Core Viewpoint - Pineapple Financial Inc. has successfully closed a public offering, raising gross proceeds of $1,500,000 through the sale of 10,000,000 units at a price of $0.15 per unit, each unit consisting of one common share and one warrant [1][3]. Group 1: Offering Details - The public offering consisted of 10,000,000 units priced at $0.15 each, resulting in total gross proceeds of $1,500,000 before fees and expenses [1]. - The offering was conducted under an effective registration statement filed with the SEC, which was declared effective on May 1, 2025 [3]. - D. Boral Capital LLC served as the exclusive placement agent for the offering, while legal counsel was provided by Sichenzia Ross Ference Carmel LLP for the Company and Lucosky Brookman LLP for D. Boral Capital LLC [2]. Group 2: Company Overview - Pineapple Financial Inc. is a prominent Canadian mortgage technology and brokerage firm, focused on enhancing the mortgage experience for brokers, lenders, and clients [5]. - The company offers advanced tools, marketing automation, analytics, and proprietary technology aimed at simplifying the mortgage process [5]. - Pineapple is committed to innovation and aims to set a new standard for excellence within the mortgage industry [5].

Core Viewpoint - Pineapple Financial Inc. has announced a public offering of 10,000,000 units at a price of $0.15 per unit, each unit consisting of one share of common stock and one warrant to purchase an additional share [1][2]. Group 1: Offering Details - The offering is expected to close on or about May 5, 2025, subject to customary closing conditions [2]. - D. Boral Capital LLC is acting as the Exclusive Placement Agent for the offering [2]. - The offering is conducted under the Company's registration statement on Form S-1, which was declared effective by the SEC on May 1, 2025 [3]. Group 2: Company Overview - Pineapple Financial Inc. is a leading Canadian mortgage technology and brokerage firm focused on enhancing the mortgage process for brokers, lenders, and clients [5]. - The company provides advanced tools, marketing automation, analytics, and proprietary technology aimed at simplifying the mortgage experience [5]. - Pineapple is committed to innovation and aims to set a new standard for excellence in the mortgage industry [5].

Financial Performance - The company originated $690.002 million in residential mortgage loans during the six-month period ended February 28, 2025, representing a 17.61% increase compared to $568.521 million in the same period the previous year [91]. - The net loss for the period was $1.166 million, an improvement of 24.33% from a net loss of $1.541 million in the six months ended February 29, 2024 [92]. - Gross billing revenue increased to $9.33 million, up 15.23% from $8.09 million for the same period in the prior year [107]. - Revenue for the period increased to $1.51 million, representing an 11.78% increase year-over-year from $1.35 million [109]. - The net loss for the period was $1,253,990, compared to $1,530,696 in the six months ended February 29, 2024, indicating improved operational scaling while investing in revenue-generating activities [147]. Expenses and Costs - Commission expense rose to $7.81 million, reflecting a 15.92% increase from $6.74 million in the prior-year period [108]. - Operating expenses decreased by 3.48% to $2.81 million compared to $2.91 million in the previous year [105]. - The company experienced a significant increase in interest expense and bank charges, rising by 448.93% to $273,812 [105]. - Commission expense rose by 20.40% to $3.78 million, attributed to reliance on high-volume agents [113]. - Selling, general, and administrative expenses totaled $995,190, representing a 3.56% decrease compared to the prior year [117]. - Software subscription expenses increased by $47,556 (11.82%) to $449,845, reflecting ongoing investment in digital infrastructure [118]. - Interest expense and bank charges surged by 448.93% to $273,812, primarily due to higher borrowing costs [139]. - Depreciation expense rose by 36.32% to $429,645, driven by investments in proprietary technology [140]. - Dues and subscription expenses increased by 163.50% to $164,917, reflecting expanded access to industry platforms [131]. - Travel expenses declined by 96.63% to $2,925, attributed to cost control measures and a shift to virtual collaboration [134]. - Government incentive income decreased by 39.60% to $48,518, due to the transition to public