Pineapple(PAPL) - 2025 Q4 - Annual Report

Financial Performance - For the fiscal year ended August 31, 2025, the company generated approximately $1.599 billion in residential mortgage loan originations, an increase of $70 million, or approximately 4.6% year-over-year[294]. - The company's net loss for the year was approximately $3.538 million, an improvement from a net loss of $4.093 million in the prior fiscal year, primarily due to higher funded mortgage volumes and efficiency gains from technology investments[295]. - Gross billings increased from $16.264 million for the fiscal year ended August 31, 2024, to $17.431 million for the fiscal year ended August 31, 2025, representing a year-over-year increase of approximately 7.18%[312]. - Revenue for the year ended August 31, 2025, was $2.987 million, compared to $2.689 million for the year ended August 31, 2024, representing an increase of $297,836, or 11.08% year-over-year[313]. - The Company recorded a loss from operations of $2.948 million for the fiscal year ended August 31, 2025, an improvement of approximately $0.877 million or 22.93% year-over-year[336]. - The net loss for the fiscal year ended August 31, 2025, was $3.638 million, compared to a net loss of $4.103 million for the fiscal year ended August 31, 2024, representing an improvement of $464,194, or 11.31%[340]. Cost Management - The cost of gross billing, primarily commission expense, increased from $14.896 million in fiscal 2024 to $15.827 million in fiscal 2025, reflecting a 6.25% increase year-over-year[315]. - Selling, general, and administrative (SG&A) expenses decreased by $128,281, or 5.38%, from $2,382,225 in fiscal 2024 to $2,253,944 in fiscal 2025, reflecting a focus on cost management and operational efficiency[318]. - Software subscription expenses decreased by $151,636, or 16.87%, to $747,234 in fiscal 2025, due to optimization of technology infrastructure and consolidation of third-party software tools[319]. - Salaries, wages, and benefits decreased by $791,759, or 32.49%, from $2,436,783 in fiscal 2024 to $1,645,024 in fiscal 2025, driven by organizational streamlining efforts[331]. - The company continues to balance growth in gross billings with disciplined cost management through enhanced automation and agent-performance analytics[316]. Cash Flow and Liquidity - Net cash used in operating activities was $946,820 for the fiscal year ended August 31, 2025, compared to $1,708,261 for the fiscal year ended August 31, 2024, an improvement of $761,441[356]. - Cash at the end of the period increased to $2,117,371 from $580,356, reflecting improved liquidity[352]. - The Company has incurred recurring operating losses and continues to experience negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern[354]. - Net cash provided by financing activities increased to $3,458,306 in fiscal 2025 from $2,912,627 in fiscal 2024, primarily due to additional borrowings to fund working capital and technology investments[357]. - Net cash used in investing activities decreased to $944,187 in fiscal 2025 from $1,117,390 in the prior year, mainly for the capitalization of internally developed software and enhancements to the Pineapple Plus platform[358]. - The company's cash balance improved to $2,117,371 as of August 31, 2025, compared to $580,356 in the prior year, reflecting a year-over-year increase of approximately $1.54 million[359]. - Total current assets rose to $2,319,595 as of August 31, 2025, up from $893,490 in the previous year, indicating a year-over-year improvement of approximately $1.43 million[363]. Technology and Innovation - The company advanced its technology capabilities through the continued development of its proprietary Pineapple Plus platform, contributing to higher productivity per agent and stronger client engagement[292]. - Subscription revenue remained stable, reflecting continued adoption and usage of the company's Pineapple Plus platform[313]. - The company invested approximately $11.4 million in Injective digital assets, which management believes may generate future economic benefits depending on market performance[362]. Market Conditions - Early fourth-quarter indicators reflected increased application activity and lead generation, positioning the company to benefit from a gradual recovery in mortgage activity heading into fiscal 2026[293]. - The Bank of Canada's monetary policy easing, reducing the policy rate from 5.00% in mid-2024 to 3.25% by August 31, 2025, contributed to improved affordability and renewed consumer confidence[312]. Future Outlook - The company expects existing cash resources to be sufficient to meet operating needs for at least the next 12 months and support strategic growth initiatives[361]. - The company plans to access additional capital through the Injective Digital Asset Treasury Initiative, expecting to realize $2.1 million held in escrow upon the filing of the Company's Form S-1[362]. - The company's liquidity position is supported by disciplined spending and operational efficiencies, ensuring sufficient resources to meet short-term obligations and support near-term growth initiatives[366].