UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~November~~February 3028, ~~2025~~2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-41738

PINEAPPLE FINANCIAL INC.

(Exact name of registrant as specified in its charter)

Canada

Not applicable00-0000000

(State or other jurisdiction

of incorporation or organization)

(I.R.S. Employer

Identification No.)

Unit 200, 111 Gordon Baker Road

North York, Ontario M2H 3R1

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (416) 669-2046

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated Filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging Growth Company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol		Name of each exchange on which registered
Common Shares, no par value		PAPL		NYSE American

The number of shares of the registrant’s common stock issued and outstanding, as of ~~January~~April 2010, 2026 was 2526,~~988~~088,651.

PINEAPPLE FINANCIAL INC.

TABLE OF CONTENTS FOR FORM 10-Q

PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Interim Consolidated Balance Sheets - Unaudited	1
	Condensed Interim Consolidated Statements of Operations and Comprehensive Loss - Unaudited	2
	Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity - Unaudited	3
	Condensed Interim Consolidated Statements of Cash Flow – Unaudited	4
	Notes to the Condensed Interim Consolidated Financial Statements - Unaudited	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1926
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3148
Item 4.	Controls and Procedures	3148
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	3148
Item 1A.	Risk Factors	3148
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3148
Item 3.	Defaults Upon Senior Securities	3249
Item 4.	Mine Safety Disclosures	3249
Item 5.	Other Information	3249
Item 6.	Exhibits	3249
	SIGNATURES	3350

Pineapple Financial Inc.

Condensed Interim Consolidated Balance Sheets - Unaudited

For the ~~three~~six month period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

As at:		~~November~~February 3028, ~~2025~~2026			August 31, 2025
		$			$
Assets
Current assets
Cash			117,~~479~~736,~~167~~423			2,117,371
Trade and other receivables			143,732			92,223
Restricted cash			158,659			-
Prepaid expenses and deposits			166,975			110,001
Trade and other receivables			213,560			92,223
Total current assets			1,789,874			2,319,595
Loans receivable	Note 12		5,000,000			-
Investment	Note 4		9,692			9,733
Prepaid expenses and deposits			246,820			110,001
Crypto assets	Note 10		5,764,245			-
Total current assets			23,355,462			2,319,595
Right-of-use asset - net	Note 9		498,309			530,163
Investment	Note 4		9,931			9,733
Property and equipment - net			53,024			61,957
Crypto assets	Note 6		22,427,134			-
Intangible assets - net	Note 5		2,511,792			2,495,773
Right-of-use asset - net	Note 10		480,211			530,163
Total Assets			10,626,936			5,417,221
Property and equipment - net			43,475			61,957
Intangible assets - net	Note 5		2,556,388			2,495,773
Total Assets			48,872,601			5,417,221
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable and accrued liabilities			21,~~001~~030,~~934~~117			2,125,160
Loan payable	Note 12		11,983,087			-
Loans payable	Note 12		18,972,000			-
Deferred revenue			3798,~~997~~992			108,552
Loan from directors			629,728			629,120
Derivative liability	Note 18		18,730			-
Current portion of lease liability	Note 9		140,288			138,859
Loans from directors			-			629,120
Total current liabilities			14,793,034			3,001,691
Current portion of lease liability	Note 10		146,296			138,859
Deferred government incentive	Note 13		286,757			314,998
Total current liabilities			20,266,135			3,001,691
Lease liability	Note 9		522,931			561,100
Deferred government incentive	Note 13		266,229			314,998
Warrant liability	Note 7		512,725			632,753
Lease liability	Note10		498,109			561,100
Total liabilities			16,115,447			4,510,542
Warrant liability	Note 7		743,188			632,753
Total liabilities			21,773,661			4,510,542
Shareholders’ Equity
Common shares (*), no par value; unlimited authorized; 1,345,941 issued and outstanding shares as of November 30, 2025 and 1,340,941 as at August 31, 2025.	Note 6		11,656,838			11,621,468
Common shares (*), no par value; unlimited authorized; 26,088,651 issued and outstanding shares as of February 28, 2026 and 1,340,941 as at August 31, 2025.	Note 6		63,038,590			11,621,468
Common shares to be issued			88,136			88,136
Additional paid-in capital	Note 6,7		3,102,814			3,102,814
Accumulated other comprehensive loss			~~(504~~196,~~775~~778	)		(509,300	)
Accumulated deficit			(1939,~~831~~327,~~524~~378	)		(13,396,439	)
Total stockholders’ equity			(527,~~488~~098,~~511~~940	)		906,679
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			1048,~~626~~872,~~936~~601			5,417,221

Description of business (note 1)

Going concern (note 1)

Contingencies and commitments (note 14)

Subsequent events (note 18)

Approved on behalf of Board of Directors

“Shuba Dasgupta”

“Drew Green”

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

Pineapple Financial Inc.

Condensed Interim Consolidated Statements of Operations and Comprehensive Loss - (Unaudited )

For the three month and six month ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

For the three months ended		November 30, 2025			November 30, 2024
		February 28, 2026			February 28, 2025			February 28, 2026			February 28, 2025
		$			$
		Three months ended						Six months ended
Revenue	Note 15		721,727			766,074
		February 28, 2026			February 28, 2025			February 28, 2026			February 28, 2025
Expenses
For the period ended		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Selling, general and administrative			394,850			417,406
		$			$			$			$
Advertising and marketing			124,398			273,009
Revenue	Note 15		707,342			743,309			1,429,267			1,512,236
Salaries, wages and benefits			162,383			436,365
Expenses and other income
Interest expense and bank charges			265,236			174,505
Selling, general and administrative			659,855			572,853			1,052,703			995,190
Depreciation and amortization	Note 5,9		222,800			185,523
Advertising and Marketing			293,749			57,101			416,852			326,945
Fair value loss on crypto assets	Note 10		6,140,379			-
Salaries, wages and benefits			188,529			391,418			350,730			828,764
Government incentive	Note 13		(26,973	)		(27,219	)
Interest expense and bank charges			364,782			100,005			629,280			273,812
Total expenses			7,283,073			1,459,589
Depreciation and amortization	Note 5		241,589			242,181			464,271			429,645
Loss from operations			(6,561,346	)		(693,515	)
Fair value loss on crypto assets			16,882,557			-			23,026,713			-
Foreign exchange gain			28,831			5,089
Staking income			(221,718	)		-			(221,718	)		-
Gain on change in fair value of warrant liability	Note 7		97,430			31,532
Share-based compensation			142,000			-			142,000			-
Net loss			(6,435,085	)		(656,894	)
Government Incentive	Note 13		(27,397	)		(21,301	)		(54,369	)		(48,518	)
Foreign currency translation adjustment			(4,525	)		(272,351	)
Total expenses			18,523,946			1,342,257			25,806,462			2,805,838
Net loss and comprehensive loss			(6,439,610	)		(929,245	)
Loss from operations			(17,816,604	)		(598,948	)		(24,377,195	)		(1,293,602	)
Net loss per share - basic and diluted			(4.79	)		(2.60	)
Foreign exchange (loss) gain			(188,189	)		(969	)		(157,675	)		4,021
Weighted average number of common shares (*) outstanding - basic and diluted (numbers)			1,344,391			357,297
Interest income			214,334			-			214,334			-
Financing cost - warrants			(1,325,558	)		-			(1,325,558	)		-
Financing cost -Equity line of credit	Note 19		(1,500,000	)		-			(1,500,000	)		-
Gain (loss) on change in fair value of derivative liability	Note 18		15,653			-			15,653			-
Gain (loss) on change in fair value of warrant liability	Note 8		1,104,576			4,468			1,199,502			35,591
Loss before income taxes			(19,495,788	)		(595,449	)		(25,930,939	)		(1,253,990	)
Income taxes (recovery) expense			-			-			-			-
Net loss			(19,495,788	)		(595,449	)		(25,930,939	)		(1,253,990	)
Foreign currency translation adjustment			(76,597	)		(184,795	)		(706,078	)		87,556
Net loss and comprehensive loss			(19,572,385	)		(780,244	)		(26,637,017	)		(1,166,434	)
Loss per share - basic and diluted			(1.21	)		(1.73	)		(3.05	)		(2.66	)
Weighted average number of common shares outstanding - basic and diluted			16,174,900			451,300			8,719,236			438,025

~~(*)~~ On July 16, 2025, the Company effected a 20-for-1 reverse stock split of its issued and outstanding common shares. All share and per-share information presented in the consolidated financial statements, including weighted-average shares outstanding, EPS, and disclosures related to stock options, RSUs, and warrants, have been retroactively adjusted to reflect the reverse stock split for all periods presented.

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

Pineapple Financial Inc.

Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity - Unaudited

(Expressed in US Dollars)

						Additional		Accumulated
						Additional Paid in		Accumulated
	Common			Common		~~Paid in~~Capital		other			Accumulated			Total
	Shares			shares to		~~Capital~~(Note 7		comprehensive			(deficit)			shareholders’
	(note 6)			be issued		(note 6 and 7)		loss			earnings			equity
	(Note 7)			be issued		and 8)		loss			earnings			equity
	$			$		$		$			$			$
Balance, August 31, 2024		8,559,856			-		2,955,944		(408,510	)		(9,757,974	)		1,349,316
Shares issued against S3		~~168~~549,~~050~~059			-		-		-			-			~~168~~549,~~050~~059
Shares against pre-funded warrants		-			-		~~563~~182,~~781~~828		-			-			~~563~~182,~~781~~828
Foreign exchange translation		-			-		-		(~~272~~87,~~351~~556	)		-			(~~272~~87,~~351~~556	)
Net loss		-			-		-		-			(~~656~~1,~~894~~253,990	)		(~~656~~1,~~894~~253,990	)
Balance, November 30, 2024		8,727,906			-		3,519,725		(680,861	)		(10,414,868	)		1,349,316
Balance, February 28, 2025		9,108,915			-		3,138,772		(496,066	)		(11,011,964	)		739,657
Balance, August 31, 2025		11,621,468			88,136		3,102,814		(509,300	)		(13,396,439	)		906,679
Balance		11,621,468			88,136		3,102,814		(509,300	)		(13,396,439	)		906,679
Shares issued against warrants exercise		35,370			-		-		-			-			35,370
Shares issued through PIPE - cash		21,949,955			-		-		-			-			21,949,955
Foreign exchange translation		-					-		4,525			-			4,525
Shares issued through PIPE in-kind		31,323,740			-		-		-			-			31,323,740
Net loss		-					-		-			(6,435,085	)		(6,435,085	)
Shares issued against compensation		142,000			-		-		-			-			142,000
Balance, November 30, 2025		11,656,838			88,136		3,102,814		(504,775	)		(19,831,524	)		(5,488,511	)
Share issue cost		(2,033,995	)		-		-		-			-			(2,033,995	)
Balance		11,656,838			88,136		3,102,814		(504,775	)		(19,831,524	)		(5,488,511	)
Shares issued against warrants exercise		35,422			-		-		-			-			35,422
Foreign exchange translation		-			-		-		706,078			-			706,078
Net loss		-			-		-		-			(25,930,939	)		(25,930,939	)
Balance, February 28, 2026		63,038,590			88,136		3,102,814		196,778			(39,327,378	)		27,098,940
Balance		63,038,590			88,136		3,102,814		196,778			(39,327,378	)		27,098,940

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

Pineapple Financial Inc.

Condensed Interim Consolidated Statements of Cash Flow – Unaudited

For the ~~three~~six month ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

For the year ended:		November 30, 2025			November 30, 2024
For the six months ended:		February 28, 2026			February 28, 2025
For the three months ended:		November 30, 2025			November 30, 2024
		$			$
Cash provided by (used for) the following activities
Operating activities
Net loss for the year			(625,~~435~~930,~~085~~939	)		(~~656~~1,~~894~~253,990	)
Adjustments for the following non-cash items:
Depreciation of property and equipment			1021,~~611~~555			2142,~~618~~553
Bad debt written off			718,~~154~~050			-
Amortization of intangible assets	Note 5		182,493			131,030
Staking income			(221,718	)		-
Depreciation on right of use asset	Note 9		29,696			32,874
Amortization of intangible assets	Note 5		386,009			270,073
Interest expense on lease liability	Note 9		10,096			13,921
Depreciation on right of use asset	Note 10		60,326			117,019
Change in fair value of warrant liability	Note 7		(97,430	)		(31,532	)
Interest expense on lease liability	Note 10		20,000			26,824
Fair value loss on crypto assets	Note 10		6,140,379			-
Derivative liability			18,730			-
Foreign exchange gain (loss)			-			(5,089	)
Warrants expense			1,325,558			-
Share based compensation			142,000			-
Change in fair value of warrant liability	Note 8		(1,199,502	)		(35,591	)
Fair value loss on digital assets	Note 6		23,026,713			-
Foreign exchange gain (loss)			-			4,021
Net changes in non-cash working capital balances:
Trade and other receivables			(58139,~~663~~387	)		(2722,~~302~~557	)
Prepaid expenses and deposits			(56136,~~974~~819	)		2(41,~~928~~552	)
Accounts payable and accrued liabilities			(~~123~~1,~~226~~095,043	)		~~(33~~103,~~677~~551	)
Deferred government incentive			(2848,~~241~~769	)		~~(45~~33,~~236~~603	)
Deferred revenue			(709,~~555~~560	)		(6680,~~238~~182	)
Net cash used in operating activities			(~~489~~3,~~745~~762,796	)		(~~663~~836,~~597~~228	)
Financing activities
Share capital issuance	Note 67		1519,~~000~~915,960			~~168~~549,~~050~~059
Additional share capital issued			-			~~563~~182,~~781~~828
Proceed from director’s loan			-			~~525~~599,~~000~~130
Proceed from warrant exercise			(315,034	)		-
Repayment of loan			-(613,700	)		~~(15,196~~-	)
Proceed from loan payable	Note 1112		1118,~~983~~972,~~087~~000			-
Repayment of lease obligations	Note 910		(4389,~~979~~328	)		(53104,~~599~~696	)
Net cash provided by financing activity			1138,~~954~~199,~~105~~966			1,~~188~~226,~~036~~321
Investing activities
Additions to intangible assets	Note 5		(~~208~~395,~~905~~617	)		(~~282~~539,~~298~~410	)
Additions to property and equipment			(1,923	)		-
Loan receivable	Note 12		(5,000,000	)		-
Purchase of crypto assets	Note 11		(11,896,002	)		-
Additions to property and equipment			(1,938	)		-
Net cash used in investing activity			(12,106,830	)		(282,298	)
Purchase of crypto assets	Note 6		(13,895,990	)		-
Net change in cash			(642,470	)		242,141
Net cash used in investing activity			(19,293,545	)		(539,410	)
Effect of changes in foreign exchange rates			4,266			(202,916	)
Net change in cash			15,143,625			(149,317	)
Effect of changes in foreign exchange rates			634,086			62,568
Cash, beginning of year			2,117,371			580,356
Cash, end of year			1,479,167			619,581
Cash, end of period			17,895,082			493,607

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

1. Description of business

Pineapple Financial Incorporation, (“the Company”) was incorporated in 2006, under the Ontario Business Corporations Act. Later the company was registered under Canadian Business Corp. The Company’s head office is located at 200-111 Gordon Baker Road, Toronto, Ontario, M2H 3R1 Canada and its securities are publicly listed on the New York Stock Exchange American (NYSE American) under ticker “PAPL”.

Going ~~Concern~~concern

The ~~Company~~accompanying ~~continues~~condensed tointerim ~~incur~~consolidated ~~significant~~financial ~~operating~~statements ~~losses~~have ~~and~~been ~~negative~~prepared ~~operating~~on ~~cash flows,~~ a ~~trend~~going ~~expected~~concern tobasis, ~~persist~~which incontemplates the ~~near~~ ~~term.~~realization ~~For the three months period ended November 30, 2025, the Company incurred a net loss~~ of ~~$6,435,085~~assets ~~(November 30, 2024 - $656,894)~~ and ~~reported negative cash flows from operating activities of $498,367 (November 30, 2024 – 663,597). As at November 30, 2025,~~ the ~~Company~~ ~~had~~settlement ~~an accumulated deficit~~ of ~~$19,831,524 (August 30, 2025 – $13,396,439) and a working capital deficit of $13,003,160 (August 31, 2025- $682,096), indicating that current assets are not sufficient to discharge existing~~ liabilities asin ~~they become due. These conditions raise substantial doubt about~~ the ~~Company’s~~normal ~~ability~~course toof ~~continue as a going concern~~business.

~~Management’s~~For ~~ability~~the tosix ~~sustain~~months ~~operations~~ended ~~depends~~February on28, ~~realizing~~2026, ~~assets~~the ~~and~~Company ~~managing~~incurred ~~obligations~~a asnet ~~they~~loss ~~come~~of $25.9 ~~due,~~million as(February ~~well~~28, as2025 ~~securing~~– ~~additional financial resources~~$1.3 million) ~~Subsequent~~and toreported ~~period~~negative ~~end,~~cash ~~the~~flows ~~Company~~from ~~entered~~operating ~~into~~activities ~~the~~of $3.8 ~~Injective~~million ~~Digital~~(February ~~Asset Treasury Initiative~~28, ~~pursuant~~2025 to– ~~which the Company received approximately~~ $190.008 million). As onof ~~January~~February 928, ~~2025. In addition~~2026, the Company ~~completed~~had an ~~investment~~accumulated ofdeficit of $1139.43 million inand positive working capital of ~~Injective~~$3.1 ~~tokens,~~million ~~which~~(current ~~management~~assets ~~anticipates~~of ~~may~~$23.4 ~~generate~~million ~~future~~compared ~~economic~~to ~~benefits~~current ~~through~~liabilities ~~potential~~of ~~fair-value~~$20.3 ~~appreciation~~million).

~~Management~~Of note, the net loss for the period was primarily driven by (i) non-cash fair value losses on digital assets of $23.0 million, reflecting market price volatility, and (ii) one-time, non-recurring financing expenses associated with the Company’s ~~plans~~private toplacement transaction ~~address~~completed on January 6, 2026. Excluding these non-cash and non-recurring items, the Company’s operating cash outflows ~~conditions~~were ~~include:~~significantly lower and continue to be actively managed.

1.These conditions, ~~securing~~including ~~the~~recurring ~~proceeds~~losses ~~expected~~and ~~under~~negative ~~the~~operating ~~Injective~~cash ~~initiative~~flows, 2.raise ~~pursuing~~substantial ~~additional~~doubt ~~capital~~about ~~and~~the ~~financing~~Company’s ~~arrangements,~~ability ~~and~~to continue 3.as ~~implementing~~a ~~further~~going ~~cost-containment~~concern ~~and~~within ~~working~~one ~~capital~~year ~~measures~~after the date that these financial statements are issued.

~~These plans are discussed~~Management ~~further~~has inimplemented ~~Note~~and ~~17,~~continues ~~Subsequent~~to ~~Events.~~pursue ~~There~~the isfollowing ~~no assurance that these~~ initiatives ~~will be achieved as planned. Accordingly, substantial doubt remains regarding the Company’s ability~~ to ~~continue~~improve asliquidity aand ~~going~~support ~~concern.~~ongoing operations:

●

Capital raising activities

During the period, the Company completed a private placement financing and entered into a credit facility, resulting in significant financing inflows that strengthened the Company’s liquidity position.