company status [141]. Cash Flow and Liquidity - For the six-month period ended February 28, 2025, net cash used in operating activities was $836,228, a significant improvement from $1,566,642 in the prior-year period, reflecting enhanced operational efficiencies and disciplined working capital management [146][149]. - Net cash provided by financing activities amounted to $1,226,321, down from $2,751,937 in the same period of the prior year, attributed to reduced financing proceeds despite continued access to capital [150]. - As of February 28, 2025, the Company had cash and cash equivalents of $493,607, a decrease from $1,339,618 at the end of the same period last year, primarily due to investments in technology and working capital [153]. - Management remains focused on maintaining sufficient liquidity to support operational needs and strategic priorities, evaluating opportunities for both non-dilutive and equity-based financing [154]. Investments and Acquisitions - The Company invested in MCommercial, acquiring 5% of the total issued shares, enhancing product offerings and service levels for residential mortgage agents [169]. - The Company also acquired 5% of the total issued shares of Mortgage Alliance Corporation, expanding its presence in the mortgage brokerage sector [170]. - The total value of both investments was recorded at fair value, with any impairment loss recognized in the profit and loss account [171]. Foreign Exchange and Financial Instruments - The company reported a foreign exchange gain of $4,021, compared to a loss of $12,685 in the previous period, reflecting favorable currency fluctuations [150]. - The fair value of cash is categorized as Level 1 at $493,607, while investments are categorized as Level 3 at $9,365 [185]. - The company does not face interest rate risk as it has no variable-rate loans or borrowings [188]. Shareholder and Stock Information - A 1-for-3.9 reverse stock split was completed on July 6, 2023, retroactively adjusting all share numbers and prices [177]. - The company has established a share option plan to attract and retain qualified personnel, reserving 10% of issued common shares for grants [175]. - Stock options granted on June 14, 2021, had a fair value of $1,317,155 and were fully vested by August 31, 2023 [176]. Internal Controls and Operational Improvements - The company is enhancing its internal controls, including hiring skilled staff and establishing approval processes for transactions [178]. - The company is focused on enhancing profitability through selective onboarding of high-margin agents and reallocating resources to more profitable channels [109]. Receivables and Trade Information - Trade and other receivables as of February 28, 2025, amounted to $177,781, compared to $155,224 on August 31, 2024 [192]. - The company has $57,750 in trade receivables that are greater than 90 days outstanding as of February 28, 2025, up from $36,740 on February 29, 2024 [190].

Financial Performance - The company generated $424.076 million in residential mortgage loans for the three months ending November 30, 2024, reflecting a 9.64% increase from $386.777 million in the same period of 2023[96]. - Gross billing revenue increased by 5.05% from $4.560 million for the three-month period ending November 30, 2023, to $4.791 million for the same period in 2024[108]. - Revenue for the three-month period ending November 30, 2024, rose to $766,074, a 34.55% increase from $569,355 in the same period of 2023, driven by a strategic focus on high-margin agents[109]. - The company's net loss decreased to $0.657 million for the three months ending November 30, 2024, compared to a loss of $0.898 million in the corresponding period of 2023[96]. - Net cash used in operating activities decreased to $663,597, compared to $1,022,782 in the prior period[126]. - Revenue for the year saw a notable increase, reflecting the Company's ability to attract new clients and retain existing ones[127]. Expenses and Cost Management - Selling, general, and administrative expenses decreased by 25.48%, from $560,151 for the three months ending November 30, 2023, to $417,406 for the same period in 2024[111]. - Software subscription expenses increased by 21.55%, from $180,920 during the three months ended November 30, 2023, to $219,908 during the same period in 2024[112]. - Dues and subscriptions decreased by $8,431 (21.06%), from $40,031 during the three months ended November 30, 2023, to $31,600 during the