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].
Pineapple(PAPL) - 2025 Q2 - Quarterly Report