●

Digital Asset Strategy and Yield Generation

The Company has deployed capital into digital assets, including Injective tokens, and is generating yield through staking activities. During the period, staking income of $221,718 was recognized. Management expects these activities to contribute to ongoing liquidity and capital efficiency over time.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended February 28, 2026

(Expressed in US Dollars)

1. Description of business (continued from previous page)

●

Cost Optimization Measures

The Company has implemented cost reduction initiatives, including reductions in payroll and discretionary expenditures, to better align its cost structure with current operating levels.

●

Working Capital and Liquidity Management

Management continues to actively monitor cash flows, manage working capital, and optimize the deployment of capital, including maintaining appropriate liquidity buffers.

While management believes that the above plans, together with existing cash balances of $17.9 million and access to financing arrangements, will provide sufficient liquidity to fund operations and meet obligations as they become due for at least the next twelve months, there can be no assurance that these plans will be successfully executed. Accordingly, substantial doubt about the Company’s ability to continue as a going concern remains.

Impact from the global inflationary pressures leading to higher interest rates

~~During~~Following ~~fiscal~~a ~~2024,~~period ~~global~~of ~~inflationary~~elevated ~~pressures~~inflation ~~resulted~~ in fiscal 2023 and early 2024, central banks, including the Bank of Canada, ~~increasing~~implemented ~~benchmark~~significant ~~interest rates~~monetary totightening ~~mitigate~~measures, ~~inflation. The~~ resulting in higher ~~borrowing~~benchmark ~~costs~~interest ~~led~~rates toand aincreased ~~slowdown~~borrowing incosts. ~~real-estate~~These ~~activity,~~conditions ~~reduced~~contributed ~~pricing~~to ~~pressures~~reduced housing affordability, ~~and~~ lower transaction volumes, ~~across~~and ~~the~~a ~~housing~~slowdown ~~market~~in real estate activity.

InDuring fiscal 2025, ~~the~~as ~~Bank~~inflationary ofpressures ~~Canada~~moderated ~~began~~toward tothe ~~gradually~~Bank ~~reduce~~of ~~interest~~Canada’s ~~rates~~target asrange ~~inflationary~~of ~~trends~~1% ~~moderated~~to ~~and~~3%, ~~economic~~the ~~conditions~~Bank ~~softened. While~~began ~~these decreases are expected~~ to ~~improve~~gradually reduce ~~housing~~policy ~~affordability~~interest ~~and~~rates ~~support~~from ~~market~~peak ~~recovery~~levels. ~~over~~By ~~time~~late 2025, the ~~full~~benchmark ~~impact~~rate onhad ~~the~~declined ~~real-estate~~to 2.25%, reflecting easing ~~sector~~inflation and ~~related~~softer ~~businesses~~economic ~~remains~~growth ~~uncertain as of November 30, 2025~~conditions.

As of February 28, 2026, the Bank of Canada has maintained its policy rate at 2.25%, ~~Significant~~reflecting ~~accounting~~a ~~policies~~more cautious and data-dependent approach to monetary policy amid ongoing economic uncertainty. Inflation has generally stabilized near the Bank’s 2% target, although risks remain due to global factors such as geopolitical developments and energy price volatility.

While the stabilization of interest rates has provided some support to borrower confidence and housing market activity, overall mortgage origination volumes remain below historical levels, and the timing and pace of a sustained market recovery continue to be uncertain. Management continues to monitor macroeconomic conditions closely, as changes in interest rates and inflation expectations may materially impact the Company’s operating environment and financial performance.

2. Material accounting policies

Statement of compliance

These condensed interim consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”).

The condensed interim consolidated financial statements were authorized for issue by the Board of Directors on ~~January~~April 2010, 2026.

Basis of preparation, functional and presentation currency

The condensed interim consolidated financial statements have been prepared in accordance with GAAP applicable to a going concern, which ~~contemplates~~ contemplates the realization of assets and the satisfaction of liabilities in the normal course of business on the historical cost basis except for certain financial instruments that are measured at fair value. ~~Historical cost is generally based on the fair value of the consideration given in exchange for assets.~~

All financial information is presented in US Dollars (“USD”) as the Company’s presentation currency and functional currency is in Canadian Dollars (“CAD”). The interim financial statements are condensed and should be read in conjunction with the Company’s latest annual year-end consolidated financial statements for the year ended August 31, 2025. It is management’s opinion that all adjustments necessary for a fair statement of the results for the interim period has been made, and all adjustments are of a recurring nature or a description of the nature of and any amount of any adjustments other than normal recurring nature has been stated. Sufficient disclosures have been so as to not make the interim financial information misleading. There are no prior-period adjustments in these condensed interim consolidated financial statements.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

2. Significant accounting policies (continued from previous page)

Operating segments

The Company determines its reporting units in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 280, Segment Reporting. The Company evaluates a reporting unit by first identifying its operating segments under ASC 280. The Company operates as one operating segment which is reported in a manner consistent with the internal reporting provided to the chief operating decision-makers. The chief operating decision-makers are responsible for the allocation of resources and assessing the performance of the operating segment and have been identified as the CEO and CFO of the Company.

Adjustment for reverse stock split

In July 2023, the Board of Directors approved a 1-for-3.9 reverse stock split (the “2023 Reverse Split”), which became effective on July 14, 2023.

On July 16, 2025, the Company effected a 1-for-20 reverse stock split of its issued and outstanding common shares. The reverse split did not affect the total shareholders’ equity of the Company or the par value of the common shares. All share, option, warrant and restricted share unit (“RSU”) amounts, as well as all per-share information presented in these unaudited condensed interim consolidated financial statements, have been retroactively adjusted to reflect the reverse stock split for all periods presented.

Operating segments

The Company determines its operating and reportable segments in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 280, Segment Reporting. Operating segments are identified based on the manner in which financial information is regularly reviewed by the Company’s chief operating decision makers (“CODM”) for the purposes of allocating resources and assessing performance.

During the six months ended February 28, 2026, the Company revised its internal reporting structure to reflect the expansion of its business activities. As a result, the Company now operates through two reportable segments:

	●	Mortgage Operations - includes the Company’s traditional mortgage brokerage, underwriting, and related services, which generate revenue from commissions, fees, and other mortgage-related activities.
	●	Crypto Asset Operations - includes the Company’s digital asset treasury strategy, comprising the acquisition, management, and valuation of digital assets, as well as yield-generating activities such as staking and other blockchain-based initiatives.

The Company’s chief operating decision makers, identified as the Chief Executive Officer and Chief Financial Officer, review financial information for these two segments separately to evaluate performance and make decisions regarding resource allocation.

Segment performance is primarily evaluated based on revenue, operating income (loss), and key underlying drivers specific to each segment, including transaction volumes in the mortgage business and fair value movements and yield generation in the digital asset segment.

Basis of consolidation

The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries, Pineapple Insurance Inc and Pineapple National Inc. All transactions with the subsidiaries and any intercompany balances, gains or losses have been eliminated upon consolidation. The subsidiaries have a USD presentation currency, and the functional currency is in CAD, and accounting policies have been applied consistently to the subsidiaries.

~~New Accounting Policies~~7

~~Crypto~~Pineapple ~~Assets~~Financial Inc.

~~The~~Notes ~~Company~~to ~~holds crypto assets, which meet~~ the ~~definition~~Condensed ofInterim ~~crypto~~Consolidated ~~assets~~Financial ~~under~~Statements ~~ASC 350~~-~~60,~~ ~~Intangibles - Goodwill and Other - Crypto Assets. Crypto assets are fungible digital assets secured by cryptography and recorded on a distributed ledger.~~Unaudited

~~Crypto~~For ~~assets~~period ~~are~~ended ~~recognized~~February ~~when the Company obtains control of the assets~~28, ~~which occurs upon settlement and transfer of the assets to an account or wallet under the Company’s control.~~2026

~~Crypto~~(Expressed ~~assets are measured at fair value at each reporting date~~ in ~~accordance~~US ~~with ASC 350-60, with changes in fair value recognized in earnings in the period in which they occur.~~Dollars)

~~Fair value is determined in accordance with ASC 820, Fair Value Measurement, using quoted closing prices in active markets accessible to the Company at the measurement date~~2. ~~These quoted prices represent Level 1 inputs within the fair value hierarchy because they are unadjusted,~~ ~~observable~~Significant ~~prices~~accounting ~~for~~policies ~~identical~~(continued ~~assets~~from inprevious ~~active markets. The Company uses the principal market, defined as the market with the greatest volume and level of activity for the crypto assets at the measurement date.~~page)

~~Crypto~~New ~~assets~~accounting are classified as long-term assets in the consolidated balance sheets because management does not expect to utilize or liquidate such assets within twelve months of the balance sheet date. This assessment is based on management’s current holding strategy and is consistent with ASC 210, Balance Sheet, and prevailing SEC practice.policies

~~Recently~~Crypto ~~issued and adopted accounting standards:~~assets

The Company holds digital assets that meet the definition of crypto assets under ASC 350-60, Intangibles—Goodwill and Other—Crypto Assets. These assets are fungible digital assets secured by cryptography and recorded on distributed ledger technology. The Company’s digital assets consist primarily of Injective (INJ) tokens and USD-denominated stablecoins.

Digital assets are recognized when the Company obtains control of the assets, defined as the ability to direct the use of, and obtain substantially all of the remaining benefits from, the assets, generally upon settlement and transfer to a wallet or account under the Company’s control.

Digital assets are subsequently measured at fair value at each reporting date in accordance with ASC 350-60, with changes in fair value recognized within consolidated statements of operations in the period in which they occur.

Fair value is determined in accordance with ASC 820, Fair Value Measurement, using quoted prices in active markets for identical assets (Level 1 inputs). The Company determines fair value based on prices from its principal market, which is the market with the greatest volume and level of activity for the digital assets at the measurement date, using pricing data from major active exchanges.

Digital assets are presented in the consolidated balance sheets based on their nature and the Company’s intended use, consistent with applicable accounting guidance. The classification of digital assets as current or non-current involves management judgment based on expected holding periods and liquidity considerations.

The fair value of the Company’s digital assets is determined in accordance with ASC 820, Fair Value Measurement, using quoted prices in active markets for identical assets (Level 1 inputs). The Company determines fair value based on prices from its principal market, which is the market with the greatest volume and level of activity at the measurement date, using pricing data from major active exchanges.

Staking Income

The Company participates in staking activities related to its digital assets, whereby it earns rewards in the form of additional digital tokens for supporting blockchain network operations.

Staking rewards are recognized as income when the Company obtains control of the reward tokens, which generally occurs when the rewards are received or become claimable by the Company. The determination of when control is obtained requires judgment based on the terms of the underlying staking arrangements.

Staking rewards are measured at fair value at the time of receipt or when they become claimable, using quoted market prices in active markets (Level 1 inputs) in accordance with ASC 820, Fair Value Measurement.

Staking income is recognized within other income as a component of digital asset-related income, which is distinct from the Company’s core operating revenue streams.

Subsequent to initial recognition, reward tokens are included within digital assets and are remeasured at fair value at each reporting date, with changes in fair value recognized in earnings in accordance with the Company’s accounting policy for digital assets.

Derivative Liability

The Company’s written put options meet the definition of derivative instruments under ASC 815, Derivatives and Hedging, as they contain an underlying, require minimal initial investment, and are settled at a future date. Accordingly, these instruments are recognized as a derivative liability in the consolidated balance sheets.

Derivative instruments are initially recognized at fair value on the date the contracts are entered into. Premiums received are recorded as part of the derivative liability. Collateral posted in connection with these arrangements is accounted for separately and is not included in the measurement of the derivative.

The derivative liability is remeasured at fair value at each reporting date, with changes in fair value recognized in earnings in accordance with ASC 815-10-35.

Fair value is determined in accordance with ASC 820, Fair Value Measurement, using market-based inputs, including the price of the underlying digital assets, volatility, and remaining contractual term. These inputs are classified within Level 3 of the fair value hierarchy, depending on their observability.

Loans payable and loan receivable

The Company accounts for borrowings under the FalconX facility as financial liabilities measured at amortized cost in accordance with ASC 835, Interest. A separate loan receivable arising from related collateral and financing arrangements is recognized as a financial asset.

The loan payable and loan receivable are presented on a gross basis in the consolidated balance sheets, as the Company has separate contractual rights and obligations and does not meet the criteria for offsetting under ASC 210-20, Balance Sheet—Offsetting.

Interest on the loan payable is recognized using the effective interest method and is included in interest expense. Interest income on the loan receivable is recognized over the term of the arrangement using the effective interest method and is included in interest income.

Recently issued and adopted accounting standards

As an “emerging growth company,” as defined under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), the Company is permitted to delay adoption of new or revised accounting pronouncements applicable to public business entities until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period provided under the JOBS Act. Accordingly, the adoption dates discussed below reflect this election.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

2. Significant accounting policies (continued from previous page)

Recently Adopted Accounting Pronouncements

None.

The Company did not adopt any new accounting standards during the three months ended November 30, 2025 that had a material impact on its consolidated financial statements or disclosures.

Accounting Pronouncements Not Yet Adopted

ASU 2023-09 -– Income Taxes (Topic 740): Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, which enhances income tax disclosure requirements. byThe ~~mandating~~amendments require additional disaggregation of information in the effective tax rate reconciliation, as well as disclosure of income (loss) from continuing operations before income taxes, and ~~disclosure of~~ income tax expense and cash taxes paid by jurisdiction (federal, state, and foreign).

This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments are ~~required~~ to be applied ~~on a prospective basis~~ prospectively, ~~although~~with retrospective application is permitted. The Company is currently evaluating the impact of this ~~standard~~guidance on its consolidated financial statements and related disclosures; however, based on a preliminary assessment, the Company expects the adoption to primarily affect disclosures and does not expect a material impact on its consolidated financial position or results of operations.

ASU 2024-01- – Compensation-—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards

In March 2024, the FASB issued ASU 2024-01, which clarifies whether profits interest awards and similar instruments are within the scope of ~~ASC~~ Topic 718. The ~~ASU~~amendments ~~provides~~provide guidance and illustrative examples to assist entities in determining the appropriate accounting treatment, including whether such awards should be ~~accounted~~classified ~~for~~ as equity~~-classified~~ awards, liability~~-classified~~ awards, or ~~outside the scope of Topic 718 and instead~~ accounted for under ~~ASC~~other ~~Topic 710~~applicable guidance.

This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments ~~should~~are to be applied ~~on a prospective basis~~prospectively, ~~although~~with retrospective application is permitted. The Company is currently evaluating the impact of this ~~standard~~ guidance on its consolidated financial statements and related disclosures; however, based on a preliminary assessment, the Company does not expect the adoption of this guidance to have a material impact on its consolidated financial position or results of operations.

ASU 2025-01- – Income Statement—Reporting Comprehensive Income ~~- Expense Disaggregation Disclosures~~ (Subtopic 220-40): ~~Clarifying~~Expense ~~the Effective~~Disaggregation ~~Date~~Disclosures

In January 2025, the FASB issued ASU 2025-01, which clarifies the effective dates ~~related~~for to the expense- disaggregation disclosure requirements previously issued ~~in 2024~~. ~~The~~Public ~~ASU confirms that public~~ business entities are required to ~~present~~apply the ~~new~~amendments ~~disclosures~~ in annual periods beginning after December 15, 2026, and in interim periods beginning after December 15, 2027.

~~Because~~As this ~~amendment~~guidance affects ~~only~~disclosure ~~the~~requirements ~~timing of disclosures~~only, the Company does not expect adoption ~~of this guidance~~ to have a material impact on its consolidated financial statements.

~~ASU 2025-03 - Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in a Variable-Interest Entity~~9

In June 2025, the FASB issued ASU 2025-03, which clarifies how to determine the accounting acquirer when a business combination is primarily effected through an exchange of equity interests and the legal acquiree is a variable-interest entity (“VIE”) that meets the definition of a business. The guidance requires entities to apply the acquisition-accounting factors in ASC 805-10-55-12 through 55-15, rather than relying solely on the VIE consolidation model.

This guidance is effective for annual periods beginning after December 15, 2026, with early adoption permitted. The amendments should be applied on a prospective basis, although retrospective application is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~ 2026

(Expressed in US Dollars)

3. Significant accounting judgments, estimates and assumptions

The preparation of condensed interim consolidated financial statements requires the directors and management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and revenue and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical estimates and judgments applied by management that most significantly affect the Company’s condensed interim consolidated financial statements. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Investments (level 3)

Where the fair values of financial assets and ~~financial~~ liabilities recorded onin the ~~consolidated~~condensed ~~statements~~interim ofconsolidated financial ~~position,~~statements cannot be ~~derived~~ ~~from active markets~~derived, they are determined using a variety of valuation techniques. The inputs to these models are derived from observable market data where possible;. ~~where~~Where observable market data is not available, ~~Management~~management’s judgment is required to establish fair values.

Crypto assets (fair value measurement and classification)

The valuation of digital assets requires management judgment in determining the principal market, selecting appropriate pricing sources, and assessing the classification of holdings as current or non-current based on intent and expected holding period. While fair value is based on observable market prices (Level 1 inputs), differences in pricing sources, market liquidity, and timing of measurements could result in different valuations. In addition, the determination of when control is obtained for digital assets and staking rewards requires judgment based on the terms of the underlying arrangements.

Expected credit losses (ECL)

The Company applies the expected credit loss model to accounts receivable in accordance with ASC 326. Determining the allowance for expected credit losses requires management judgment in assessing historical collection trends, customer creditworthiness, current economic conditions and forward-looking information. Because these factors may change over time, the allowance involves a degree of estimation uncertainty, and actual credit losses may differ from management’s estimates.

Share -based compensation

The Company accounts for share-based compensation in accordance with ASC 718 —- Compensation —- Stock Compensation. The Company’s share-based awards include stock options and restricted stock units (“RSUs”) granted to directors, officers, and employees.

Stock options

Certain stock options granted in prior fiscal years contain a service-based vesting period of up to 36 months. The fair value of these options is determined on the grant date using the Black-Scholes option-pricing model, which incorporates assumptions regarding share-price volatility, risk-free interest rates, expected dividend yields, and expected option life. Compensation expense for these awards is recognized on a straight-line basis over the vesting period.

During the current fiscal year, the Company granted stock options to directors and employees for services previously rendered. These awards were fully vested at the grant date and therefore did not contain any service or performance vesting conditions. The fair value of these immediately vested options was determined using the Black-Scholes model as of the grant date, and the entire fair value was recognized immediately as share-based compensation expense in the condensed interim consolidated statements of ~~income~~operations and comprehensive loss.

Restricted stock units (RSUs)

RSUs granted during the current fiscal year were also issued in consideration of past services and were fully vested at the date of grant. The fair value of RSUs is based on the market price of the Company’s common shares on the grant date, and the full fair value was recognized as compensation expense immediately upon issuance.

The Company records share-based compensation expense separately. For awards that are fully vested upon grant, no estimates of forfeitures, expected terms, or future service periods are required. For any future awards subject to vesting, compensation expense will be recognized on a straight-line basis over the requisite service period.

Warrant liability

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480 and ASC 815. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the condensed interim consolidated statements of operations and comprehensive loss.