three months ended November 30, 2024[115]. - Consulting fees saw a significant reduction of $156,634 (94.18%), decreasing from $166,313 to $9,679 during the same period[116]. - Travel expenses declined by $18,588 (47.45%), from $39,177 to $20,589[117]. - Advertising and marketing expenses increased by $139,539 (104.55%), rising from $133,470 to $273,009[119]. - Salaries, wages, and benefits fell by $207,908 (32.27%), from $644,273 to $436,365[120]. Market and Operational Insights - The mortgage origination market remains constrained compared to pre-2022 levels, despite signs of recovery due to renewed consumer confidence[95]. - Approximately 40% of the deals originated by users utilized the expert risk pre-assessment service, which is aimed at increasing deal volume and improving service offerings[101]. - The underwriting revenue for the three-month period ending November 30, 2024, was $27,343, down from $42,106 in the same period of 2023[98]. - The company experienced a significant rise in interest expense and bank charges, increasing by 715.18% to $174,505 for the three months ending November 30, 2024[107]. Investments and Acquisitions - The Company raised $1.00 million through the issuance of shares and secured a short-term loan of $525,000 during the three months ended November 30, 2024[128][129]. - The Company allocated $282,298 toward the development of proprietary software aimed at enhancing mortgage application processing efficiency[130]. - The company invested in MCommercial, acquiring 5% of total issued shares, enhancing product offerings and corporate revenue through increased transactions[149]. - The company entered a share purchase agreement to acquire 5% of Alliance, a mortgage brokerage firm, expanding its presence in Ontario and other Canadian cities[150]. Financial Position and Risk Management - As of November 30, 2024, the Company's cash balance stood at $619,581, a decrease from $2,341,537 as of November 30, 2023[131]. - As of November 30, 2024, cash holdings increased to $619,581 from $580,356 on August 31, 2024, while trade and other receivables rose to $182,526 from $155,224[172]. - As of November 30, 2024, $37,800 of trade receivables were over 90 days outstanding, a significant increase from $2,572 on November 30, 2023, indicating rising credit risk[170]. - The company faces credit risk primarily from trade receivables, with maximum exposure approximating the carrying value of assets on the consolidated statements[171]. - The company has no exposure to interest rate risk as it does not have variable-rate loans or borrowings[168]. Corporate Governance and Internal Controls - The company has initiated steps to enhance internal controls, including hiring skilled staff and establishing approval processes for transactions[158][160]. - The fair value of stock options granted was $1,317,155, fully vested by August 31, 2023, with a share option plan reserving 10% of common shares for grants[156][155]. - The company completed a 1-for-3.9 reverse stock split on July 6, 2023, retroactively adjusting share numbers and prices in financial statements[157].

Core Findings - PineappleONE platform adoption led to a 22.72% increase in loan origination, reaching $377 million in Q3 fiscal 2024 [1][3] - Brokers using PineappleONE experienced a 32% reduction in deal processing time due to advanced automation features [3] - Revenue increased by 20.43% in Q3 fiscal 2024, reaching $736,448 compared to $603,231 in the same period last year [4] Efficiency and Revenue Growth - Brokers fully adopting PineappleONE saw individual loan volumes increase by an average of 28% [6] - Top-performing brokers reported a 37.5% reduction in time spent per transaction [6] - Increased efficiency led to higher client satisfaction, referral rates, and repeat business [6] Platform Features and Impact - PineappleONE's automation capabilities include document management, automated lender submissions, and real-time client updates [4] - The platform has set a new standard in the mortgage industry by enhancing broker productivity and client outcomes [7] Future Plans and Innovation - Pineapple Financial plans to introduce AI-driven tools to optimize lead management and client retention [8] - The company aims to further enhance PineappleONE with additional features to increase automation and broker support [8] Company Overview - Pineapple Financial Inc is a leading Canadian fintech company with approximately 700 brokers in its network [9] - The company focuses on creating cutting-edge cloud-based tools and AI-driven systems to support brokers and homeowners [9]

