TORONTO, April 15,
2024 /PRNewswire/ - Pineapple Financial Inc.
(NYSE American: PAPL), a leading tech-focused mortgage
firm with an integrated network of partner brokerages and agents
across Canada, today announced that, for its second 2024
fiscal quarter ended February 29,
2024, the company achieved revenue of $784,869, a 59.04 percent increase as compared to
revenue of $493,491 for its fiscal
2023 second quarter ended February 28, 2023.
Pineapple generated $314.963
million in residential mortgage loans in Q2 fiscal 2024,
compared to $267.901 million in Q2
fiscal 2023, representing an increase of $47.062 million, or 17.6 percent.
Selling, general and administrative expenses during the three
months ended February 29, 2024, were
$592,202, a 33.3 percent increase
compared to SG&A expenses of $444,226 during the corresponding period in 2023.
This increase was due primarily to added expansion and traveling
costs. The company had a net loss of $657,456, or $(.10)
per share, in fiscal Q2 2024, a 4 percent decrease on the net loss
of $685,093, or $(.10) per share, in the corresponding quarter in
fiscal 2023.
For the first six months of fiscal 2024, which ended
February 29, 2024, the company had
revenue of $1,352,858, a 1 percent
improvement on revenue of $1,334,692
achieved in the first six months of fiscal 2023.
The company generated $697.411
million in residential mortgage loans in the first half of
fiscal 2024 compared to $650.664
million in the corresponding period of fiscal 2023,
representing an increase of $46.747
million, or 7.2 percent.
SG&A expenses in the first half of fiscal 2024 were
$1,104,082, a 6.5 decrease compared
to SG&A expenses of $1,031,947
during the first six months of fiscal 2023. Pineapple had a net
loss of $1,530,696, or $(.24) per share, in the first half of FY 2024,
compared to a net loss of $1,403,748,
or $(.24) per share, during the same
period in FY2023.
The company's cash position on February
29, 2024, was $1,339,618, an
increase of $159,642 compared to a
cash position on February 28, 2023,
of $1,179,976. Including its trade
and other receivables and prepaid expenses and deposits, the
company had total liquidity on February 29,
2024, of $2,417,239.
Weighted average common shares outstanding were 6,475,300 on
February 29, 2024, and 6,306,979 on
February 28, 2023.
"We are very gratified by our 2024 second fiscal results," said
co-founder and chief executive officer Shubha Dasgupta. "Though the Canadian mortgage
industry faced challenging conditions during this period, Pineapple
achieved major improvements in both its loan generation volume and
total revenue."
During the quarter, the company added the CEO, opened offices in
metro Vancouver, Ottawa, Winnipeg, and Alberta, deployed an improved online mortgage
application for brokers, launched custom advertising banner
management software designed to enhance lead conversion, and
presented at several leading Small-cap conferences.
"We're seeing terrific results from our internal tech
improvements and marketing and expansion activities initiated
during fiscal Q2. I believe that, as our industry outlook continues
to improve, Pineapple will continue to demonstrate improved top and
bottom line performance for the remainder of the fiscal year and
beyond."
Pineapple Financial Inc.
Condensed Interim
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
For the three months and six months ended
February 29,
2024
(Expressed in US Dollars)
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Three months
ended
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Six months
ended
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February 29, 2024
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February 28, 2023
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February 29, 2024
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February 28, 2023
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For the period
ended
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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Revenue
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$
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784,869
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493,491
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$
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1,352,858
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1,334,692
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Expenses
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Selling, general and
administrative
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592,202
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444,226
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1,031,947
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1,104,082
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Advertising and
Marketing
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150,597
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354,680
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404,017
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469,321
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Salaries, wages and
benefits
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541,062
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654,683
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1,186,316
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1,274,549
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Interest expense and
bank charges
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28,450
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19,164
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49,881
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39,391
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Depreciation
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160,999
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127,642
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315,184
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210,975
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Share-based
compensation
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-
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(28,892)
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-
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33,041
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Government
Incentive
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(29,109)
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(392,919)
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(80,334)
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(392,919)
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Total
expenses
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$
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1,444,201
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1,178,584
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$
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2,907,011
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2,738,440
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Loss from
operations
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(659,332)
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(685,093)
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(1,554,153)
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(1,403,748)
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Foreign exchange gain
(loss)
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-
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10,772
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-
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Gain (loss) on change
in fair value of warrant liability
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1,876
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-
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12,685
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-
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Loss before income
taxes
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$
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(657,456)
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(685,093)
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$
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(1,530,696)
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(1,403,748)
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Income taxes (recovery)
expense
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-
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Net
loss
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$
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(657,456)
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(685,093)
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$
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(1,530,696)
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(1,403,748)
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Foreign currency
translation adjustment
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1,727
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61,846
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(10,451)
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(135,078)
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Net loss and
comprehensive loss
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$
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(655,729)
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(623,247)
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$
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(1,541,147)
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(1,538,826)
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Loss per share -
basic and diluted ($)
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(0.10)
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(0.10)
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(0.24)
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(0.24)
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Weighted average
number of common shares outstanding - basic and
diluted
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6,475,300
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6,306,979
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6,475,300
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6,306,979
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The
accompanying notes are an integral part of these condensed interim
consolidated financial statements
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About Pineapple Financial
Inc.
Pineapple Financial Inc. is an award-winning fintech and leading
Canadian mortgage brokerage network, focusing on both the
long-term success of agents and brokerages, as well as the overall
experience of homeowners. With approximately 700 brokers within the
network, Pineapple creates cutting-edge cloud-based tools and
AI-driven systems to enable its brokers to help Canadians realize
their dream of owning a home. Pineapple is active within the
community and is proud to sponsor charities
across Canada to improve the lives of fellow
Canadians.
Forward-Looking
Statements
Certain statements in this announcement are forward-looking
statements, including, but not limited to, the Company's proposed
Offering. These forward-looking statements involve known and
unknown risks and uncertainties and are based on the Company's
current expectations and projections about future events that the
Company believes may affect its financial condition, results of
operations, business strategy and financial needs, including the
expectation that the Offering will be successfully completed.
Investors can identify these forward-looking statements by words or
phrases such as "may," "will," "expect," "anticipate," "aim,"
"estimate," "intend," "plan," "believe," "is/are likely to,"
"potential," "continue" or other similar expressions. The Company
undertakes no obligation to update or revise publicly any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations that arise after
the date hereof, except as may be required by law. These statements
are subject to uncertainties and risks including, but not limited
to, the uncertainties related to market conditions and the
completion of the initial public offering on the anticipated terms
or at all, and other factors discussed in the "Risk Factors"
section of the registration statement filed with the SEC. Although
the Company believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that such expectations will turn out to be correct, and the Company
cautions investors that actual results may differ materially from
the anticipated results and encourages investors to review other
factors that may affect its future results in the Company's
registration statement and other filings with the SEC. Additional
factors are discussed in the Company's filings with the SEC, which
are available for review at www.sec.gov.
Follow us on social media:
Instagram: @pineapplemortgage @empoweredbypineapple
Facebook: Pineapple Mortgage
LinkedIn: Pineapple Mortgage
Related Links:
https://gopineapple.com
http://empoweredbypineapple.com
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SOURCE Pineapple Financial Inc.