~~The~~Certain warrants ~~are~~issued by the Company do not ~~precluded~~meet ~~from~~the criteria for equity classification under ASC 815 and are therefore accounted for as ~~such~~liabilities. These warrants are initially recognized at fair value on the date of issuance and ~~will~~are besubsequently onremeasured ~~each~~at ~~consolidated balance~~fair ~~sheet~~value ~~date~~at ~~thereafter.~~each Asreporting date, ~~the~~with ~~warrants~~changes ~~are~~recognized ~~equity~~in ~~classified,~~the ~~they~~condensed ~~are~~interim ~~initially~~consolidated ~~measured~~statements atof ~~fair~~operations ~~value~~and ~~(or~~comprehensive ~~allocated value)~~loss.

810

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~ 2026

(Expressed in US Dollars)

3. Significant accounting judgments, estimates and assumptions (continued from previous page)

Derivative financial instrument

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”). For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at ~~its~~ fair value on the ~~grant~~ date ~~and~~of isissuance ~~then~~and subsequently ~~re-valued~~remeasured at fair value at each reporting date, with changes in the fair value reported in the condensed interim consolidated statements of operations and comprehensive loss. For derivative instruments that are classified as equity, the derivative instruments are initially measured at fair value (or allocated value), and subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity.

Going concern

The interim condensed interim consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the settlement of liabilities in the ordinary course of business. The carrying values of the Company’s assets, including property and equipment and intangible assets, and the related depreciation and amortization are based on management’s assessment of their estimated useful lives and recoverability, which assume that the Company will continue as a going concern.

Should the Company be unable to continue as a going concern, the carrying values of non-current assets may not be recoverable, and adjustments could be required to reduce the carrying amounts of such assets, revise their estimated useful lives, or recognize impairment losses, and to reclassify certain assets and liabilities to current. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty, as management has concluded that the going-concern basis of accounting remains appropriate.

4. Investment

The fair value of the Company’s 5% investment in a private company is determined using Level 3 inputs under ASC 820. Management assesses fair value annually using a market-approach valuation technique, considering factors such as the investee’s financial performance, recent arm’s-length transactions, and comparable private-company multiples. For the ~~three~~six months period ended ~~November~~February 3028,2026 ~~2025~~ and year ended August 31, 2025, no observable changes in these inputs or in the investee’s financial condition were identified~~; accordingly,~~. Accordingly, management concluded that the fair value remained unchanged. Any foreign exchange translation differences are ~~recorded~~recognized ~~through~~in earnings.

5. Intangible assets

During the ~~three~~six months period ended ~~November~~February 3028, ~~2025~~2026, the Company capitalized development costs related to internally generated software classified as intangible assets. Amortization is recognized on a straight-line basis over the estimated useful life of the underlying assets.

	Intangible assets
Cost
Balance, August 31, 2024	$	3,168,130
Additions		944,187
Translation adjustment		(95,104	)
Balance, August 31, 2025	$	4,017,213
Additions		~~208~~395,~~905~~617
Translation adjustment		~~(16~~84,~~961~~911	)
Balance, November 30, 2025	$	4,209,157
Balance, February 28, 2026	$	4,497,741
Accumulated amortization
Balance, August 31, 2024	$	956,355
Amortization		592,942
Translation adjustment		(27,857	)
Balance, August 31, 2025	$	1,521,440
Amortization		~~182~~386,~~493~~009
Translation adjustment		(633,~~568~~904	)
Balance, November 30, 2025	$	1,697,365
Balance, February 28, 2026	$	1,941,353
Net carrying value
November 30, 2025	$	2,511,792
February 28, 2026	$	2,556,388
August 31, 2025	$	2,495,773

911

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

6. ~~Share~~Crypto ~~capital~~assets at fair value

The following table presents the changes in the Company’s digital assets measured at fair value for the period:

	#		$
Balance, August 31, 2025		-		-
Crypto assets acquired through financing		1,002,651		11,896,002
Balance, November 30, 2025		1,002,651		11,896,002
Crypto assets acquired through financing		560,646		1,999,988
Crypto assets acquired through staking income		54,474		221,718
Crypto assets received in exchange for equity issuance		5,593,525		31,323,740
Crypto assets, February 28, 2026		7,211,296		45,441,448
Net change in fair value		-		(23,026,713	)
Translation adjustment				12,399
Balance, February 28, 2026		7,211,296	$	22,427,134

Digital assets acquired through financing reflect assets obtained as part of structured financing arrangements. The net change in fair value represents non-cash unrealized losses recognized during the period based on market price movements.

Fair Value Changes Recognized in Earnings

During the six months ended February 28, 2026, the Company recognized a net unrealized loss of $23,026,713 million related to changes in the fair value of its digital assets. These losses are non-cash in nature and reflect market price volatility during the period. Such amounts are presented within operating loss in the consolidated statements of operations and comprehensive loss.

7. Share capital

Authorized share capital

The authorized share capital of the Company consists of an unlimited number of common shares with no par value.

Schedule of authorized share capital

	#		$
Balance, August 31, 2024		421,342		8,559,856
Issuance of common shares against S3		19,133		232,708
Issuance of common shares against prefunded warrants		64,200		780,769
Issuance of common share against S1		500,000		834,000
Issuance of common shares against warrants conversion		336,266		1,701,398
Share issuance costs		-		(487,263	)
Balance, August 31, 2025		1,340,941		11,621,468
Issuance of common shares against warrants conversion		5,000		35,370
Issuance of common shares against PIPE - cash		5,776,304		21,949,955
Balance, November 30, 2025		1,345,941		11,656,838
Issuance of common shares against PIPE – in-kind (digital assets)		18,866,396		31,323,740
Issuance of common shares against warrants conversion		5,010		35,422
Issuance of common shares against share-based benefits Note 8		100,000		142,000
Share issue costs		-		(2,033,995	)
Balance, February 28, 2026		26,088,651		63,038,590

~~November 14, 2024 - Issuance under Form S-3 Offering~~12

On November 14, 2024, the Company issued 382,667 common shares (pre-reverse) at $0.60 per share, for total gross proceeds of approximately $232,708.

Following the 1-for-20 reverse stock split implemented in July 2025, this issuance is presented as 19,133 common shares at $12.00 per share.

January – May 2025 - Exercise of Prefunded Warrants

Between January 2025 and May 2025, holders of prefunded warrants exercised 1,284,000 warrants (pre-reverse), resulting in the issuance of 64,200 common shares (post-reverse) for value of $780,769.

May 5, 2025 - Form S-1 Offering

On May 5, 2025, the Company completed a registered public offering under Form S-1, issuing 10,000,000 common shares (pre-reverse) at $0.15 per share (or 500,000 common shares post-reverse) for gross proceeds of approximately $1.5 million.

In connection with this offering, the Company issued 10,000,000 detachable warrants pre reverse split (500,000 detachable warrants after reverse split) each exercisable for one common share at $0.15 per share pre-reverse, or $3.00 per share post-reverse. These warrants were assessed under ASC 480 and ASC 815, Derivatives and Hedging and determined to require liability classification, as certain settlement features are not indexed solely to the Company’s own stock.

The warrant liability was initially recognized at fair value of $659,190 on the issuance date using the Black-Scholes option-pricing model and is remeasured at each reporting date, with changes in fair value recognized in the consolidated statements of operations and comprehensive loss.

Residual proceeds of $834,000 were allocated to common stock within equity, net of issuance costs.

July – November 2025 - Warrant Conversions

During July and August, a total of 336,266 warrants were exercised at an exercise price of $3.00 per share, and on September 2025, another 5,000 warrants were exercised, resulting in the total issuance of 341,266 common shares. Upon exercise, the related portion of the warrant liability was reclassified to equity.

Reverse Stock Split

On July 16, 2025, the Company effected a 20-for-1 reverse stock split of its issued and outstanding common shares (the “Reverse Split”). As a result of the Reverse Split, every twenty (20) common shares issued and outstanding prior to the effective date were automatically combined into one (1) common share. No fractional shares were issued in connection with the Reverse Split; any fractional entitlements were rounded in accordance with the Company’s governing documents.

The Reverse Split did not affect the total shareholders’ equity, the carrying amount of common shares, or the par value of the Company’s common shares.

All share, per-share, warrant, option, and RSU figures presented in these consolidated financial statements and accompanying notes have been retroactively adjusted to reflect the Reverse Split for all periods presented.

Summary of Share Capital

As of November 30, 2025, the Company had 1,345,941 common shares issued and outstanding (August 31, 2025 - 1,340,941) and no preferred shares outstanding.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

7. ~~Warrants~~Share capital (continued from previous page)

January 6, 2026 – Share issued against PIPE

On January 6, 2026, the Company completed a private investment in public equity (“PIPE”) financing, pursuant to which it issued an aggregate of 24,642,700 common shares.

	●	5,776,304 common shares were issued for cash proceeds of $21.9 million.
	●	18,866,396 common shares were issued in exchange for digital assets with a fair value of $31.3 million at the date of issuance.

The Company incurred share issuance costs of $2.0 million related to the PIPE financing, which were recorded as a reduction to additional paid-in capital.

During the three months ended February 28, 2026, the Company issued 100,000 common shares to a third-party service provider in exchange for legal services. The shares were measured at their fair value on the grant date, resulting in stock-based compensation expense of $142,000, which has been recognized in the consolidated statements of operations. The issuance of these shares is reflected within stockholders’ equity.

8. Warrants

Common Share purchase warrant

	#		$
Balance, August 31, 2024		82,650		2,955,944
Share-based compensation expense		-		146,870
Balance, August 31, 2025		82,650		3,102,814
Balance, November 30, 2025		82,650		3,102,814
Balance, February 28, 2026		82,650		3,102,814

~~b) Warrant Liability~~13

~~The Company issued 1,313 warrants at an exercise price of $80.00 with an expiry date of October~~Pineapple ~~31,~~Financial ~~2028 and on May 5, 2025 the Company issued 500,000 warrants at an exercise price of $3~~Inc.00 with an expiry date of May 05, 2030. As per ASC 815 the instruments did not meet the criteria to be classified as equity instruments as such were classified as a financial liability. Below is the continuity of the warrant liability valuation.

~~The~~Notes ~~warrants~~to ~~issued~~the onCondensed ~~November~~Interim 3,Consolidated ~~2023~~Financial ~~were~~Statements ~~valued using the Black~~-~~Scholes~~ method with the share price of $3.44, exercise price of $80, term of 5 years, risk free rate of 3.49% and volatility of 180% at issuance and share price of $3.44, exercise price of $80, term of 2.92 years, risk free rate of 3.49% and volatility of 180% as at November 30, 2025.Unaudited

~~The~~For ~~warrants~~period ~~issued~~ended inFebruary ~~May 2025~~28, were valued using the Black-Scholes method with the share price of $3.44, exercise price of $3.00 term of 5 years, risk free rate of 3.60% and volatility of 180.33% at issuance and share price of $3.44, exercise price of $3.00, term of 4.43 years, risk free rate of 3.60%, and volatility of 180.33% as at November 30, 2025.2026

(Expressed in US Dollars)

8. Warrants (continued from previous page)

Warrant liability

The warrants issued in September 25, 2025, became effective on January 6, 2026 upon satisfaction of the related closing conditions. These warrants were valued using the Black-Scholes method with the share price of $0.696, exercise price of $3.80 term of 5 years, risk free rate of 3.51% and volatility of 180.05%.

Schedule of warrant liability

	#			$
Fair Value of Warrants at August 31, 2024		51,313			41,520
Change in fair value of expiration of warrants relating to conversion debt		(50,000	)		(23,873	)
Issuance of warrants against S1		500,000			659,190
Conversion of warrants into shares		(336,266	)		(674,914	)
Change in fair value of warrants liability		-			632,410
Translation adjustment		-			(1,580	)
Fair Value of Warrants at August 31, 2025		165,047			632,753
Conversion of warrants into shares		(5,~~000~~010	)		(20,~~373~~388	)
Change in fair value of warrants liability		-			(97,430	)
Warrants issued		1,039,346			1,325,558
Translation adjustment		-			(2,225	)
Change in fair value of warrants liability		-			(1,199,502	)
Fair Value of Warrants at November 30, 2025		160,047			512,725
Translation adjustment		-			4,767
Fair Value of Warrants at February 28, 2026		1,199,383			743,188

Schedule of estimate fair value of warrant

	February 28,2026		August 31, 2025

Weighted average estimated fair value per common share	$	0.70		2.63
Weighted average exercise price of the warrant	$	3.78		3.20
Weighted average expected life of the warrant		4.52		4.67

	November 30, 2025		August 31, 2025
Weighted average estimated fair value per common share	$	3.44		2.63
Weighted average exercise price of the warrant	$	3.20		3.20
Weighted average expected life of the warrant		4.27		4.67

9. Share-based benefits reserve

As at November 30, 2025, the warrants had a weighted-average intrinsic value of $0.24 per warrant or total $38,411 (August 31, 2025 – $167,008).

8. Share-based benefits reserve

The Company maintains two equity-based compensation plans, 2021 Stock Option Plan and the 2022 Omnibus Equity Incentive Plan, which are intended to attract, retain, and motivate directors, officers, employees, and consultants by providing share-based compensation aligned with the Company’s long-term performance.

Each stock option granted under the plans entitles the holder to acquire one common share of the Company upon exercise. No amounts are payable by the recipient on receipt of the option. The options carry no dividend or voting rights and may be exercised after vesting and prior to their expiry date. The total number of common shares reserved for issuance under the plans is limited to 10% of the Company’s issued and outstanding common shares at any given time.

During the year ended August 31, 2025, the Company granted 46,437 restricted share units (“RSUs”) and 73,570 stock options pursuant to resolutions of the Board of Directors dated July 16, 2025. These awards were granted in recognition of past performance and contributions and were therefore fully vested upon grant, with no remaining service or vesting conditions. The RSUs were valued at the market price of the Company’s common shares on the grant date, and the stock options were valued using the Black-Scholes option-pricing model. ~~The Company recognized stock-based compensation expense of $235,006 related to these grants during the year ended August 31, 2025.~~

No additional stock options or RSUs were granted, exercised, forfeited, or cancelled during the three months ended November 30, 2025, and no stock-based compensation expense was recognized during the quarter.

Schedule of options outstanding granted

	November 30, 2025				August 31, 2025
	February 28, 2026				August 31, 2025
	Number of Options		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price
	#		$		#		$
Balance, beginning of year		101,854		28.08		28,284		74.40
Granted during the year		-		-		73,570		1.30
Balance as at year end		101,854		28.08		101,854		28.08
Exercisable as at period end		101,854		28.08		101,854		28.08

As of ~~November~~February 3028, ~~2025~~2026, all outstanding stock options were fully vested and exercisable. The options have a contractual term of ten years from the grant date,. ~~with~~Options ~~the options~~ granted on July 16, 2025 ~~expiring~~expire on July 16, 2035. The weighted-average remaining contractual life of options outstanding as of ~~November~~February 3028, ~~2025~~2026 was ~~approximately 7~~ 6.325 years.

1114

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

910. Right-of-use asset and lease liability

The Company leases all of its office premises in Ontario, Canada under non-cancellable operating lease arrangements accounted for under ASC 842 - Leases.

Ontario Offices

The Company’s head office premises in Ontario comprise approximately 4,894 square feet under a lease that was extended to January 1, 2030. In addition, during fiscal 2024 the Company acquired 8,368 square feet of adjacent space from the same landlord, with the new lease also expiring on January 1, 2030. The combined total area occupied in Ontario is 13,262 square feet.

For purposes of measuring the related lease liability and right-of-use asset under ASC 842, the Company applied an incremental borrowing rate (“IBR”) of 6%, which reflects the Company’s estimated cost of borrowing on a secured basis over a similar term.

British Columbia Office (Lease Surrender)

On May 29, 2023, the Company entered into a lease for 1,454 square feet of office space located at Unit 601 – 2950 Glen Drive, Coquitlam, British Columbia, for a 5five-year term commencing August 1, 2023 and originally expiring July 31, 2028.

Subsequently, pursuant to a Lease Surrender Agreement with the landlord (RPMG Holdings Ltd.) dated August 21, 2025, the Company agreed to surrender and terminate the lease effective July 31, 2025. Under the terms of the agreement, the Company paid a surrender fee of $24,875 plus GST, and the security deposit was forfeited to the landlord in full settlement of all obligations under the lease.

Lease Surrender Agreement

The surrender resulted in a derecognition (“deletion”) of the associated right-of-use asset and corresponding lease liability in fiscal 2025, with no material gain or loss recognized.

The following schedule shows the movement in the Company’s right-of-use asset:

Schedule of right-of-use asset

	Right-of-use asset
Balance, August 31, 2024		1,134,984
Derecognition of asset		(139,723	)
Translation adjustment		(28,716	)
Balance, August 31, 2025	$	966,545
Translation adjustment		(419,~~010~~726	)
Balance, November 30, 2025	$	962,535
Balance, February 28, 2026	$	986,271

The right-of-use asset is being depreciated on a straight-line basis over the remaining lease term.

Accumulated Depreciation
Balance, August 30, 2024	$	306,310
Depreciation		187,048
Derecognition of asset		(54,337	)
Translation adjustment		(2,639	)
Balance, August 31, 2025	$	436,382
Depreciation		2960,~~696~~326
Translation adjustment		(19,~~852~~352	)
Balance, November 30, 2025	$	464,226
Balance, February 28, 2026	$	506,060
Carrying Amount
November 30, 2025	$	498,309
February 28, 2026	$	480,211
August 31, 2025	$	530,163

1215

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

910. Right-of-use asset and lease liability (continued)

The following schedule shows the movement in the Company’s lease liability during the period ended:

Schedule of lease liability

	November 30, 2025			August 31, 2025
	February 28, 2026			August 31, 2025
Balance, beginning of year	$	699,959		$	977,107
Derecognition of lease		-			(85,151	)
Interest expense		1020,~~096~~000			51,431
Lease payments		(4389,~~979~~328	)		(206,185	)
Translation adjustment		(213,~~857~~774	)		(37,242	)
Balance, end of period	$	~~663~~644,~~219~~405		$	699,959
Current		~~140~~146,~~288~~296			138,859
Non-current		~~522~~498,~~931~~109			561,100
	$	~~663~~644,~~219~~405		$	699,959

The following table provides a maturity analysis of the Company’s lease liability. The amounts disclosed in the maturity analysis are the contractual undiscounted cash flows before deducting interest or finance charges:

Schedule of maturity lease liability

2026		~~140~~89,~~288~~261
2027		~~175~~178,~~756~~521
2028		~~186~~189,~~840~~779
2029		~~194~~197,~~757~~820
2030		8182,~~149~~425
Total lease liability	$	~~778~~737,~~790~~806

1316

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

10. Crypto Assets

As of November 30, 2025, the Company held crypto assets that were measured at fair value and presented within long term assets in the accompanying condensed interim consolidated balance sheets.

During the quarter ended November 30, 2025, the Company acquired 1,002,651 units of crypto assets-Injective. The assets were received upon settlement through a third-party digital asset execution and custody platform, at which point the Company obtained control of the assets and recognized them at cost, which totaled $11,896,002.

As of November 30, 2025, the fair value of the Company’s crypto assets was $5,764,245 based on quoted closing prices in active markets at the reporting date. The fair value measurement utilizes Level 1 inputs under the fair value hierarchy, as defined in ASC 820, Fair Value Measurement.

During the quarter ended November 30, 2025, the Company recognized a fair value loss on crypto assets of $6,140,379 million, which is included in operating expenses in the accompanying condensed interim statements of operations and comprehensive loss.