Core Insights - Pineapple Financial Inc. has expanded its affiliate network by adding six new mortgage brokerages in Ontario, Canada, enhancing its market reach and service capabilities [1][2][5] - The affiliate network accounted for 36.8% of Pineapple's total funded volume and revenue in the 2023 fiscal year, indicating a significant contribution to the company's financial performance [2] - The company aims to leverage AI-driven technology to streamline mortgage processes and deliver personalized solutions to clients [5][6] Company Overview - Pineapple Financial is a tech-focused mortgage brokerage with a network of approximately 700 brokers across Canada, emphasizing long-term success for agents and brokerages [7] - The company provides a platform that allows mortgage brokers to operate independently or as affiliate partners, thus retaining their brand while accessing Pineapple's tools and services [1][2] New Affiliates - The six new brokerages joining the network are CRE Capital Canada, Top Notch Financial, Tailored Finance Inc., PrimeRock Capital Corp., Reign Mortgage Group Inc., and Newcastle Financial, each bringing expertise in serving clients' mortgage needs [3][4][8] - The addition of these brokerages is expected to drive significant growth in revenue and volume for Pineapple in 2024 [2][6]

Financial Performance - Mortgage volume increased to $314.96 million for the three months ended February 29, 2024, compared to $267.90 million for the same period in 2023, representing a 17.55% increase[13] - Net sales revenue rose to $343,305 for the three months ended February 29, 2024, from $207,081 in the same period last year, marking a significant increase of 65.96%[13] - Total revenue, net for the six months ended February 29, 2024, was $1.35 million, a slight increase of 1.36% from $1.33 million for the same period in 2023[15] - Sales revenue decreased from $8.46 million in the six months ending February 28, 2023, to $8.09 million in the six months ending February 29, 2024, representing a 4.39% decline[22] - The company experienced a net loss attributable to Pineapple Financial of $(1.53) million for the six months ended February 29, 2024, compared to a net loss of $(1.40) million for the same period in 2023[16] - The company’s adjusted EBITDA for the six months ended February 29, 2024, was $(1.11) million, compared to $(67,185) for the same period in 2023[16] Expenses and Cost Management - General and administrative expenses decreased by $72,135 from $1,104,082 during the six months ending February 28, 2023, to $1,031,947 during the six months ending February 29, 2024, a decrease of 6.53%[27] - Salaries, wages, and benefits decreased to $1.19 million for the six months ended February 29, 2024, from $1.27 million for the same period in 2023, reflecting a 6.92% reduction[31] - Advertising and marketing expenses decreased to $404,017 during the six months ending February 29, 2024, compared to $469,321 during the previous six months, a decrease of 13.92%[30] - Stock-based compensation expense was recognized as $0 for the six months ended February 29, 2024, compared to $33,041 for the same period in 2023[53] Cash and Liquidity - As of February 29, 2024, the cash balance was $1,339,618, a significant increase from $79,976 on February 28, 2023[40] - The Company has a liquidity position of $1.340 million in cash and cash equivalents, but liquidity is under pressure due to operational expansion and technology investments[41] - As of February 29, 2024, the Company reported total cash of $1,339,618 and an investment valued at $9,984 under Level 3 fair value measurements[63] Investments and Shareholder Actions - The Company issued 875,000 shares through an initial public offering at $4.00, receiving $2.752 million after expenses[39] - The Company invested in a commercial mortgage firm, MCommercial, representing 5% of total issued shares, enhancing product offerings and revenue potential[49] - A 1-for-3.9 reverse stock split was completed on July 6, 2023, retroactively adjusting share numbers and prices[55] Internal Controls and Compliance - The Company is implementing plans to improve internal controls over financial reporting due to identified deficiencies[56] - Dues and subscriptions increased from $118,568 during the six months ended February 28, 2023, to $152,441 for the six months ended February 29, 2024, representing a 28.57% increase[25]

