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].
Pineapple(PAPL) - 2025 Q1 - Quarterly Report