Schedule of crypto assets

11. Related party transactions and balances

1. ~~Voltedge~~The ~~Ltd~~Injective Foundation became one of the Company’s largest shareholders following the completion of a private placement on January 6, 2026. As a significant shareholder, the Injective Foundation is anconsidered ~~entity~~a ~~associated~~related party in accordance with ASC 850, Related Party Disclosures. The Injective Foundation is part of a broader ecosystem supporting the Company’s digital asset treasury strategy. The Injective Foundation, as the Company’s largest shareholder, may have the ability to exert significant influence over the Company’s strategic direction and financing initiatives. During the three and six months ended ~~November~~February 3028, ~~2025~~2026, the Company entered into a secured borrowing arrangement with FalconX ~~Bravo~~Charlie Inc. (the “FalconX Loan”). In connection with this arrangement, ~~which~~the ~~included~~Injective Foundation provided a guarantee ~~provided~~supporting bythe ~~Voltedge~~Company’s ~~Ltd~~obligations under the facility (see Note 12). inThe ~~connection~~Company ~~with~~also ~~the~~entered into related financing and collateral arrangements aswith ~~mentioned~~FalconX in ~~note~~connection 12with this facility, including a loan receivable of $5,000,000.

As of November 30, 2025, the Injective Foundation did not hold any equity ownership interest in the Company, and neither the Injective Foundation nor Voltedge Ltd. had control over, or significant influence on, the Company. However, the FalconX Loan and the related guarantee arrangements were entered into in connection with the Company’s Injective Digital Asset Treasury Initiative, a strategic transaction pursuant to which the Injective Foundation became the Company’s largest shareholder subsequent to the reporting period, following the completion of a private placement on that closed on January 4, 2026.

Information regarding FalconX Loan and related gurantee arrangements, including events occurring subsequent to November 30, 2025, is disclosed in Note 18, Subsequent Events, for further information.

As of November 30, 2025, the outstanding balance under the FalconX Loan totaled $11.98 million, inclusive of accrued interest. Refer to Note 12 for additional information regarding the terms, security, and subsequent repayment of the FalconX Loan.

Compensation of key management personnel includes the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer:

Schedule of related party transactions

	November 30, 2025		November 30, 2024
	February 28, 2026		February 28, 2025
	$		$
Salaries, Wages and benefits		~~123~~250,~~358~~594		~~176~~320,~~000~~630

Last period figures also includes payroll of Chief Strategy Officer, who resigned in March 2025.

During the year ended August 31, 2025, two directors of the Company advanced an aggregate amount of $~~629~~657,~~728 to~~690 ~~the Company~~ to support ~~its~~ working capital requirements. The advances ~~are~~were unsecured, ~~bear~~ bore interest at ~~a rate of~~ 12% per annum, and ~~are~~were repayable on demand.

As of ~~November 30~~February 28, ~~2025~~2026, the outstanding principal balance of ~~the~~these advances, ~~totaled~~together ~~$629,728, excluding~~with all accrued interest., ~~Interest~~had ~~expense~~been ~~related~~fully torepaid. The ~~these~~repayment ~~advances~~was isfunded ~~recognized~~from inproceeds ~~interest expense~~received ~~and~~in ~~bank~~connection ~~charges~~with in the ~~condensed~~Company’s ~~interim~~private ~~consolidated~~placement ~~statements~~completed ofon ~~operations~~January ~~and~~6, ~~comprehensive loss - unaudited as interest expense and bank charges in condensed interim consolidated statements of operations and comprehensive loss~~2026.

~~The terms of the advances were determined by management to be comparable to those available from third-party lenders under similar circumstances.~~17

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

12. Loans ~~Loan~~ payable, collateral and loans receivable

During the three months ended November 30, 2025, the Company entered into aan initial secured borrowing arrangement with FalconX ~~Bravo~~Charlie Inc. (“FalconX”), pursuant to which ~~the~~it ~~Company~~obtained ~~borrowed~~financing anunder ~~aggregate~~a ~~principal~~fixed-term ~~amount of $11,896,002 (the “FalconX Loan”)~~facility. ~~Subsequent to the initial borrowing, additional interest accrued on the FalconX Loan, and as of November 30, 2025, the outstanding balance totaled $11,983,087, inclusive of accrued interest.~~

~~The~~Subsequently, on ~~FalconX~~January ~~Loan bears~~16, ~~interest~~2026, atthe Company entered into a ~~stated~~second amended and restated loan agreement, which amended and superseded the prior arrangement and increased the total borrowing capacity to $20.0 million, with an interest rate of 1110.50% per annum, ~~calculated~~and ona ~~the~~contractual ~~outstanding~~maturity ~~principal~~date of ~~balance~~January 16, 2027.

~~Interest~~As ~~expense~~of isFebruary ~~recognized in accordance with ASC 835~~28, ~~Interest. For the quarter ended November 30~~2026, ~~2025,~~ the Company ~~recognized~~had ~~interest expense of~~ $~~236~~18,~~884~~972,000 outstanding ofunder ~~which~~this ~~$87~~facility,~~084.95~~ ~~was~~which ~~paid~~is ~~during~~presented ~~the~~within current ~~period.~~liabilities ~~The remaining $149,799.28 was accrued and is included~~ in ~~accounts payable~~the ~~and~~consolidated ~~accrued~~balance ~~liabilities~~sheets asbased ofon ~~November~~its ~~30,~~contractual ~~2025~~terms.

~~Security~~During the six months ended February 28, 2026, the Company recognized expense of $584,890, which has been classified within interest expense and ~~Guarantees~~bank charges in the condensed interim consolidated statements of operations and comprehensive loss.

AsCollateral ofand ~~November 30, 2025, the Company had an outstanding principal balance of $11,983,087 under the FalconX~~ loan ~~facility.~~receivable ~~The Company’s obligations under the FalconX loan are secured through a collateral and guarantee structure involving Voltedge Ltd.~~arrangement

~~Pursuant~~In toconnection with the ~~applicable~~amended ~~financing arrangements~~facility, ~~Voltedge Ltd. has provided a guarantee in respect of~~ the Company’s ~~obligations under the FalconX loan. The guarantee~~ is ~~supported~~required byto ~~pledges~~maintain ~~of specified digital assets~~collateral, ~~consisting of Injective protocol tokens, which serve as collateral for the loan.~~including:

The collateral is subject to ongoing collateral maintenance and margin requirements based on its fair value. Under the terms of the financing agreements, Voltedge Ltd. is contractually required to provide additional collateral or margin support in the event that the fair value of the pledged Injective tokens declines below the required maintenance threshold specified in the loan agreements. Margin support may be satisfied through the contribution of additional Injective tokens or other acceptable collateral, as defined in the financing arrangements.

	●	Crypto assets (INJ tokens); and
	●	A minimum of $5.0 million in cash collateral as either U.S. dollar or U.S. dollar-denominated stablecoins, held in controlled accounts

~~The~~Separately, ~~guarantee~~during ~~and collateral arrangements do not result in~~ the ~~transfer~~three ofmonths ~~ownership~~ended orFebruary ~~control~~28, of2026, the Company’s ~~digital~~entered ~~assets~~into ~~to Voltedge~~a ~~Ltd.,~~separate ~~except~~lending ~~for~~arrangement ~~customary~~with ~~lender~~FalconX, ~~rights~~whereby ~~that~~it ~~may arise upon the occurrence of an event of default~~advanced $5,000,000 ~~including the right~~ to ~~enforce security interests in accordance with~~ the ~~terms of the loan and collateral agreements~~counterparty.

~~Refer~~This toamount ~~Note~~is 10presented -as ~~Crypto~~a ~~Assets~~loan ~~for~~receivable ~~further~~within ~~information~~current ~~regarding the Company’s digital asset holdings and valuation~~assets.

The loan receivable:

	●	Bears interest at 8.0% per annum
	●	Has a contractual maturity date of April 28, 2026
	●	Is repayable on demand or in accordance with the terms of the collateral arrangements
	●	Can be used to satisfy certain of the cash collateral requirements under the Loans Payable

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended February 28, 2026

(Expressed in US Dollars)

12. Loans payable and loans receivable (continued from previous page)

Security and guarantees

The Company’s obligations under the FalconX Loan are secured through a collateral and guarantee structure involving the Injective Foundation. In connection with the financing arrangements, the Injective Foundation has provided a guarantee in respect of the Company’s obligations under the FalconX Loan.

The guarantee is supported by pledges of specified digital assets, consisting primarily of Injective protocol tokens, which serve as collateral for the loan. The collateral is subject to ongoing collateral maintenance and margin requirements based on its fair value. Under the terms of the financing agreements, the Injective Foundation is contractually required to provide additional collateral or margin support in the event that the fair value of the pledged digital assets declines below the required maintenance threshold specified in the loan agreements. Margin support may be satisfied through the contribution of additional digital assets or other acceptable collateral, as defined in the financing arrangements.

The Company also entered into related financing and collateral arrangements with FalconX in connection with this facility, including a loan receivable of $5,000,000, representing amounts advanced as part of the collateral structure. As a result, the Company reflects both a loan receivable and a corresponding loan payable on its consolidated balance sheet, representing the economic substance of the arrangement.

The guarantee and collateral arrangements do not result in the transfer of ownership or control of the Company’s digital assets to the Injective Foundation, except for customary lender rights that may arise upon the occurrence of an event of default, including the right to enforce security interests in accordance with the terms of the loan and collateral agreements.

As of February 28, 2026, the Company was in compliance with all covenants and collateral maintenance requirements under the FalconX Loan. The Company met all required margin and collateral thresholds during the period.

Refer to Note 6 – Digital Assets for further information regarding the Company’s digital asset holdings and valuation.

Relationship Disclosure

~~Voltedge~~The ~~Ltd.~~Injective isFoundation ~~not~~became aone ~~subsidiary, parent, or affiliate~~ of the Company’s ~~and~~largest isshareholders anfollowing ~~independent entity associated with~~ the ~~Injective~~completion ~~Foundation. As~~ of ~~November~~a ~~30,~~private ~~2025,~~placement ~~the~~on ~~Company did not hold any equity ownership interest in~~January 6, ~~nor~~2026. ~~exercise~~As ~~control~~a or significant ~~influence over~~shareholder, ~~Voltedge~~ ~~Ltd. or~~ the Injective Foundation. ~~Similarly,~~is asconsidered ofa ~~that~~related ~~date,~~party ~~neither Voltedge Ltd. nor the Injective Foundation held any equity ownership interest~~ in, oraccordance ~~exercised~~with ~~control~~ASC ~~or significant influence over~~850, ~~the~~Related ~~Company~~Party Disclosures.

~~During~~The ~~the~~Injective ~~three~~Foundation ~~months~~is ~~ended~~part ~~November~~of ~~30,~~a ~~2025,~~broader ecosystem supporting the Company’s ~~entered~~digital ~~into~~asset atreasury ~~secured~~strategy ~~borrowing~~and, ~~arrangement~~as ~~with~~a ~~FalconX~~significant shareholder, ~~Bravo~~may ~~Inc.,~~have ~~which~~the ~~included a~~ability ~~guarantee~~to ~~provided~~exert bysignificant ~~Voltedge~~influence ~~Ltd.~~over ~~The~~the ~~guarantee~~Company’s ~~was~~strategic ~~provided~~direction inand ~~connection~~financing ~~with~~initiatives. During the ~~Company’s~~three ~~Injective~~and ~~Digital~~six ~~Asset~~months ~~Treasury Initiative~~ended February 28, a2026, ~~strategic~~the ~~transaction~~Company ~~that~~entered ~~was~~into ~~completed~~a ~~subsequent~~secured toborrowing arrangement with FalconX Charlie Inc. (the ~~reporting~~“FalconX ~~period~~Loan”).

~~Subsequent~~In toconnection ~~November~~with ~~30,~~this ~~2025~~arrangement, the Injective Foundation, ~~through~~provided a ~~private~~guarantee ~~placement~~supporting ~~transaction that closed on January 4, 2026, became~~ the Company’s ~~largest~~ ~~shareholder.~~obligations ~~Although~~under the ~~Injective Foundation was not a shareholder of the Company as of November 30, 2025~~ facility.

Repayment ~~and Subsequent Events~~

The FalconX Loan contains customary events of default, ~~and~~ collateral ~~protection~~maintenance ~~provisions.~~requirements, ~~The~~and ~~Company~~margin ~~intended~~provisions, toincluding ~~repay the FalconX Loan~~requirements ~~from~~to ~~the~~maintain ~~proceeds~~specified ofcollateral ~~the~~coverage ~~$100 million financing transaction, that closed on January 4, 2025~~ratios. ~~Subsequent~~As toof ~~November~~February 3028, ~~2025~~2026, the Company ~~and~~was ~~FalconX~~in ~~agreed~~compliance towith ~~extend~~all ~~the~~covenants ~~repayment~~and ~~period~~terms byof ~~one~~the ~~month~~agreement.

~~Classification~~19

AsPineapple ofFinancial ~~November 30, 2025, the FalconX loan was contractually repayable upon the closing of the Company’s $100 million equity financing transaction~~Inc. Because the repayment obligation was triggered by an event expected to occur within twelve months of the balance-sheet date, and the loan did not contain a contractual maturity date extending beyond twelve months as of November 30, 2025, the FalconX loan is classified as a current liability in the accompanying condensed consolidated balance sheets in accordance with ASC 470, Debt.

~~Subsequent~~Notes to ~~November 30, 2025~~ the ~~Company~~Condensed ~~and~~Interim ~~FalconX~~Consolidated ~~agreed~~Financial toStatements ~~extend the repayment period by one additional month. This extension was agreed after the balance~~-~~sheet~~ ~~date and is considered a subsequent event that does not affect the classification of the FalconX loan as of November 30, 2025.~~Unaudited

For period ended February 28, 2026

(Expressed in US Dollars)

13. Deferred government grant

Government grants are recognized when there is reasonable assurance that the grants will be received and the Company will comply with the conditions. The grants is deferred and recognized as a liability and is recognized in the condensed interim consolidated financial statements of operations and comprehensive loss - unaudited over the useful life of the intangible asset.

As of ~~November~~February 3028, ~~2025~~2026, the Company had a deferred government incentive balance of $~~286~~266,~~757~~229, representing the unamortized portion of Scientific Research and Experimental Development (SR&ED proceeds received in prior periods that were associated with capitalized internally generated software. Although the Company is no longer eligible for the SR&ED program, this balance continues to be recognized in income over the remaining useful life of the related intangible assets in accordance with the Company’s accounting policy.

The Company previously qualified for the Government of Canada Scientific Research and Experimental Development (“SR&ED”) program, which provides refundable tax incentives for eligible research and development activities performed in Canada.

The Company’s eligibility under the SR&ED program ceased on November 3, 2023. All SR&ED claims and related receivables were fully recognized in prior fiscal years, and no additional accruals, recoveries, or claims were recorded during the ~~three~~six months period ended ~~November~~February 3028, ~~2025~~2026.

As disclosed in prior years, a portion of the SR&ED proceeds received related to expenditures that had been capitalized as internally generated software. Accordingly, the related government incentive continues to be recognized as deferred income and is amortized to income over the useful life of the associated intangible assets in accordance with the Company’s accounting policy.

The Company does not expect any further SR&ED recoveries in future periods.

1520

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

14. Commitments and contingencies

In the ordinary course of operating, the Company may from time to time be subject to various claims or possible claims. Management believes that there are no claims or possible claims that if resolved, would either individually or collectively result in a material adverse impact on the Company’s financial position, results of operations, or cash flows. These matters are inherently uncertain, and management’s view of these matters may change in the future.

~~Schedule~~See ofnote ~~maturity~~10 ~~analysis~~related to lease ~~liability~~commitments.

See note 9 related to lease commitments.

15. Revenue

Schedule of deferred revenue

	November 30, 2025			November 30, 2024
	Six months ended
	Three months period ended
	February 28, 2026			February 28, 2025
	November 30, 2025			November 30, 2024
	$			$
Gross billing		47,~~084~~387,~~709~~821			48,~~405~~648,~~908~~249
Commission expense		3(6,~~721~~676,~~246~~704	)		3(7,~~991~~813,~~626~~115	)
Revenue		~~363~~711,~~463~~116			~~414~~835,~~282~~134
Subscription revenue		~~207~~418,~~746~~463			~~182~~368,~~180~~119
Insurance		2347,~~618~~489			-
Sponsorship revenue		6889,~~771~~310			91128,~~264~~788
Underwriting revenue		2750,~~473~~756			2757,~~343~~707
Other revenue		30112,~~656~~133			51122,~~005~~488
Total revenue		~~721~~1,~~727~~429,267			~~766~~1,~~074~~512,236


	Three months ended
	February 28, 2026			February 28, 2025
	$			$
Gross billing		3,310,819			4,242,341
Commission expense		(2,949,030	)		(3,821,489	)
Revenue		361,789			420,852

Subscription revenue		210,715			185,939
Insurance		23,870			-
Sponsorship revenue		20,154			68,630
Underwriting revenue		23,611			30,364
Other revenue		67,203			37,524
Total revenue		707,342			743,309

The Company generates revenue primarily from mortgage brokerage activities, subscription fees, underwriting services, and ancillary technology-enabled services. Revenue is disaggregated by geographic region based on the location of the customer.

For the ~~three~~six months period ended ~~November~~February 3028, ~~2025~~2026 and ~~2024~~2025, all revenue was earned in Canada, as the Company operates exclusively within the Canadian mortgage market and has no foreign revenue-generating operations.

16. Segment ~~Loan from directors~~reporting

~~Company~~The ~~entered~~Company ~~into~~operates ~~unsecured~~through ~~loan~~two ~~agreements~~reportable ~~with~~segments ~~its directors and shareholders, for total proceeds of $629,728 loans bear interest at 12 percent per annum, are non-compounding, and are repayable after filling of S1 registration statement filling~~ in ~~December~~accordance ~~2025.~~with ~~The~~ASC ~~loans are unsecured and may be repaid at any time without penalty.~~ 280:

~~As of~~● ~~November~~Mortgage ~~30,~~operations ~~2025,~~– ~~the~~mortgage ~~outstanding~~brokerage, ~~principal~~underwriting, and ~~accrued~~related ~~interest~~services ~~are~~● ~~included~~Crypto inasset ~~loans~~operations ~~payable~~– ~~within~~digital ~~current~~asset ~~liabilities.~~treasury, ~~Management believes~~staking, ~~the~~and ~~terms~~fair ofvalue ~~these loans are consistent with those available in arm’s-length commercial transactions. The loan along with accrued interest was paid in full in January 2026.~~activities

16The Chief Executive Officer and Chief Financial Officer act as the CODM and evaluate performance based on segment revenue and operating loss.