Financial Performance - The company generated $381.987 million in residential mortgage loans for the three months ended November 30, 2023, a decrease of $4.791 million or 1.24% compared to $386.778 million in the same period in 2022 [77]. - The net loss for the period was $897,757, compared to a net loss of $762,073 in the same period in 2022, representing an increase in loss of 17.80% [99]. - Adjusted EBITDA for the three months ended November 30, 2023, was a loss of $608,575, a decrease of $91,642 or 16.55% compared to a loss of $516,933 in the same period in 2022 [77]. - Total revenue, net for the three months ended November 30, 2023, was $569,355, a decrease of $322,669 or 36.17% from $892,024 in the same period in 2022 [99]. - Sales revenue decreased by $376,880 or 8.29% to $4,169,428 for the three months ended November 30, 2023, compared to $4,546,308 in the same period in 2022 [99]. - The company’s subscription revenue for the three months ended November 30, 2023, was $183,245, a slight decrease from $187,886 in the same period in 2022 [89]. - Sales revenue decreased from $4,546 million in Q3 2022 to $4,169 million in Q3 2023, representing an 8.29% decrease [100]. - Gross margin decreased to 36.17% in Q3 2023 compared to the same period in 2022, attributed to higher volume by low-margin agents [101]. Expenses - The company reported a commission expense of $3,600,073 for the three months ended November 30, 2023, down from $3,654,284 in the same period in 2022, a decrease of 1.48% [99]. - The company experienced a significant increase in depreciation expenses, which rose by 55.52% to $137,427 for the three months ended November 30, 2023, compared to $88,368 in the same period in 2022 [99]. - Cost of revenue decreased to $3,600 million in Q3 2023 from $3,654 million in Q3 2022, reflecting the decline in revenue [102]. - Selling, general and administrative expenses decreased by $139,574 from $699,724 in Q3 2022 to $560,150 in Q3 2023, a 19.95% decrease [104]. - Advertising and marketing expenses increased to $133,470 in Q3 2023 from $121,567 in Q3 2022, a 9.79% increase due to continued investment [108]. Cash Flow and Investments - Net cash used in operating activities decreased to $1,022,782 in Q3 2023 from $1,159,829 in Q3 2022, a decrease of $137,047 [117]. - As of November 30, 2023, the company's cash balance was $2,341,537, down from $2,381,866 a year earlier [119]. - The company invested $0.267 million in software development for mortgage applications in Q3 2023 [119]. - The company invested in a commercial mortgage firm, MCommercial, representing 5% of the total issued and outstanding shares, enhancing product offerings and service levels [134]. - The company acquired 5% of the total issued and outstanding shares of Mortgage Alliance Corporation, a mortgage brokerage firm, through a share purchase agreement [135]. - The total amount of both investments was recorded at fair value, with any impairment loss recognized in the profit and loss account [136]. Stock and Financial Instruments - The company issued 875,000 shares at $4.00 per share during the IPO, raising $2.732 million after expenses [118]. - Stock-based compensation expense recognized for the three months ended November 30, 2023, was $Nil, compared to $52,904 for the same period in 2022 [141]. - The Chief Financial Officer's stock options, with a fair value of $141,885, were forfeited during the year ended August 31, 2023 [142]. - As of November 30, 2023, the company's financial instruments included cash of $2,341,537 and investments valued at $9,976 [149]. - The company issued 26,250 warrants to underwriters of its initial public offering, with a strike price of $4.00 per warrant [143]. - The company completed a 1-for-3.9 reverse stock split, retroactively adjusting all share numbers and prices in the financial statements [143]. Internal Controls and Compliance - The company is implementing plans to improve internal controls over financial reporting, which currently lack adequate segregation of duties and documentation [144]. - The company conducted an evaluation of its internal control effectiveness, concluding deficiencies in accounting and financial reporting processes [144]. Market Conditions - The company has noted that the mortgage origination market has shrunk significantly due to rising mortgage interest rates and economic uncertainty, impacting demand for mortgage originations [74].

