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].