Segment results – six months ended February 28, 2026

Schedule of Segment Reporting


	Mortgage Operation						Crypto Asset Operation			Total
For the period ended	February 28, 2026			February 28, 2025			February 28, 2026			February 28, 2026			February 28, 2025
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
		$			$			$			$			$

Revenue		1,429,267			1,512,236			-			1,429,267			1,512,236

Expenses and other income
Selling, general and administrative		1,052,703			995,190			-			1,052,703			995,190
Advertising and marketing		416,852			326,945			-			416,852			326,945
Salaries, wages and benefits		350,730			828,764			-			350,730			828,764
Interest expense and bank charges		44,390			273,812			584,890			629,280			273,812
Depreciation and amortization		464,271			429,645			-			464,271			429,645
Fair value loss on crypto assets		-			-			23,026,713			23,026,713			-
Staking income		-			-			(221,718	)		(221,718	)		-
Share-based compensation		142,000			-			-			142,000			-
Government incentive		(54,369	)		(48,518	)		-			(54,369	)		(48,518	)
Total expenses		2,416,577			2,805,838			23,389,885			25,806,462			2,805,838
Loss from operations		(987,310	)		(1,293,602	)		(23,389,885	)		(24,377,195	)		(1,293,602	)
Foreign exchange (loss) gain		(157,675	)		4,021						(157,675	)		4,021
Interest income		-			-			214,334			214,334			-
Financing cost - warrants		-			-			(1,325,558	)		(1,325,558	)		-
Financing cost - Equity line of credit		-			-			(1,500,000	)		(1,500,000	)		-
Gain (loss) on change in fair value of derivative liability		-			-			15,653			15,653			-
Gain (loss) on change in fair value of warrant liability		517,615			35,591			681,887			1,199,502			35,591
Loss before income tax		(627,370	)		(1,253,990	)		(25,303,569	)		(25,930,939	)		(1,253,990	)
Income taxes (recovery) expense		-			-			-			-			-
Net loss		(627,370	)		(1,253,990	)		(25,303,569	)		(25,930,939	)		(1,253,990	)

Segment results – Three months ended February 28, 2026


	Mortgage Operation						Crypto Asset Operation			Total
For the period ended	February 28, 2026			February 28, 2025			February 28, 2026			February 28, 2026			February 28, 2025
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
		$			$			$			$			$

Revenue		707,342			743,309			-			707,342			743,309

Expenses and other income
Selling, general and administrative		659,855			572,853			-			659,855			572,853
Advertising and marketing		293,749			57,101			-			293,749			57,101
Salaries, wages and benefits		188,529			391,418			-			188,529			391,418
Interest expense and bank charges		15,943			100,005			348,839			364,782			100,005
Depreciation and amortization		241,589			242,181			-			241,589			242,181
Fair value loss on crypto assets		-			-			16,882,557			16,882,557			-
Staking income		-			-			(221,718	)		(221,718	)		-
Share-based compensation		142,000			-			-			142,000			-
Government incentive		(27,397	)		(21,301	)		-			(27,397	)		(21,301	)
Total expenses		1,514,268			1,342,257			17,009,678			18,523,946			1,342,257
Loss from operations		(806,926	)		(598,948	)		(17,009,678	)		(17,816,604	)		(598,948	)
Foreign exchange (loss) gain		(188,189	)		(969	)					(188,189	)		(969	)
Interest income		-			-			214,334			214,334			-
Financing cost - warrants		-			-			(1,325,558	)		(1,325,558	)		-
Financing cost - Equity line of credit		-			-			(1,500,000	)		(1,500,000	)		-
Gain (loss) on change in fair value of derivative liability		-			-			15,653			15,653			-
Gain (loss) on change in fair value of warrant liability		422,689			4,468			681,887			1,104,576			4,468
Loss before income tax		(572,426	)		(595,449	)		(18,923,362	)		(19,495,788	)		(595,449	)
Income taxes (recovery) expense		-			-			-			-			-
Net loss		(572,426	)		(595,449	)		(18,923,362	)		(19,495,788	)		(595,449	)

Comparative information for the Crypto Asset Operations segment is not presented for the prior period, as the Company had no crypto-related activities or reportable amounts prior to the current fiscal year.

Segment assets


	For the period ended
	February 28, 2026		August 31, 2025
	$		$
Mortgage operations		15,469,096		5,417,221
Crypto assets		37,896,230		-
Total assets		48,872,601		5,417,221
Total segment assets		48,872,601		5,417,221

17. Loan from directors

Company entered into unsecured loan agreements with its directors and shareholders, for total proceeds of $657,690 loans bear interest at 12 percent per annum, are non-compounding, and are repayable after filling of S1 registration statement filling in December 2025. The loans are unsecured and may be repaid at any time without penalty.

As of February 28, 2026, loan is fully repaid.

18. Derivative Liability

During the six months ended February 28, 2026, the Company entered into over-the-counter (“OTC”) put option transactions with FalconX Charlie, Inc. (the “Counterparty”) in connection with its digital asset activities.

Under these arrangements, the Company sold put options referencing digital assets, which provide the counterparty with the right, but not the obligation, to require the Company to purchase the underlying asset at a specified strike price upon settlement.

As of February 28, 2026, the fair value of the derivative liability was $18,730, and the Company recognized a gain of $15,653 during the period, presented within change in fair value of derivative liability in the condensed interim consolidated statements of operations and comprehensive loss.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

1719. ~~Risk~~Equity ~~management~~Line ~~arising~~of ~~from~~Credit ~~financial~~(ELOC) ~~instruments~~Arrangement

During the period, the Company entered into an equity line of credit (“ELOC”) arrangement with White Lion Capital, LLC (“White Lion”), which provides the Company with the ability to issue common shares to White Lion, at the Company’s discretion, up to an aggregate commitment amount of $250 million, subject to the terms and conditions of the agreement.

In connection with the execution of the ELOC arrangement, the Company incurred a commitment fee of $1,500,000 (the “Commitment Fee”). The Commitment Fee represents a non-recurring financing cost associated with securing access to the facility.

The Commitment Fee has been recognized as a financing expense within the condensed interim consolidated statements of operations and comprehensive loss for the period ended February 28, 2026.

Under the terms of the ELOC arrangement, the Company may, from time to time, issue purchase notices to White Lion requiring the purchase of common shares at a price based on a discount to the prevailing market price, as defined in the agreement. The timing and amount of any such issuances are at the Company’s discretion, subject to certain contractual limitations.

20. Risk management arising from financial instruments

a)	Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company’s primary exposure to credit risk arises from cash balances held with financial institutions and trade receivables, which consist almost entirely of subscription fees billed to mortgage agents and brokerages.

The Company manages this risk by holding cash only with major Canadian financial institutions and by monitoring the creditworthiness, payment history, and aging profile of all subscription receivables. Trade receivables are short-term in nature and generally collected within 30 to 60 days. The Company considers receivables past due when they exceed 60 days outstanding, and impaired when they exceed 90 days with no reasonable expectation of recovery.

In accordance with ASC 326 – ~~Current~~ Expected Credit Losses (“~~CECL~~ECL”), the Company applies a lifetime expected credit loss model to trade receivables. Expected credit losses are estimated using a combination of historical loss rates, aging analysis, forward-looking information, and specific identification of high-risk accounts. Given the Company’s business model and the nature of subscription-based fees, historical credit losses have been limited~~; however, the Company recognized a material ECL provision and related write-offs during fiscal 2025, reflecting an increase in past-due accounts and a more conservative application of the CECL model~~.

~~Accounts Receivable Aging~~23

AsPineapple ofFinancial ~~each reporting date, the Company monitors the aging of trade receivables as follows:~~Inc.

●Notes to ~~Current~~the ~~(0–60~~Condensed ~~days)~~Interim ●Consolidated ~~Past~~Financial ~~Due~~Statements ~~(61–90~~- ~~days) ● Impaired (>90 days)~~Unaudited

~~November~~For 30period ended February 28, ~~2025~~2026

~~Schedule~~(Expressed ofin ~~Accounts~~US ~~receivable Aging~~Dollars)

	0-30 days		30-60 days		60-90 days		90 plus days			Total
Receivables $		49,741		23,233		18,193		59,719			150,886
Less: Expected credit loss		-		-		-		(7,154	)		(7,154	)
Total		49,741		23,233		18,193		52,565			143,732

20. Risk management arising from financial instruments (continued from previous page)

February 28, 2026

Schedule of accounts receivable aging

	0-30 days		30-60 days		60-90 days		90 plus days			Total
		$		$		$		$			$
Receivables		31,349		20,675		21,474		157,024			230,523
Other receivables		1,087		-		-		-			1,087
Less: Expected credit loss		-		-		-		(18,050	)		(18,050	)
Total		32,436		20,675		21,474		138,974			213,560

August 31, 2025

	0-30 days		30-60 days		60-90 days		90 plus days			Total
Receivables $		31,400		7,270		35,503		64,163			138,336
		$		$		$		$			$
Receivables		31,400		7,270		35,503		64,163			138,336
Other receivables		2,411		-		-		-			2,411
Less: Expected credit loss		-		-		-		(48,524	)		(48,524	)
Total		33,811		7,270		35,503		15,639			92,223

The maximum exposure to credit risk as of ~~August~~February 3128, ~~2025~~2026 is the carrying amount of cash and trade receivables on the consolidated balance sheet. Despite the increase in ECL during the year, management believes overall credit risk remains moderate and manageable, given the Company’s diversified customer base and the short-term nature of its receivables.

The following table provides expected credit loss during the year:

Schedule of credit loss

	Year ended
	November 30, 2025		August 31, 2025
	$		$
Opening balance		48,524		-
Increased during the year		7,154		48,524
Closing balance at year end		55,678		48,524

b)	Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company does not have any variable interest-bearing debt.

c)	Liquidity risk

Liquidity risk is the risk that the Company may be unable to meet its financial obligations as they become due. The Company manages this risk by monitoring actual and forecasted cash flows on an ongoing basis and assessing available sources of financing, as further described in ~~the Going Concern discussion in~~ Note 1.

As at ~~November~~February 3028, ~~2025~~2026, the Company’s contractual payment obligations are as follows:

Fiscal Year	2026		2027		2028		2029		2030
	$		$		$		$		$
Lease payments		~~140~~89,~~288~~261		~~175~~178,~~756~~521		~~186~~189,~~840~~779		~~194~~197,~~840~~820		8182,~~149~~425
Accounts payable		2895,~~001,934~~280		-		-		-		-
Loan from directors		629,728		-		-		-		-
Derivative liability		18,730
Loan payable		11,983,087		-		-		-		-
Interest payable		134,837		-		-		-		-
Warrant liability		512,725		-		-		-		-
Loan payable		18,972,000		-		-		-		-
Total		1520,~~267~~110,~~762~~108		~~175~~178,~~756~~521		~~186~~189,~~840~~779		~~194~~197,~~840~~820		8182,~~149~~425

Management believes that these obligations can be met through existing working-capital resources, expected operating cash flows, and planned financing initiatives.

1724

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For period ended ~~November~~February 3028, ~~2025~~2026

(Expressed in US Dollars)

1720. Risk management arising from financial instruments (Continued)

d)	Management of capital

The Company’s objective of managing capital, comprising of shareholders’ equity, is to ensure its continued ability to operate ~~as a going concern~~. The Company manages its capital structure and makes changes to it based on economic conditions.

Management and the Board of Directors review the Company’s capital management approach on an ongoing basis and believe this approach, given the relative size of the Company, is reasonable. The Company is not subject to externally imposed capital requirements. The Company’s capital management objectives, policies and processes have remained unchanged during the ~~three~~six months ended ~~November~~February 3028, ~~2025~~2026.

e)	Foreign currency risk

The Company’s operations and revenues are primarily denominated in Canadian dollars (“CAD”), which is also the functional currency of all of its subsidiaries. Accordingly, day-to-day operating exposure to foreign currencies is limited. However, the Company does incur foreign currency risk from certain USD-denominated transactions, including balances held in USD bank accounts and select vendor payments made in USD. These items can give rise to realized and unrealized foreign exchange gains or losses, which are recorded in the ~~consolidated~~condensed interim consolidated statements of operations and comprehensive loss.

In addition, the Company is required to translate its CAD-denominated financial statements into U.S. dollars (“USD”) for SEC reporting. This translation process may result in period-to-period fluctuations in reported assets, liabilities, revenues, and expenses due to changes in the CAD-USD exchange rate. These translation adjustments do not affect the Company’s underlying cash flows or economic performance.

Given the Company’s limited operating exposure to foreign currencies, management does not currently utilize foreign exchange derivatives to manage this risk.

~~18. Subsequent events~~25

~~Subsequent~~Item ~~to November 30, 2025, the Company completed certain material transactions~~2. Management’s ~~has~~Discussion ~~evaluated~~and ~~these~~Analysis ~~events~~of inFinancial ~~accordance~~Condition ~~with ASC 855, Subsequent Events,~~ and ~~determined~~Results ~~that they represent non-recognized subsequent events that require disclosure but do not require adjustment to the accompanying condensed interim consolidated financial statements as~~ of ~~and for the period ended November 30, 2025.~~Operations

~~Equity~~MANAGEMENT’S ~~Financing~~DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS.

OnPlease ~~January~~read 4,the ~~2026,~~following ~~the~~management’s ~~Company~~discussion ~~completed~~and ~~the~~analysis ~~closing~~of our financial condition and results of ~~its~~operations, ~~previously~~along ~~announced~~with ~~$100~~our ~~million~~consolidated financial ~~equity~~statements ~~financing~~and the related notes and other information included in ~~connection~~this Annual Report on Form 10-Q. It is important to note that this discussion and analysis contain forward-looking statements with ~~the~~certain ~~Injective~~risks and uncertainties. These risks and uncertainties ~~Digital~~could ~~Asset~~cause ~~Treasury~~our ~~Initiative~~results to differ materially from anticipated in these forward-looking statements. ~~Upon~~You ~~satisfaction~~can offind ~~the~~more ~~escrow~~information ~~release~~about these ~~conditions,~~risks and uncertainties under the ~~Company~~heading ~~received~~“Special ~~approximately~~Note ~~$19.0~~Regarding ~~million~~Forward-Looking Statements” in Part I and elsewhere in ~~cash~~this Form 10- Q.

~~Debt~~Special ~~Repayment~~Note ~~and~~Regarding ~~Modification~~Forward-Looking Statements

InThis ~~connection~~Form ~~with~~10-Q includes forward-looking statements that entail potential risks and uncertainties. These statements are usually identified by the ~~equity~~use ~~financing~~of specific terminology such as “anticipate,” ~~the~~“believe,” ~~Company~~“could,” ~~repaid~~“estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and other comparable terminology. All the ~~FalconX~~statements in ~~loan~~this ~~subsequent~~Form 10-Q that are not about historical facts, including those related to our future operations, financial position, Revenue, projected costs, strategy, plans, management objectives, and expected market growth, are forward-looking. While reading this Form 10-Q, you should know that these statements do not guarantee our performance or results. They include known and unknown risks, uncertainties, and assumptions, as mentioned under the ~~balance~~“Risk Factors” section in this Form 10-~~sheet~~Q. ~~date~~We believe that these forward- looking statements are based on reasonable assumptions. InStill, ~~addition~~you must be aware that many factors, including those mentioned under the ~~Company~~“Risk Factors” section in this Form 10-Q, could affect our financial results or operations and ~~FalconX~~cause ~~agreed~~actual results to adiffer ~~one~~from those stated in the forward-~~month~~looking ~~extension~~statements. These statements were made as of the ~~repayment~~date ~~period~~of ~~prior~~this Form 10-Q, and we are not obligated to ~~settlement.~~update or ~~Refer~~revise any forward-looking statements made here to ~~Note~~reflect 12any ~~for~~change ~~additional~~in ~~information~~our ~~regarding~~expectations or any change in events, conditions, or circumstances on which these statements are based. All written or oral forward-looking statements made by us or on our behalf are qualified by the ~~FalconX~~cautionary ~~loan~~statements mentioned in this Form 10-Q.

18Objective

~~Item~~In this 2.section, ~~Management~~we provide an analysis of the Company’s ~~Discussion~~financial condition, cash flows, and ~~Analysis~~results of ~~Financial~~operations ~~Condition~~from management’s perspective. We recommend you read this with the consolidated financial statements and ~~Results~~notes in Part II, Item 8 of ~~Operations~~this Annual Report on Form 10Q.

~~MANAGEMENT’S~~Executive ~~DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS.~~Summary

~~Please~~The ~~read~~Company ~~the~~is ~~following~~a ~~management’s~~technology-enabled ~~discussion~~mortgage ~~and~~platform ~~analysis~~operating ofin ~~our financial condition and results of operations~~Canada, ~~along~~ with ~~our~~an ~~consolidated financial~~expanding ~~statements~~focus ~~and the related notes and other information included in this Annual Report~~ on ~~Form 10~~data-Q.driven Itfinancial isservices ~~important to note that this discussion~~ and ~~analysis contain forward-looking statements with certain risks and uncertainties. These risks and uncertainties~~ ~~could~~capital ~~cause~~allocation ~~our results to differ materially from anticipated in these forward-looking statements~~strategies. ~~You can find more information about these risks and uncertainties under the heading “Special Note Regarding Forward-Looking Statements” in Part I and elsewhere in this Form 10- Q.~~

~~Special~~During ~~Note~~the ~~Regarding~~period, ~~Forward-Looking~~the ~~Statements~~Company began executing a strategic transition from a primarily transactional mortgage brokerage model toward an integrated platform consisting of:

~~This Form~~● ~~10-Q~~A ~~includes~~core ~~forward-looking~~mortgage ~~statements~~origination ~~that entail potential risks~~ and ~~uncertainties.~~servicing ~~These~~platform ~~statements~~● are usually identified by the use of specific terminology such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and other comparable terminology. All the statements in this Form 10Data-Qdriven ~~that are not about historical facts, including those related to our future operations, financial position, Revenue, projected costs, strategy, plans, management objectives,~~ and ~~expected market growth, are forward~~subscription-looking. While reading this Form 10-Q, you should know that these statements do not guarantee our performance or results. They include known and unknown risks, uncertainties, and assumptions, as mentioned under the “Risk Factors” section in this Form 10-Q. We believe that these forward- looking statements are based onrevenue ~~reasonable~~streams ~~assumptions.~~● ~~Still,~~A ~~you~~disciplined ~~must~~digital beasset ~~aware~~treasury ~~that~~strategy ~~many~~designed ~~factors, including those mentioned under the “Risk Factors” section in this Form 10-Q, could affect our financial results or operations and cause actual results~~ to ~~differ~~enhance ~~from~~capital ~~those stated~~efficiency ~~in the forward-looking statements. These statements were made as of the date of this Form 10-Q,~~ and wegenerate are not obligated to update or revise any forward-looking statements made here to reflect any change in our expectations or any change in events, conditions, or circumstances on which these statements are based. All written or oral forward-looking statements made by us or on our behalf are qualified by the cautionary statements mentioned in this Form 10-Q.yield

~~Objective~~This transition reflects management’s focus on improving earnings quality, increasing recurring revenue, and driving operating leverage over time. While reported financial results for the period were significantly impacted by non-cash fair value adjustments related to crypto asset holdings, the Company’s underlying operating performance remained stable, supported by continued revenue generation, cost optimization initiatives, and early contributions from new strategic initiatives.

InManagement ~~this~~believes ~~section, we provide an analysis of~~ the Company’s ~~financial~~has ~~condition,~~now ~~cash~~completed ~~flows,~~the ~~and~~majority ~~results~~ of ~~operations~~its ~~from~~balance ~~management’s perspective.~~sheet Werepositioning ~~recommend~~and ~~you~~cost ~~read~~restructuring ~~this~~initiatives ~~with~~and ~~the~~is ~~consolidated~~entering a ~~financial~~phase ~~statements~~of ~~and~~execution ~~notes~~focused inon ~~Part~~operating IIleverage, ~~Item~~earnings 8quality, ofand ~~this~~scalable ~~Annual Report on Form 10Q~~growth.