Financial Performance - The company generated $1.399 billion in residential mortgage loans for the year ended August 31, 2023, a decrease of $386 million or 21.63% compared to $1.790 billion in the previous year[144]. - The net loss for the year was $2.874 million, an improvement from the net loss of $3.015 million recorded in the previous year[144]. - Adjusted EBITDA for the year was a loss of $1.239 million, representing a decrease of $0.376 million or 23.26% compared to the previous year's loss of $1.615 million[144]. - Total revenue for the year ended August 31, 2023, was $2.502 million, down from $3.600 million in the previous year, indicating a decline of approximately 30.61%[151]. - Net revenue decreased by 30.51% from $3,600,851 in 2022 to $2,502,264 in 2023[165]. - Gross revenue fell by 19.37% from $20.381 million in 2022 to $16.434 million in 2023, attributed to a decline in real estate transactions[166]. - Gross profit margin decreased from 17.67% in 2022 to 15.23% in 2023 due to increased volume by low-margin agents[167]. - Total expenses decreased by 17.58% from $6,410,911 in 2022 to $5,284,158 in 2023[165]. Mortgage and Real Estate Market - The company's mortgage volume decreased to $1.398 billion in 2023 from $1.785 billion in 2022, reflecting a decline of 21.63%[155]. - The Bank of Canada's prime rate increases have led to a significant shrinkage in the mortgage origination market, impacting demand for mortgage originations[143]. - The number of real estate transactions in Canada decreased by 21.02%, from 558,591 in 2022 to 441,536 in 2023[166]. Revenue Streams - Subscription revenue increased to $736,708 in 2023 from $616,734 in 2022, showing a growth of 19.43%[155]. - The company reported a commission expense of $13.932 million in 2023, down from $16.780 million in 2022, a decrease of 16.96%[155]. - Approximately 40% of deals originated by users utilized the pre-assessment underwriting service, indicating a significant uptake of this offering[159]. Investments and Development - The company invested $1,300,225 in software development for mortgage applications during the year[183]. - Depreciation increased by 72.41% from $255,871 in 2022 to $441,159 in 2023, driven by investments in software development[174]. - The Company invested $36,830 in two mortgage-related firms, representing 5% of the total issued shares of each firm, enhancing its service offerings and revenue potential[199]. Cash Flow and Liquidity - Cash used in operating activities increased to $2,116,105 in 2023 from $1,834,909 in 2022, primarily due to a net loss of $2,809,036[181]. - Cash and cash equivalents decreased from $3,896,839 in 2022 to $720,365 in 2023, a decline of $3,176,474[186]. - The Company reported cash and cash equivalents of $720,365 as of August 31, 2023, a significant decrease from $3,896,839 in the previous year[221]. - The Company has a liquidity risk management strategy to ensure sufficient liquidity to meet obligations, with accounts payable and accrued liabilities totaling $605,318 due within one year[222]. Internal Controls and Compliance - The Company’s internal controls over financial reporting were assessed as lacking adequate segregation of duties and documentation as of August 31, 2023[209]. - The Company has adopted ASC 606 for revenue recognition, ensuring revenue reflects the consideration expected from customers[189]. Other Financial Metrics - Share-based compensation dropped by 95.42% from $723,217 in 2022 to $33,091 in 2023, with no options granted during the year[175]. - The total stock-based compensation expense recognized for vested options was $57,340 for the year ended August 31, 2023[206]. - The Company’s lease obligations total $1,107,961, with $138,372 due within one year[222]. - As of August 31, 2023, the Company’s total assets included cash of $720,365 and investments valued at $10,013[213]. - The Company operates an online platform powered by Salesforce, facilitating efficient deal closures for brokers and agents[191].