Big Rock Brewery Inc. is a Calgary-based producer of premium, all-natural craft beers and other alcoholic beverages, which are sold in six provinces and two territories in Canada. Exhibit 10.16 is an excerpt from Note 26 from the company’s 2020 annual report detailing the company’s commitments.

Required
Explain this note in your own words. Be sure to discuss the financial statement impacts, if any, of these contracts and the financial statement impacts they will have in future years.

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BIG ROCK BREWERY INC. Notes to the Consolidated Financial Statements (All tabular amounts are in thousands of Canadian dollars, unless otherwise stated) 26. Commitments and Contractual Obligations Big Rock has entered into various commitments for expenditures over the next five years: 2021 2022 2023 2024 $ 30 $ - $ - $ - 1,962 1,472 339 211 Utilities contracts Raw material purchase commitments Marketing sponsorships Total 239 108 $2,231 $1,580 $339 $211 2025 thereafter $- $- $- $-