~~Executive Summary~~26

WeBusiness ~~are~~Model a fintech company based in Ontario, Canada. Our tech-driven businesses are focused on mortgages and insurance. Our goal is to provide clients with an industry-leading experience through our trusted digital solutions that are simple and fast.Transformation

19The Company is currently in a transition phase, moving from a period of capital formation and strategic investment toward one of execution, operating leverage, and performance delivery.

~~Recent~~Historically, ~~Developments~~the Company operated primarily as a transactional mortgage brokerage platform, with revenue largely dependent on origination volumes. As part of its strategic evolution, the Company is building an integrated operating model across three core pillars:

~~Business Trends~~1. Core Mortgage Platform – focused on agent productivity, volume growth, and cost efficiency 2. Data & Analytics – focused on monetizing mortgage data through structured, recurring revenue products 3. Digital Asset Treasury – focused on capital efficiency, yield generation, and treasury optimization

~~During~~Management ~~fiscal~~believes ~~2025,~~this ~~the~~integrated ~~Canadian~~model ~~mortgage~~will market continued to adjust to changes in monetary policy following the Bank of Canada’s multi-stage easing cycle that commenced in mid-2024. Through September 2025, the Bank of Canada reduced its benchmark overnight interest rate by an aggregate of approximately 50 basis points. These reductions contributed to improved borrowing conditions and greater rate stability; however, overall mortgage origination volumes remained below pre-2022 levels, reflecting ongoing affordability pressures, constrained housing supply, and continued underwriting discipline among lenders.support:

~~Within this~~● ~~operating~~Higher-margin ~~environment,~~revenue ~~mortgage~~mix ~~renewal~~● ~~and~~Increased ~~refinance~~recurring ~~transactions~~and ~~represented an increasing proportion of total industry activity, while purchase~~subscription-~~related~~based ~~originations~~revenue ~~expanded~~● atImproved aoperating ~~more~~leverage ~~gradual pace. Notwithstanding these market conditions, Pineapple Financial Inc. maintained stable operations~~ and ~~continued~~earnings todurability ~~broaden~~● ~~its~~Enhanced ~~presence~~capital ~~across key Canadian markets.~~efficiency

~~The~~Recent Company also continued to invest in and enhance its proprietary Pineapple Plus technology platform. During the period, the Company advanced workflow automation capabilities, expanded customer relationship management functionality, and further integrated insurance and ancillary financial-product offerings. These initiatives supported improved operational efficiency, increased productivity per agent, and sustained client engagement despite the relatively subdued housing market. In parallel, continued investment in data-driven marketing initiatives and digital lead-generation tools contributed to the stability of the Company’s fee-based revenue streams.Developments

InBusiness addition to its core mortgage-brokerage operations, the Company has initiated a strategic investment program focused on digital assets. During the quarter, the Company invested approximately $11.8 million in Injective digital assets, reflecting management’s broader treasury and capital-allocation strategy. During the quarter, the Company announced its intention to pursue up to $100 million in aggregate investment in Injective digital assets, subject to market conditions, regulatory considerations, availability of capital, and final execution of related investment arrangements. Management believes this initiative is complementary to the Company’s long-term vision of integrating innovative financial technologies into its broader fintech ecosystem; however, the timing, structure, and ultimate scale of future investments remain subject to change.Trends

~~Early~~During ~~indicators~~the insix ~~the~~months ~~fourth~~ended ~~quarter~~February ~~reflected~~28, ~~increased~~2026, the Canadian mortgage ~~application~~market ~~volumes~~continued ~~and~~to ~~lead-generation~~adjust ~~activity,~~to ~~primarily~~changes ~~driven~~in bymonetary ~~renewal~~policy following the ~~and~~Bank ~~refinance~~of ~~demand~~Canada’s easing cycle that commenced in mid-2024. ~~Management~~Through ~~believes~~the ~~these~~current ~~trends~~period, ~~together~~the ~~with~~Bank ~~ongoing~~of ~~platform~~Canada ~~enhancements~~reduced ~~and~~its ~~disciplined~~benchmark overnight ~~capital~~interest ~~deployment, position~~rate. ~~the~~While ~~Company~~these reductions contributed to ~~participate~~improved inborrowing aconditions ~~gradual~~and ~~recovery~~greater inrate stability, overall mortgage origination ~~activity~~volumes asremained ~~interest~~below pre-~~rate~~2022 ~~conditions~~levels, ~~stabilize~~reflecting ~~and~~ongoing ~~borrower~~affordability ~~confidence improves~~constraints, ~~heading~~limited ~~into~~housing ~~fiscal~~supply, ~~2026~~and continued underwriting discipline among lenders.

~~Results~~Within this operating environment, mortgage renewal and refinance transactions represented a greater proportion of ~~Operations~~total industry activity, while purchase-related originations continued to recover at a more gradual pace. The Company’s operating performance remained stable during the period, supported by its diversified agent network and continued presence across key Canadian markets.

~~Three~~The ~~Months~~Company ~~Ended~~continued ~~November~~to 30invest in and enhance its proprietary Pineapple Plus technology platform. During the period, ~~2025~~the ~~Compared~~Company advanced workflow automation capabilities, expanded customer relationship management functionality, and further integrated insurance and ancillary financial product offerings. These initiatives contributed to ~~November~~operational 30efficiencies, ~~2024~~improved agent productivity, and sustained client engagement despite ongoing market challenges. In addition, continued investment in digital marketing and lead-generation tools supported the stability of the Company’s fee-based revenue streams.

~~For~~Subsequent to the ~~three months ended November 30~~quarter, ~~2025,~~early ~~the~~indicators ~~Company~~suggest ~~reported~~increased amortgage ~~net~~application ~~loss~~volumes ofand ~~approximately~~lead-generation ~~$6.4 million~~activity, ~~compared~~primarily todriven aby ~~net~~renewal and ~~loss~~refinance ~~of approximately $0~~demand.7 ~~million~~Management ~~for~~believes ~~the~~that ~~same~~these ~~period~~trends, intogether ~~the~~with ~~prior~~ongoing ~~year.~~platform ~~The~~enhancements ~~increase~~and indisciplined ~~net~~capital ~~loss~~allocation, may ~~was~~support ~~driven~~a ~~primarily~~gradual byrecovery ain ~~non-cash~~mortgage ~~loss~~activity ~~related~~as tointerest ~~changes in~~rate ~~the~~conditions ~~fair~~stabilize. ~~value~~However, of the ~~Company’s~~extent ~~Injective~~and ~~digital~~timing ~~asset~~of ~~holdings,~~such ~~partially~~recovery remain ~~offset~~subject byto ~~reductions~~macroeconomic inconditions, ~~operating~~including ~~expenses~~interest rate dynamics and ~~continued cost-control~~housing ~~initiatives~~market activity.

~~Revenue~~27

~~Revenue~~In ~~for~~addition ~~the~~to ~~three~~its ~~months~~core ~~ended~~mortgage ~~November~~brokerage 30operations, ~~2025 was approximately $0.7 million, compared to $0.8 million in~~ the ~~comparable~~Company ~~prior-year~~has ~~period, representing~~implemented a ~~decrease~~structured ofdigital ~~approximately~~asset ~~$44~~treasury ~~thousand, or 5~~strategy.~~8%.~~ ~~The~~During the ~~decline~~six ~~reflects~~months ~~continued~~ended ~~softness~~February in28, ~~mortgage~~2026, ~~origination~~the ~~activity and~~Company ~~changes~~deployed in$45.4 ~~revenue~~million ~~mix~~into ~~during~~digital ~~the quarter~~assets, ~~partially~~primarily ~~offset~~allocated byto ~~stable~~Injective ~~subscription and underwriting-related revenue streams~~(INJ).

20This program is designed to enhance capital efficiency through staking yield generation, disciplined capital allocation, and long-term asset appreciation. The Company’s approach emphasizes governance, liquidity management, and risk controls, and is not intended to represent speculative trading activity.

~~Operating~~Due ~~Expenses~~to applicable accounting standards, these holdings are subject to fair value remeasurement, which may introduce significant non-cash volatility in reported earnings.

~~Total~~RESULTS ~~operating~~OF 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. This increase was primarily attributable to a $6.1 million non-cash loss recognized from changes in the fair value of Injective digital assets during the quarter. Excluding this fair value adjustment, operating expenses declined year over year, reflecting management’s continued focus on cost discipline and operational efficiency.OPERATIONS

~~Selling,~~Three ~~general~~Months ~~and~~Ended ~~administrative~~February ~~expenses decreased by approximately 5.4%~~28, ~~primarily~~2026 ~~due~~Compared to ~~lower~~February ~~professional fees and general overhead. Advertising and marketing expenses declined by approximately 54%~~28, reflecting reduced discretionary spending and a greater emphasis on data-driven and digital marketing initiatives. Salaries, wages, and benefits decreased by approximately 63%, primarily as a result of workforce optimization measures implemented in prior periods.2025

~~These~~Net reductions were partially offset by an increase in interest expense and bank charges of approximately 52%, reflecting higher borrowings and financing activity during the quarter, as well as a modest increase in depreciation expense associated with technology and platform investments.Loss

~~Operating~~For the ~~Expenses~~three ~~and~~months ~~Fair~~ended ~~Value~~February ~~Adjustments~~28, 2026, the Company reported a net loss of $19.5 million, compared to a net loss of $0.6 million for the same period in the prior year.

~~During~~The ~~the~~increase ~~three months ended November 30, 2025, operating expenses included a $6.1 million non-cash loss resulting from changes~~ in ~~the~~net ~~fair value of the Company’s Injective digital asset holdings, which is presented within operating expenses in the consolidated statements of operations. This~~ loss ~~reflects~~was ~~market-~~primarily driven ~~valuation movements of the digital assets during the period and does not relate to the Company’s core mortgage brokerage or technology operations.~~by:

~~In addition~~● A $16.9 million non-cash, ~~the~~market-driven ~~Company~~fair ~~recognized~~value ~~gains~~remeasurement of digital asset holdings ● $3.2 million of one-time, non-recurring financing-related tocosts ~~changes~~associated inwith the ~~fair~~Company’s ~~value~~PIPE transaction, including $1.3 million of warrant-related ~~liabilities~~expenses and ~~foreign~~$1.5 ~~exchange~~million ~~movements,~~of ~~which are~~ELOC-related ~~presented~~charges ~~outside~~● $0.36 million of ~~operating~~incremental ~~income~~interest ~~and~~expense ~~partially~~associated ~~offset~~with ~~the~~new ~~loss~~borrowings ~~for~~related to the ~~period.~~Company’s digital asset treasury strategy

~~Operating~~These ~~Loss~~factors were partially offset by growth in revenue and ~~Net~~continued ~~Loss~~cost management. Reported GAAP results for the period were significantly impacted by non-cash fair value adjustments related to digital asset holdings. Management believes these adjustments introduce volatility that is not reflective of the Company’s core operating performance or underlying cash flow generation. Of note, the Company’s reported net loss was significantly impacted by non-cash, market-driven fair value remeasurement of digital asset holdings, which does not reflect underlying operating performance or cash flow generation. Excluding these non-cash adjustments and financing-related costs, the Company’s core operating results were materially improved relative to the prior year period, reflecting revenue growth and the impact of structural cost reduction initiatives implemented during the period.

As a result of the foregoing, the Company reported a loss from operations of approximately $6.5 million for the three months ended November 30, 2025, compared to a loss from operations of approximately $0.7 million in the comparable prior-year period. Management believes that, excluding the impact of non-cash fair value adjustments related to digital assets, the underlying operating performance of the Company during the quarter benefited from cost reductions, improved operational efficiency, and continued stabilization of core mortgage-related activities.Revenue

	Three months period Ended November 30,
	2025		2024		2023
Mortgage volume		457,087,448		424,076,207		381,777,717
Gross billing		4,084,709		4,405,908		3,873,320
Commission expense		3,721,246		3,991,626		3,570,110
Net sales revenue		363,463		414,282		303,210
Underwriting revenue		27,473		27,343		42,106
Subscription revenue		207,746		182,180		183,245
Other income		123,045		142,269		70,758

Revenue for the three months ended February 28, 2026 was $0.9 million, compared to $0.7 million in the comparable prior-year period, representing an increase of $0.2 million, or 25%.

~~Our~~The ~~sources~~increase ofin revenue ~~include~~was ~~commissions~~driven ~~from lenders, underwriting revenue, membership fees from mortgage agents, and other income.~~by:

21● Improved mortgage origination volumes ● Continued contribution from subscription, insurance, and underwriting revenue streams ● Incremental contribution from digital asset activities, including staking income

~~Gross~~Operating ~~Billing:~~Expenses

~~The~~Total ~~Company~~operating ~~earns~~expenses ~~revenue~~for ~~from its mortgage brokerage operations based on commissions received from financial institutions with whom it has contractual arrangements. Gross billing represents~~ the ~~total~~three ~~commission~~months ~~earned~~ended ~~from~~February ~~lending~~28, ~~institutions~~2026 onwere ~~funded mortgage transactions~~$18. As7 ~~the Company engages licensed mortgage agents and brokers who are responsible for originating and closing mortgage transactions~~million, ~~a significant~~compared ~~portion of the gross billing is paid out as commissions and referral fees~~ to ~~those agents~~$1.3 ~~Accordingly,~~million ~~the~~in ~~Company presents revenue on a net basis, calculated as gross billing less commissions and payouts to mortgage agents, as~~ the ~~Company~~same ~~acts~~period asof ~~an agent~~the inprior ~~these arrangements~~year.

~~Under~~The ~~ASC~~increase ~~606,~~was ~~Revenue~~primarily ~~from~~attributable ~~Contracts with Customers, the Company evaluates each contract~~ to identify performance obligations, determine the transaction price, allocate the transaction price to the performance obligations, and recognize revenue when control of the promised service is transferred to the customer.:

~~For each~~● ~~mortgage~~$16.9 million non-cash, market-driven fair value remeasurement of digital asset holdings $2.8 million of one-time, non-recurring financing-related costs related to the Company’s recent PIPE transaction, ~~revenue~~including is$1.3 ~~recognized~~million ~~when:~~of warrant-related expenses and $1.5 million of ELOC-related charges ● $0.3 million of interest expense associated with new borrowings related to the Company’s digital asset treasury strategy ● One-time advertising and marketing expenses pertaining to the financing

● A binding contract exists between the borrower, the mortgage agent, and the lending institution; ● The Company provides access to, and support through, its technology platform to facilitate the mortgage transaction; ● The mortgage loan is funded by the lender; and ● The Company’s commission from the lender becomes fixed and collectible.28

~~The~~Excluding ~~Company’s~~digital ~~performance~~asset ~~obligation~~remeasurement ~~is satisfied at a point in time, when the mortgage is funded~~ and ~~all platform~~financing-related ~~services for~~costs, ~~that~~operating ~~transaction~~expenses ~~have~~decreased ~~been~~modestly, ~~completed. Revenue is measured as the net amount retained by the Company after remitting the applicable commission and referral fees to mortgage agents and sub-brokers.~~reflecting:

~~This net~~● ~~revenue~~Relatively ~~reflects~~stable general and administrative expenses ● Lower personnel-related costs compared to the ~~Company’s~~prior ~~role~~year asdue anto ~~intermediary~~cost ~~providing~~optimization ~~technology~~measures ~~infrastructure~~● A reduction in in operating expenses driven by structural cost optimization initiatives, ~~compliance~~including ~~oversight~~workforce realignment, reduced reliance on third-party software and ~~workflow support~~professional services, ~~rather~~and ~~than~~the ~~acting~~implementation asof ~~the~~a ~~primary~~leaner, ~~obligor~~technology-enabled inoperating model ● These reductions reflect the ~~mortgage~~Company’s ~~funding~~broader ~~transaction.~~operational restructuring initiative, which has materially reduced its fixed cost base and lowered its operating cash burn

~~Subscription~~Operating ~~Revenue:~~Expenses and Fair Value Adjustments

~~Users~~During ~~access~~the ~~and use our technology platform~~quarter, ~~Pineapple~~operating ~~Plus,~~expenses ~~for~~included a ~~flat monthly service fee of~~ $~~145~~16.009 Inmillion ~~exchange for this fee~~non-cash, ~~users of Pineapple Plus have access to a network management system that allows them to perform back~~market-driven ~~office~~fair ~~procedures~~value ~~more~~remeasurement ~~efficiently~~of ~~and effectively. This platform will enable them to process~~ the ~~deal~~Company’s ~~described above prepare, and complete the package for submission to be funded by the~~digital ~~financial~~asset ~~institution. We have a strong user base, which has experienced significant growth since our inception. Revenue is recognized at the beginning of the month when a user is invoiced and pays the fee.~~holdings

~~Underwriting~~This ~~Fee:~~loss was driven by market-driven valuation changes in Injective tokens and is not indicative of the Company’s core mortgage and platform operations.

~~Users can optionally use our expert risk pre-assessment service~~Additionally, ~~which assists them in pre-underwriting their loans before submission to a~~ ~~lender for approval and funding. This service significantly reduces~~ the ~~time for the lender partners’ assessment of the deal. For mortgages of $179,575 and less, we charge an underwriting fee of $251; for mortgages greater than $179,575, the~~ Company charges an underwriting fee of $359. The Company has undertaken a special program to educate and inform users of this service in further detail. Approximately 40% of the deals originated by users are using this service. This program is intended to further increase the number of deals and improve the services offered.recognized:

~~Insurance commission~~● ~~Revenue:~~A gain on the change in fair value of warrant liabilities ● Interest income and derivative gains

~~The~~These ~~Company~~items earns insurance commission revenue through Pineapple Insurance, which acts as a broker for third-party insurance carriers. When customers purchase insurance policies through our platform, the Company receives commissions from the insurance providers based on premiums written. The Company acts as a principal in these transactions because it is responsible for sourcing customers, facilitating the placement of insurance products, and managing the full service process. Commission revenue is recognized at the point in time when the underlying insurance policy becomes effective and our performance obligations are ~~satisfied. Insurance commission revenue is~~ presented ~~net~~below ofoperating ~~referral fees,~~income ~~agent commissions,~~ and ~~other~~partially ~~consideration~~offset ~~payable~~overall ~~to mortgage agents or third-party partners, as these amounts represent direct transaction-related costs~~losses. ~~Renewal commissions are recognized only when they become fixed and determinable based on confirmation from the insurance carriers.~~

~~Other~~Operating ~~Income:~~Loss and Net Loss

~~Other~~As ~~income~~a ~~includes~~result of the foregoing, the Company reported a ~~technology~~loss ~~setup~~from ~~fee~~operations ~~and~~of ~~sponsorship~~$17.8 ~~fee~~million, compared to $0.6 million in the comparable prior-year period.

22Management believes that, excluding the impact of:

~~Components~~ ● Non-cash, market-driven fair value remeasurement of ~~operating~~digital ~~expenses~~asset holdings, and ● Financing-related costs,

~~Our operating expenses, as presented in~~ the ~~statement of operations data, include salaries, commissions and team member benefits, general~~ ~~and~~Company’s ~~administrative~~underlying ~~expenses,~~operating ~~marketing~~performance ~~and~~remained ~~advertising expenses~~stable, ~~and~~supported ~~others.~~by:

~~Salaries and~~● ~~commissions~~Continued ~~and~~revenue ~~team~~growth ~~member~~● ~~benefits~~Ongoing cost management initiatives ● Strategic investment in platform and growth initiatives

~~All~~In ~~payroll~~addition, ~~expenses~~during ~~include~~the ~~our~~period ~~team~~and ~~members’~~subsequent ~~salaries,~~to ~~commissions~~quarter end, the Company implemented a comprehensive operational restructuring initiative designed to materially reduce its fixed cost base and ~~benefits~~improve operating leverage.

