Pineapple(US:PAPL)2026-01-20 23:43Financial Performance - For the three months ended November 30, 2025, the company reported a net loss of approximately $6.4 million, compared to a net loss of approximately $0.7 million for the same period in the prior year, reflecting an increase in net loss driven by a non-cash loss related to digital asset holdings [160]. - Revenue for the three months ended November 30, 2025, was approximately $0.7 million, a decrease of approximately $44 thousand, or 5.8%, compared to $0.8 million in the prior-year period, attributed to continued softness in mortgage origination activity [161]. - The company recorded a net loss of $6.4 million for the three months ended November 30, 2025, with negative operating cash flows of $498,367 [208]. Operating Expenses - Total operating expenses increased to approximately $7.3 million for the three months ended November 30, 2025, compared to approximately $1.5 million in the same period of the prior year, primarily due to a $6.1 million non-cash loss from digital asset fair value changes [162]. - Selling, general and administrative expenses decreased by approximately 5.4%, while advertising and marketing expenses declined by approximately 54% due to reduced discretionary spending [163]. - SG&A expenses decreased to $394,851 for the three months ended November 30, 2025, from $417,406 in the prior-year period, representing a decrease of approximately 5.4% [191]. - Advertising and marketing expenses decreased by approximately 54.4% to $124,398 for the three months ended November 30, 2025, compared to $273,009 in the same period last year [202]. Mortgage Activity - Mortgage origination volume increased to approximately $457.1 million for the three months ended November 30, 2025, compared to $424.1 million in the prior-year period, representing an increase of approximately 7.8% driven by higher renewal and refinance activity [184]. - Early indicators in the fourth quarter reflected increased mortgage application volumes and lead-generation activity, primarily driven by renewal and refinance demand, positioning the company for a gradual recovery in mortgage activity [159]. Digital Assets - The company invested approximately $11.8 million in Injective digital assets during the quarter, with plans to pursue up to $100 million in aggregate investment, subject to market conditions [158]. - The company recognized a fair value loss of $6.1 million on digital assets during the quarter, which is presented within operating expenses [165]. Cash Flow and Liquidity - Net cash used in operating activities improved to $489,745 for the three months ended November 30, 2025, compared to $663,597 in the prior-year period, representing a reduction of $173,852 [215]. - Net cash provided by financing activities totaled $11.95 million for the three months ended November 30, 2025, compared to $1.19 million in the prior-year period, primarily due to additional borrowings [217]. - Net cash used in investing activities was $12.11 million for the three months ended November 30, 2025, compared to $0.28 million in the prior-year period, driven by purchases of Injective digital assets [218]. - As of November 30, 2025, the Company had cash and cash equivalents of $1.48 million, down from $2.34 million at the same time last year, reflecting significant investing outflows [219]. Assets and Liabilities - As of November 30, 2025, the Company's total current assets decreased to $1,789,874 from $2,319,595 as of August 31, 2025, representing a decrease of approximately $529,721 [221]. - Total current liabilities increased significantly to $14,793,034 as of November 30, 2025, from $3,001,691 as of August 31, 2025, driven by the recognition of a loan payable of $11,983,087 [224]. - Trade and other receivables increased to $143,732 as of November 30, 2025, compared to $92,223 at August 31, 2025, reflecting the timing of billings and collections [223]. - Prepaid expenses and deposits increased to $166,975 as of November 30, 2025, from $110,001 as of August 31, 2025, due to advance payments for various services [223]. - Accounts payable and accrued liabilities decreased modestly to $2,001,934 from $2,125,160, reflecting the timing of vendor payments [224]. Strategic Investments - The Company invested in a commercial mortgage firm, MCommercial, representing 5% of the total issued shares, enhancing product offerings and service levels [239]. - The Company acquired 5% of the total issued shares of Mortgage Alliance Corporation, expanding its presence in the mortgage brokerage sector [240]. Management Outlook - Management believes existing cash resources and expected operating cash flows are sufficient to meet short-term obligations [225]. - The Company operates under U.S. GAAP, requiring estimates and assumptions that may differ from actual results [226].