report CITY OF CHILLIWACK TOURISM CHILLIWACK INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2025 TOURISM CHILLIWACK INC. Notes to Consolidated Financial Statements (continued) Year ended December 31, 2025 3. Tangible capital assets: 2025 2025 Opening Closing Cost Additions Disposals Cost Furniture and fixtures $ 70,578 $ 2,067 $ - $ 72,645 Computers 104,159 2,341 - 106,500 Leasehold Improvements 127,915 28,998 - 156,913 Website 124,750 58,770 - 183,520 $ 427,402 $ 92,176 $ - $ 519,578 2025 Opening 2025 Closing Accumulated Amortization Accumulated Amortization Disposals expense Amortization Furniture and fixtures 65,547 - 1,601 67,148 Computers 90,860 - 4,329 95,189 Leasehold Improvements 127,080 - 8,951 136,031 Website 113,993 - 30,412 144,405 $ 397,480 $ - $ 45,293 $ 442,773 2025 Opening 2025 Closing Net book value Net book value Computer software $ - $ - Furniture and fixtures 5,031 5,497 Computers 13,299 11,311 Leasehold Improvements 835 20,882 Website 10,757 39,115 $ 29,922 $ 76,805 7 TOURISM CHILLIWACK INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2025 TOURISM CHILLIWACK INC. Notes to Consolidated Financial Statements (continued) Year ended December 31, 2025 4. Share capital: 2025 2024 Authorized: Unlimited common shares Issued with no par value: 100 Common shares $ 1 $ 1 5. Related party transactions and economic dependence: During the year, the City of Chilliwack (the "City") provided funds under operating agreements totaling $595,000 (2024 - $595,000) to the Company. The City has agreed to provide future annual operating funds based on a pre-determined formula. In addition, the Company had other sales transactions with the City in the aggregate amount of $133,772 (2024 - $95,431) and purchased services from the City totaling $17,782 (2024 - $325,359). All transactions with the City are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the parties. During the year the Company had sales of $24,834 (2024 - $29,361) and made purchases of goods and services of $40,657 (2024 - $41,822) with entities that have an individual on the Company's board of directors. These transactions were on the same terms and conditions as transactions with other parties. 6. Financial risks: The Company is exposed to financial risks from its use of financial instruments. Management does not believe that the Company's financial instruments are exposed to significant liquidity risk. Market risk is the risk that changes in market prices, such as interest rates, will affect the Company’s income. The Company's cash and term deposits include amounts on deposit with financial institutions that earn interest at market rates. The Company manages its cash by maximizing the interest income earned on excess funds while maintaining the liquidity necessary to conduct operations on a day-to-day basis. Fluctuations in market rates of interest would not have a significant effect on the Company's income. 8
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