~~Selling~~To date, approximately ~~general~~$1.46 million of annualized cost savings have been implemented and ~~administrative~~are expected to be reflected in the Company’s run-rate by March 31, 2026, with additional savings currently being executed. In aggregate, these initiatives are expected to reduce annual operating expenses by more than $2.5 million.

~~Selling,~~The ~~general~~restructuring ~~and~~included ~~administrative~~a ~~expenses~~realignment ~~include~~toward ~~software~~a ~~subscriptions~~leaner, ~~license~~technology-enabled ~~fees~~operating model, including a significant reduction in headcount, as well as reductions across professional services, ~~marketing~~software, ~~expenses~~marketing, and other operating expenses.

~~Share-based~~A ~~compensation~~key component of this transformation has been the integration of artificial intelligence across core business functions, enabling the Company to automate processes historically supported by manual workflows, including agent onboarding, data processing, and customer engagement.

~~Share-based compensation comprises equity awards and is measured and expensed accordingly under Accounting Standards Codification (“ASC”) 718 Compensation—Stock Compensation.~~29

~~Comparison~~As a result of these initiatives, the ~~three~~Company ~~months~~has ~~ended~~structurally ~~November~~reduced ~~30,~~its ~~2025~~operating cost base while maintaining platform capabilities and scalability. ~~2024~~Management believes these changes represent a permanent reset of the Company’s expense structure and position the business to achieve improved operating leverage and enhanced earnings durability as revenue scales.

Three months ended	November 30, 2025 ($)			November 30, 2024 ($)			Increase/ (Decrease) ($)			Increase/ (Decrease) %
Revenue		721,727			766,074			(44,347	)		(5.79	)
Expenses
Selling, general and administrative		394,850			417,406			(22,556	)		(5.40	)
Advertising and Marketing		124,398			273,009			(148,611	)		(54.43	)
Salaries, wages and benefits		162,383			436,365			(273,982	)		(62.79	)
Interest expense and bank charges		265,236			174,505			90,731			51.99
Depreciation		222,800			185,523			37,277			20.09
Fair value loss on crypto assets		6,140,379			-			6,140,379			100.00
Government incentive		(26,973	)		(27,219	)		246			(0.90	)
Total expense		7,283,073			1,459,588			5,823,484			398.98
Loss from operations		(6,561,346	)		(693,513	)		(5,867,831	)		846.10
Foreign exchange gain (loss)		28,831			5,089			23,742			466.54
Gain(loss) on change in fair value of warrant liability		97,430			31,532			65,898			208.99
Net loss		(6,435,085	)		(656,894	)		(5,778,191	)		879.62

The three-month period reflects the Company’s current operating profile following recent financing and restructuring initiatives, while the six-month period reflects both pre- and post-transition performance.

~~Revenue~~Six Months Ended February 28, 2026 Compared to February 28, 2025

~~For~~The ~~the~~six-month ~~three~~results ~~months~~reflect ~~ended November 30, 2025,~~ the ~~Company~~impact ~~generated gross billings~~ of ~~approximately~~both ~~$4.1~~legacy ~~million,~~cost ~~compared~~structure toand ~~$4.4~~recent ~~million for~~strategic ~~the~~initiatives, ~~same~~including ~~period~~capital indeployment ~~the prior year. The modest decrease reflects changes in product mix~~ and ~~commission structures during the quarter,~~ ~~partially~~operational ~~offset by higher residential mortgage origination volumes~~restructuring.

~~Mortgage~~Net origination volume increased to approximately $457.1 million for the three months ended November 30, 2025, compared to $424.1 million in the comparable prior-year period, representing an increase of approximately 7.8%. This growth was primarily driven by higher renewal and refinance activity and improved agent productivity. During the quarter, mortgage market conditions continued to benefit from the Bank of Canada’s prior interest-rate reductions, which supported borrowing activity, although overall housing market conditions remained below pre-2022 levels.Loss

~~Net~~For ~~sales revenue for~~ the ~~three~~six months ended ~~November~~February 3028, ~~2025~~2026, ~~was~~the ~~approximately~~Company reported a net loss of $025.369 million, compared to a net loss of $01.413 million in the ~~same period~~ ~~of the~~ prior -year. ~~The decrease was primarily attributable to lower gross billings during the quarter, partially offset by increased mortgage volumes~~period.

~~Subscription~~The ~~revenue~~increase ~~increased to approximately $0.21 million for the three months ended November 30, 2025, compared to $0.18 million~~ in ~~the~~net ~~comparable prior-year~~loss ~~period.~~was ~~The~~primarily ~~increase~~driven ~~reflects continued adoption and usage of the Company’s Pineapple Plus technology platform~~ by ~~its agent network. Underwriting and other ancillary revenue remained relatively consistent year over year.~~:

~~Cost~~ ● A $23.0 million non-cash, market-driven fair value remeasurement of ~~Gross~~digital ~~Billings~~asset holdings ● Increased financing costs associated with capital-raising activities ● Higher interest expense due to new borrowings

Cost of gross billings, which consists primarily of commission expense, totaled approximately $3.7 million for the three months ended November 30, 2025, compared to $3.99 for the same period in the prior year. The decrease in commission expense was generally consistent with the decline in gross billings and reflects ongoing optimization of commission arrangements and agent mix.Revenue

~~The~~Revenue ~~Company~~for ~~continues~~the tosix ~~focus~~months onended ~~balancing~~February ~~transaction~~28, ~~volume~~2026 ~~growth~~was ~~with disciplined commission management~~$1.43 ~~Initiatives implemented during the quarter~~million, ~~including~~compared ~~enhanced~~to ~~workflow~~$1.51 ~~automation,~~million ~~centralized~~in ~~underwriting~~the ~~processes,~~comparable ~~and agent~~prior-~~performance~~year ~~analytics~~period, ~~are intended~~representing toan ~~support~~decrease ~~operating~~of ~~efficiency~~$0.08 ~~and~~million, ~~improve~~or ~~margin performance over time while maintaining competitive agent compensation structures~~5.3%.

23The increase was driven by:

~~Selling~~● Stabilization in mortgage market activity ● Growth in ancillary revenue streams, ~~General~~ including subscription, insurance, and ~~Administrative~~underwriting ~~Expenses.~~services ● Contribution from digital asset-related activities

~~The~~Operating ~~breakdown of selling, general and administrative expenses are as follows:~~Expenses

Three months ended	November 30, 2025 ($)		November 30, 2024 ($)		Increase/ (Decrease) ($)			Increase/ (Decrease) %
Software subscription		115,980		219,908		(103,928	)		(47.26	)
Office and general		36,178		45,571		(9,393	)		(20.61	)
Professional fee		60,465		29,275		31,190			106.54
Dues and subscription		68,964		31,600		37,364			118.24
Rent		50,797		31,610		19,187			60.70
Consulting fee		8,967		9,679		(712	)		(7.36	)
Travel		18,824		20,589		(1,765	)		(8.57	)
Donations		-		652		(652	)		(100.00	)
Lease expense		-		1,045		(1,045	)		(100.00	)
Insurance		34,675		27,477		7,198			26.20
		394,850		417,406		(22,556	)		(5.40	)

Total operating expenses for the six months ended February 28, 2026 were $25.8 million, compared to $2.8 million in the same period of the prior year.

~~Selling,~~The ~~General~~increase ~~and~~was ~~Administrative~~primarily ~~(“SG&A”)~~attributable ~~Expenses~~to:

~~Selling, general~~● ~~and administrative (“SG&A”) expenses for the three months ended November 30, 2025 were~~ $~~394,851,~~23.0 ~~compared~~million ~~to $417~~non-cash,~~406~~ ~~for~~market-driven ~~the~~fair ~~same~~value ~~period~~remeasurement ~~in the prior year, representing a decrease~~ of ~~$22,555,~~digital orasset ~~approximately~~holdings 5$1.~~4%.~~5 ~~The~~million ~~decrease~~financing ~~reflects~~costs ~~the Company’s~~related ~~continued~~to ~~focus~~ELOC onarrangements ~~cost~~● ~~discipline~~Warrant-related ~~and~~financing ~~operating~~costs ~~efficiency,~~● ~~partially~~Increased ~~offset~~interest ~~by higher professional and compliance-related expenditures during the quarter.~~expense

~~Software~~Excluding ~~Subscription~~these items, operating expenses increased moderately due to:

~~Software subscription~~● ~~expenses~~Continued ~~decreased~~investment ~~to $115,980 for the three months ended November 30, 2025, compared to $219,908~~ in ~~the~~marketing ~~comparable~~and ~~prior-year period,~~growth ~~representing~~initiatives a● ~~decrease~~Ongoing ~~of $103,928, or approximately 47.3%. The reduction primarily reflects continued optimization of the Company’s~~ technology ~~stack,~~platform ~~including~~development ~~the~~● ~~consolidation~~General ofinflationary ~~third-party~~cost ~~software tools and increased reliance on internally developed functionality within the Pineapple Plus platform.~~pressures

~~Office~~Operating Expenses and ~~General~~Fair Value Adjustments

~~Office~~During ~~and general expenses totaled $36,178 for~~ the ~~three~~six-month ~~months ended November 30~~period, ~~2025, compared to $45,571 in~~ the ~~same~~Company ~~period~~recognized ~~of the prior year, representing~~ a ~~decrease of~~ $~~9,392, or approximately 20~~23.~~6%.~~0 ~~The~~million ~~decrease~~non-cash, ~~reflects~~market-driven ~~lower~~fair ~~administrative~~value ~~overhead~~remeasurement ~~and~~of ~~continued~~digital ~~cost-containment measures~~asset ~~across general office operations.~~holdings

~~Professional Fees~~30

~~Professional~~This ~~fees~~loss ~~increased~~was todriven ~~$60,465~~by ~~for~~market ~~the~~volatility ~~three months ended November 30, 2025, compared to $29,275~~ in the ~~comparable~~price ~~prior-year period, representing an increase~~ of ~~$31,190,~~Injective ortokens ~~approximately 106.5%. The increase was primarily attributable to higher legal, accounting,~~ and ~~advisory~~does ~~costs incurred~~not ~~during~~represent ~~the~~cash ~~quarter~~outflows inor ~~connection~~core ~~with~~operating ~~regulatory compliance, reporting requirements, and transaction-related activities~~performance.

~~Dues~~In ~~and~~addition, ~~Subscriptionsz~~the Company recognized:

Dues and subscriptions increased to $68,964 for the three months ended November 30, 2025, compared to $31,600 in the prior-year period, representing an increase of $37,364, or approximately 118.2%. The increase primarily reflects higher exchange listing fees, regulatory compliance costs, and expanded use of data and industry-related subscriptions.

	●	A $1.2 million gain on remeasurement of warrant liabilities
	●	Interest income from financing arrangements

~~Rent~~Operating Loss and Net Loss

~~Rent~~As ~~expense~~a ~~increased~~result toof ~~$50,797 for~~ the ~~three months ended November 30~~foregoing, ~~2025, compared to $31,610 in~~ the ~~same~~Company ~~period~~reported ofa ~~the~~loss ~~prior~~from ~~year, representing~~operations ~~an increase~~ of $1924.4 million,~~187,~~ orcompared ~~approximately~~to 60$1.~~7%.~~3 ~~The~~million ~~increase reflects changes~~ in ~~leased facilities and space utilization during~~ the ~~quarter~~prior-year period.

~~Consulting~~Management ~~Fees~~believes that, excluding the impact of:

~~Consulting fees~~● ~~were~~Digital ~~$8,967~~asset ~~for~~fair ~~the~~value ~~three months ended November 30~~adjustments, ~~2025,~~and ~~compared~~● ~~to $9,679 in the comparable prior~~Financing-~~year~~related ~~period~~costs, ~~representing a decrease of $712, or approximately 7.4%, reflecting reduced reliance on external consultants as certain functions continued to be transitioned in-house.~~

~~Travel~~the Company’s core operating performance remained stable, supported by:

~~Travel expenses~~● ~~decreased~~Consistent torevenue ~~$18,824~~generation ~~for~~● ~~the~~Improved ~~three~~cost ~~months~~structure ~~ended~~relative ~~November 30, 2025, compared~~ to ~~$20,589~~historical inlevels ~~the~~● ~~prior-year~~Ongoing ~~period,~~operational ~~representing a decrease of $1,765, or approximately 8.6%, reflecting continued cost controls and a greater use of virtual engagement.~~efficiencies

~~Donations and~~Non-GAAP ~~Lease~~Financial ~~Expense~~Measures

~~Donations and~~The ~~lease~~Company ~~expenses~~presents ~~were~~certain non-GAAP ~~nil~~financial ~~for the three months ended November 30~~measures, ~~2025,~~including ~~compared~~Adjusted toOperating ~~$652~~Income (Loss) and ~~$1,045,~~Adjusted ~~respectively~~EBITDA, inas ~~the~~supplemental ~~prior-year period.~~metrics ~~The~~to ~~decreases~~assist investors ~~reflect~~in ~~the~~evaluating ~~absence of discretionary donations and~~ the ~~expiration~~Company’s ofoperating ~~certain short-term lease commitments~~performance.

~~Insurance~~These measures exclude certain items, including:

~~Insurance expense~~● ~~increased~~Non-cash tofair ~~$34,675~~value ~~for~~adjustments ~~the~~related ~~three~~to ~~months~~digital ~~ended~~assets; ~~November~~● ~~30,~~Changes ~~2025, compared to $27,477~~ in the ~~same~~fair ~~period~~value of ~~the~~warrant ~~prior~~and ~~year, representing~~derivative anliabilities; ~~increase~~● ofFinancing-related ~~$7,198,~~costs orassociated ~~approximately~~with ~~26.2%,~~capital ~~primarily~~raising ~~due~~activities; to● ~~higher~~Certain ~~premiums~~items ~~associated~~that ~~with~~may ~~coverage~~not ~~renewals~~be ~~and~~comparable ~~expanded insurance~~across ~~requirements~~reporting periods.

24Management believes these measures provide additional insight into period-to-period operating performance by reducing the impacts of items that are subject to significant variability or are not directly reflective of the Company’s operating performance for the period.

~~Expenses~~However, these measures have limitations. In particular, fair value adjustments related to digital assets and financial instruments may be significant and recurring, and are an integral component of the Company’s results of operations.

Three months ended	November 30, 2025 ($)			November 30, 2024 ($)			Increase/ (Decrease) ($)			Increase/ (Decrease) %
Advertising and marketing		124,398			273,009			(148,611	)		(54.43	)
Salaries, wages and benefits		394,850			436,365			(41,515	)		(9.51	)
Interest expense and bank charges		265,236			174,505			90,731			51.99
Depreciation		222,800			185,523			37,277			20.09
Fair value loss on crypto assets		6,140,379			-			6,140,379			100.00
Government incentive		(26,973	)		(27,219	)		246			(0.90	)

These measures should not be considered in isolation or as a substitute for financial results prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other companies.

~~Operating~~The Company presents GAAP results with ~~Expenses~~equal or greater prominence than non-GAAP measures and provides a reconciliation to the most directly comparable GAAP measures.

~~Three Months~~These ~~Ended~~measures ~~November~~are 30intended to supplement, and ~~2025~~not ~~Compared~~replace, tothe ~~November~~Company’s ~~30,~~GAAP ~~2024~~results

~~Advertising~~Six ~~and~~Months ~~Marketing~~Ended February 28, 2026

~~Advertising~~Adjusted ~~and~~Operating ~~marketing~~Income ~~expenses~~(excluding ~~for~~fair ~~the~~value three months ended November 30, 2025 were $124,398, compared to $273,009 in the same period of the prior year, representing a decrease of $148,611, or approximately 54.4%. The decrease reflects reduced discretionary marketing spend, continued emphasis on cost-efficient digital marketing initiatives, and more targeted agent-acquisition and retention campaigns during the quarter.changes)

Salaries, Wages and Benefits

For the six months ended:	February 28, 2026
	$
Net loss (GAAP)		(25,930,939	)
Adjustments to reconcile GAAP net loss to adjusted Operating Income (loss)
Unrealized loss on digital assets		23,026,713
Share based compensation		142,000
Financing-related costs (ELOC, warrants)		2,862,658
Advertising and marketing expenses not considered indicative of period-over-period comparability		473,057
Interest expense		629,280
Gain on fair value of warrant liabilities		(1,199,502	)
Adjusted operating income (loss) (Non-GAAP)		3,267

~~Salaries, wages~~Management ~~and~~uses ~~benefits~~these ~~totaled~~measures ~~$394~~internally; however,~~850~~ ~~for~~they ~~the~~are ~~three~~not ~~months~~intended ~~ended November 30, 2025, compared~~ to ~~$436,365~~represent incash ~~the~~flow ~~comparable~~or ~~prior-year~~liquidity ~~period. The decrease reflects workforce optimization~~ measures ~~implemented in prior periods, improved operational efficiency, and disciplined personnel cost management during the quarter~~.

~~Interest~~In addition to Adjusted Operating ~~Expense~~Income (Loss), management also evaluates performance using Adjusted EBITDA, which further excludes non-cash items such as depreciation and ~~Bank~~amortization, ~~Charges~~as well as interest-related items and other non-cash, items not indicative of ongoing operating performance non-operating items, to provide a view of operating performance on a cash-flow oriented basis.

Interest expense and bank charges increased to $265,236 for the three months ended November 30, 2025, compared to $174,505 in the same period of the prior year, representing an increase of $90,731, or approximately 51.99%. The increase was primarily attributable to higher borrowings associated with the Company’s Injective digital asset investment, including loans bearing interest at approximately 11.5%, which resulted in higher financing costs during the quarter.

For the six months ended:	February 28, 2026
	$
Adjusted operating income (loss) (Non-GAAP)		3,267
Adjustments:
Interest (income)		(214,334	)
Gain (loss) on change in fair value of derivative liability		(15,653	)
Foreign exchange (gain) loss		157,675
Depreciation		464,271
Adjusted EBITDA (Non-GAAP)		395,226

Depreciation

	Six months period ended February 28,
	2026		2025		2024
Mortgage volume		829,317,884		811,483,270		697,411,000
Gross billing		7,387,821		8,648,249		7,358,172
Commission expense		6,676,704		7,813,115		6,740,307
Net sales revenue		711,116		835,134		617,864
Underwriting revenue		50,756		57,707		73,781
Subscription revenue		418,463		368,119		378,632
Other income		248,932		251,276		282,581

Depreciation expense increased modestly to $222,800 for the three months ended November 30, 2025, compared to $185,523 in the prior-year period, representing an increase of $37,277 or approximately 20.09%. The increase reflects continued investment in technology infrastructure and capitalized software assets supporting the Company’s digital platform and internal systems.31

Change in Fair Value - Injective Digital Assets

	Three months ended February 28,
	2026		2025		2024
Mortgage volume		367,228,328		386,325,122		314,963,000
Gross billing		3,310,819		4,242,341		3,484,852
Commission expense		2,949,030		3,821,489		3,140,234
Net sales revenue		361,789		420,852		344,618
Underwriting revenue		23,611		30,364		31,675
Subscription revenue		210,715		185,939		195,387
Other income		111,227		106,154		213,189

~~During~~Six ~~the~~Months ~~three~~Ended ~~months~~February ~~ended November 30~~28, 2025, the Company recognized a $6.14 million non-cash loss related to changes in the fair value of its Injective digital asset holdings, compared to no such adjustment in the comparable prior-year period. This fair-value loss reflects market-driven valuation changes and did not result in a corresponding cash outflow during the quarter.2026

25To provide additional insight into the Company’s underlying operating performance, management presents adjusted operating income (loss), a non-GAAP financial measure.

~~Government~~This ~~Incentive~~measure excludes:

~~Government incentives~~● ~~for~~Non-cash, ~~the~~market-driven ~~three~~fair ~~months~~value ~~ended~~remeasurement ~~November~~of ~~30,~~digital ~~2025~~asset ~~totaled~~holdings ~~$(26,973),~~● ~~compared~~Changes ~~to $(27,219)~~ in ~~the~~fair ~~prior-year~~value ~~period,~~of ~~remaining relatively~~warrant ~~consistent~~liabilities ~~quarter~~● ~~over~~Financing-related ~~quarter~~costs ~~and~~associated ~~reflecting~~with ~~refundable~~capital ~~credits~~raising ~~and program-based support.~~activities

~~Liquidity~~After adjusting for these items, the Company’s adjusted operating income was $0.003 million, reflecting a substantially lower loss compared to the reported GAAP net loss and ~~Capital~~a ~~Resources~~meaningful improvement versus the $1.01 million loss compared to the six months period ended February 28, 2025.

~~Going~~Management ~~Concern~~believes this measure more accurately was driven by the performance of the Company’s core operating business, which improved meaningfully during the period, supported by:

~~The Company~~● ~~has~~Consistent ~~incurred~~mortgage-related ~~recurring~~revenue ~~operating~~generation ~~losses~~● ~~and~~Improved ~~continues~~cost tostructure ~~experience~~following ~~negative~~optimization ~~cash~~initiatives ~~flows~~across ~~from operations. For the three months period ended November 30~~headcount, ~~2025~~overhead, ~~the Company recorded a net loss of $6.4 million~~ and ~~negative~~other ~~operating cash flows of $498~~selling,~~367.~~ ~~As at November 30~~general, ~~2025, the Company had an accumulated deficit of $19.832 million~~ and aadministrative ~~working-capital deficit~~expenses. ~~These factors~~● ~~raise~~Early ~~substantial~~contributions ~~doubt~~from ~~about~~new ~~the~~revenue ~~Company’s ability to continue as a going concern within twelve months after the date of these financial statements.~~streams

●This improvement ~~Management~~was ~~has~~driven ~~developed~~by ~~plans intended to improve liquidity and address these uncertainties. These plans include: ● Accessing additional capital through~~ the ~~Injective~~combined ~~Digital~~impact ~~Asset~~of ~~Treasury~~revenue ~~Initiative~~stability ~~● Pursuing additional financing~~ and ~~capital-raising~~the ~~activities~~structural asreduction ~~required~~in tothe ~~support~~Company’s ~~ongoing~~operating ~~operations and fund strategic initiatives. ● Continuing~~ cost~~-management measures~~ base, ~~including~~positioning ~~reductions~~the inbusiness ~~payroll,~~for improved operating ~~expenses,~~leverage ~~and~~as ~~discretionary~~revenue ~~spending~~scales.

~~While management~~ Management believes ~~these plans are achievable, there can be no assurance~~ that ~~the~~this ~~Company~~adjusted ~~will~~measure ~~obtain~~provides ~~the~~a ~~necessary~~more ~~financing~~meaningful orview ~~that~~of the ~~planned initiatives will be successful. If the~~ Company’s iscore ~~unable to secure adequate funding or generate positive~~ operating ~~results~~performance, ~~it may be unable to meet its obligations~~ as ~~they~~it removes ~~become~~the ~~due.~~effects of:

~~Our primary~~● ~~liquidity~~Market-driven ~~needs~~volatility ~~encompass~~in ~~working~~digital ~~capital,~~asset ~~capital~~fair ~~expenditures,~~market ~~and~~value ~~technology~~remeasurements ~~investments,~~● ~~particularly~~Financing ~~those~~activities and related toaccounting ~~enhancing our proprietary Pineapple Plus platform~~impacts, ~~supporting~~including ~~skilled personnel~~one-time, ~~and~~non-recurring ~~maintaining~~expenses ~~compliance~~for ~~infrastructure. These items continue to represent~~ the ~~largest~~period ~~components~~● ~~of our capital deployment. We finance these needs primarily through~~ Non-cash onremeasurement ~~hand, cash flow from operations, and strategic financing facilities obtained from external lenders and related parties.~~adjustments

~~The~~However, ~~following~~this ~~table~~non-GAAP ~~summarizes~~measure ~~our~~should ~~cash~~not ~~flows~~be ~~from~~considered ~~operating,~~in ~~investing~~isolation or as a substitute for financial results prepared in accordance with U.S. GAAP, and ~~financing~~may ~~activities:~~not be comparable to similarly titled measures used by other companies.

Three months ended	November 30, 2025 ($)			November 30, 2024 ($)			Increase/ (Decrease) ($)
Cash (used) provided in operating activities		(489,745	)		(663,597	)		173,852
Cash (used) provided by financing activities		11,954,105			1,188,036			10,766,069
Cash (used) provided in investing activities		(12,106,830	)		(282,298	)		(11,824,532	)
Cash at the end of the period		1,479,167			619,581			859,586

Digital Asset Treasury Strategy

~~Net~~The ~~cash~~Company ~~flow~~has ~~from~~implemented ~~(used~~a ~~in)~~disciplined ~~operating~~digital ~~activities~~asset treasury program designed to enhance capital efficiency and generate yield on excess capital. The primary objectives of this strategy include:

	Three months ended
Description	November 30, 2025 ($)			November 30, 2024 ($)
Operating activities
Net loss		(6,435,085	)		(656,894	)
Adjustments for the following non-cash items:
Depreciation of property and equipment		10,611			21,618
Bad debts written off		7,154			-
Amortization of intangible assets		182,493			131,030
Depreciation on right of use asset		29,696			32,874
Interest expense on lease liability		10,096			13,921
Fair value loss on crypto assets		6,140,379			-
Change in fair value of warrant liabilities		(97,430	)		(31,532	)
Foreign exchange gain (loss)		-			(5,089	)
Net changes in non-cash working capital balances:
Trade and other receivables		(58,663	)		(27,302	)
Prepaid expenses and deposits		(56,974	)		2,928
Accounts payable and accrued liabilities		(123,226	)		(33,677	)
Deferred Government Grant		(28,241	)		(45,236	)
Deferred revenue		(70,555	)		(66,238	)
		(489,745	)		(663,597	)

	●	Generating yield through staking activities
	●	Maintaining liquidity while optimizing capital allocation
	●	Supporting long-term balance sheet strength

2632

~~Net~~Modified ~~Cash~~Net ~~Used~~Asset inValue ~~Operating~~(mNAV) ~~Activities~~Framework

~~Net~~To ~~cash~~provide ~~used~~additional intransparency ~~operating~~into ~~activities for~~ the ~~three~~relationship ~~months~~between ~~ended November 30, 2025 was $489,745 compared to $663,597 for~~ the ~~same~~Company’s ~~period in~~market ~~the~~valuation ~~prior~~and ~~year,~~its ~~representing~~digital anasset ~~improvement of $173~~holdings,~~852.~~ ~~The reduction in operating cash outflows was primarily driven by~~management ~~non-cash~~utilizes ~~adjustments, including~~ a ~~$6.1~~modified ~~million~~net ~~change~~asset ~~in the fair~~ value ofmetric ~~Injective digital assets and depreciation and amortization~~(“mNAV”), ~~partially~~a ~~offset by changes in working~~non-~~capital~~GAAP ~~balances~~financial measure.

~~Working-capital~~mNAV ~~movements~~is ~~during~~defined ~~the~~as ~~quarter~~1) ~~included~~Enterprise ~~increases~~Value individed ~~trade~~by ~~and~~2) ~~other~~Treasury ~~receivables~~Value, prepaid expenses, and reductions in accounts payable and accrued liabilities, which together resulted in a net working-capital outflow. Non-cash items such as fair-value remeasurements, depreciation, amortization, and foreign exchange movements significantly reduced the impact of the net loss on operating cash flows but did not affect cash usage.where:

~~Net Cash~~● ~~Provided~~Enterprise byValue ~~Financing~~represents ~~Activities~~the Company’s market capitalization, adjusted for debt and cash balances; and ● Treasury Value represents the fair market value of digital assets held, as well as capital deployed in digital asset-related strategies, including stablecoin collateral, restricted balances, and yield-generating positions.

~~Net~~Management ~~cash~~believes ~~provided~~mNAV byis ~~financing~~a ~~activities~~useful metric for evaluating the ~~three~~extent ~~months ended November 30, 2025 totaled $11.95 million, compared~~ to ~~$1.19~~which ~~million in~~ the ~~comparable~~Company’s ~~prior-year~~market ~~period.~~valuation ~~The~~reflects ~~increase~~its ~~was~~underlying ~~primarily~~digital asset ~~attributable~~holdings toversus ~~additional~~its ~~borrowings~~operating ~~obtained~~business. ~~during the quarter~~However, ~~including financing~~mNAV ~~arrangements~~should ~~related~~not tobe ~~the~~considered ~~Company’s~~in ~~Injective~~isolation ~~digital~~or ~~asset~~as ~~investment~~a ~~strategy.~~substitute ~~These~~for ~~borrowings~~financial ~~provided significant~~results ~~liquidity~~prepared toin ~~support~~accordance ~~investment~~with ~~activities~~U.S. GAAP and ~~working-capital~~may ~~requirements,~~not ~~while~~be ~~also~~comparable ~~resulting~~to insimilarly ~~higher~~titled ~~interest~~measures ~~expense~~used ~~recognized during~~by ~~the~~other ~~quarter~~companies.

Net Cash Used in Investing Activities

	February 28, 2026
Common stock issued and outstanding		26,088,651
Share price	$	0.696
Market capitalization		18,157,701
Less: Cash		(17,736,423	)
Plus: Loans payable		18,972,000
Plus: Interest payable		134,837
Plus: Warrant liability		743,188
Enterprise Value		20,271,303

Crypto assets		22,427,134
Plus: Loans receivable		5,000,000
Plus: Interest receivable		35,068
Plus: Restricted cash		158,659
Plus: Derivative liability		18,730
Treasury Value		27,639,591

mNAV		0.73 : 1.00

~~Net~~As ~~cash~~of ~~used~~February ~~in investing activities for the three months ended November 30~~28, ~~2025 was $12.11 million~~2026, ~~compared to $0.28 million in~~ the ~~same period~~Company’s ofTreasury ~~the~~Value ~~prior~~consisted ~~year. The increase in investing cash outflows was driven~~ primarily ~~by purchases~~ of ~~Injective~~ digital assets, ~~during the~~including ~~quarter.~~Injective ~~These~~(INJ), ~~outflows~~as ~~reflect~~well ~~management’s~~as capital ~~execution~~deployed ofin ~~its~~ treasury ~~and capital~~-~~allocation~~related ~~strategy and did not relate to routine capital expenditures~~strategies.

~~Overall~~The ~~Liquidity~~Company’s ~~Position~~cash balance is currently managed at the corporate level and is not fully allocated between operating liquidity and treasury activities. Accordingly, cash has been excluded from Treasury Value for purposes of the mNAV calculation in this period. To the extent cash is deployed into digital asset strategies in future periods, it is expected to be included within Treasury Value.

AsIn ~~of November 30~~addition, ~~2025,~~certain ~~the~~amounts ~~Company~~related ~~had~~to ~~cash~~financing and ~~cash~~collateral ~~equivalents of $1.48 million~~arrangements, ~~compared~~including tostablecoin ~~$2.34~~balances ~~million~~and atrestricted ~~November 30~~cash, ~~2024.~~may ~~The~~be ~~decrease~~included ~~reflects~~within ~~the~~Treasury ~~timing~~Value ofwhere ~~financing~~such ~~inflows~~amounts ~~and~~represent ~~significant~~capital ~~investing~~actively ~~outflows~~deployed ~~during~~in ~~the~~support ~~quarter,~~of ~~partially~~the ~~offset~~Company’s bydigital ~~improved~~asset ~~operating cash flows~~strategy.

~~Management~~The ~~continues~~Company’s totreasury ~~monitor~~strategy ~~liquidity~~is ~~closely,~~governed ~~particularly~~by ininternal ~~light~~policies ofthat ~~increased~~prioritize ~~borrowing~~liquidity ~~levels~~ and ~~associated~~risk ~~interest costs. Based on current operating plans~~management, expected cash flows, and access to financing arrangements, management believes the Company has sufficient liquidity to meet its operating requirements and obligations for at least the next twelve months.including:

27● Maintaining minimum operating cash reserves ● Limiting the use of leverage ● Avoiding rehypothecation of assets ● Implementing governance through internal review processes

~~The~~Staking ~~following~~rewards ~~table~~generated ~~presents~~from ~~our~~digital ~~liquidity:~~asset holdings represent an incremental and recurring yield component of the Company’s capital allocation strategy.

Period Ended	November 30, 2025 ($)		August 31, 2025 ($)
Cash		1,479,167		2,117,371
Trade and other receivables		143,732		92,223
Prepaid expenses and deposit		166,975		110,001
		1,789,874		2,319,595
Current liabilities
Accounts payable and accrued liabilities		2,001,934		2,125,160
Loan payable		11,983,087		-
Deferred revenue		37,997		108,552
Loan from directors		629,728		629,120
Current portion of lease liability		140,288		138,859
		14,793,034		3,001,691

Digital asset holdings are measured at fair value, with changes recognized in earnings. As a result, reported financial results may experience volatility that may introduce volatility that does not align with management’s assessment of period-to-period operating performance or cash generation.

As The calculation of ~~November~~mNAV ~~30,~~involves ~~2025~~significant judgment, including the ~~Company’s~~determination ~~total~~of ~~current~~which assets ~~were~~and ~~$1,789,874,~~liabilities ~~compared~~are toincluded ~~$2,319,595~~in asTreasury ofValue, ~~August~~and ~~31,~~may ~~2025,~~differ ~~representing~~from methodologies aused ~~decrease~~by ofother ~~approximately~~companies. ~~$529~~Accordingly,~~721.~~ ~~The decrease was primarily attributable to changes in~~ the ~~Company’s~~measure ~~cash~~may ~~position~~not ~~during the~~be ~~quarter,~~comparable ~~partially~~and ~~offset~~could byproduce ~~increases~~materially indifferent ~~trade~~results ~~and~~if ~~other~~calculated under ~~receivables~~alternative ~~and prepaid expenses~~assumptions.

~~Cash~~Revenue decreased to $1,479,167 as of November 30, 2025, from $2,117,371 as of August 31, 2025. The decrease primarily reflects the timing of significant investing activities during the quarter, including capital deployed toward the Company’s digital-asset investment strategy, partially offset by financing inflows and ~~operating~~Operating ~~cash flows.~~Metrics

~~Trade and other receivables increased to $143,732 as of November 30, 2025, compared to $92,223 at August 31, 2025.~~ The ~~increase was primarily~~ ~~attributable~~Company’s toprimary ~~the~~sources ~~timing~~ of ~~billings~~revenue ~~and collections toward the end of the quarter.~~include:

~~Prepaid expenses~~● ~~and~~Commissions ~~deposits~~earned ~~increased to $166,975 as of November 30, 2025,~~ from ~~$110,001~~mortgage asoriginations of● ~~August~~Underwriting ~~31, 2025, reflecting the timing of advance payments for software subscriptions, insurance premiums, and other service contracts.~~income

~~Current~~● ~~Liabilities~~Subscription fees charged to mortgage agents ● Digital asset-related income, including staking rewards ● Other ancillary income streams

~~As of November 30, 2025, the~~Six ~~Company’s~~Months ~~total~~Ended ~~current~~February ~~liabilities were $14~~28,~~793,034,~~ compared to $3,001,691 as of August 31, 2025. The increase was driven primarily by the recognition of the FalconX loan payable of $11,983,087, which was classified as a current liability based on its contractual repayment terms in effect at the balance-sheet date. Accounts payable and accrued liabilities decreased modestly to $2,001,934 from $2,125,160, reflecting the timing of vendor payments and accrued expenses. Deferred revenue declined to $37,997 from $108,552 as services were delivered during the quarter. The loan from directors, totaling $629,728, remained substantially unchanged, while the current portion of lease liabilities increased slightly to $140,288 from $138,859, primarily due to scheduled lease payments.2026

~~Overall,~~For the ~~Company’s~~six-month ~~liquidity~~period, ~~position~~the atCompany ~~November~~generated ~~30,~~revenue ~~2025~~from ~~reflects~~a ~~the~~diversified ~~timing~~set of ~~operating~~sources, ~~investing,~~supported ~~and~~by ~~financing~~both ~~activities~~its ~~during the~~mortgage ~~quarter.~~operations ~~Management continues to monitor working-capital levels~~ and ~~cash flows closely and believes that existing cash resources,~~ ~~together~~digital ~~with~~asset ~~expected operating cash flows and access to financing arrangements, are sufficient to meet the Company’s short-term obligations and near-term operating requirements~~strategy.

~~Critical Accounting~~● ~~Policies~~Mortgage ~~and~~volume ~~Significant~~increased ~~Judgments~~to $829.3 million, compared to $811.5 million in the prior-year period, reflecting modest improvement in origination activity. ● Gross billings were $7.4 million, compared to $8.6 million in the prior year, primarily reflecting competitive pricing dynamics and ~~Estimates~~market conditions. ● Commission expense totaled $6.7 million, consistent with the level of mortgage activity. ● Net sales revenue was $0.7 million, compared to $0.8 million in the prior year.

~~This~~Additional ~~management’s~~revenue ~~discussion~~streams and analysis of the financial condition and results of operations is based on our financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of Revenue and expenses during the reported period. Per U.S. GAAP, we base our estimates on historical experience and various other assumptions we believe to be reasonable under the circumstances. Actual results may differ from these estimates if conditions differ from our assumptions. While our significant accounting policies are more fully described in Note 2 in the “Notes to Financial Statements,” we believe the following accounting policies are critical to making effective judgments and estimates in preparing our financial statements.included:

28● Underwriting revenue of $0.05 million ● Subscription revenue of $0.4 million, reflecting continued agent platform engagement ● Staking income of $0.2 million, representing income generated from the Company’s digital asset holdings ● Other income of $0.2 million, consistent with prior periods

~~Revenue~~Overall, ~~Recognition~~while mortgage-related revenues remained relatively stable, the Company’s diversification into digital asset activities contributed incremental income streams during the period.

~~The~~Three ~~Company~~Months ~~has~~Ended ~~adopted~~February ~~ASC 606~~28, Revenue from Contracts with Customers, which provides a single comprehensive model for revenue recognition. The core principle of the standard is that Revenue should be recognized when goods or services are transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard introduced a new contract- based revenue recognition model with a measurement approach that is based on an allocation of the transaction price. It establishes a five-step model to account for revenue arising from contracts with customers. Under this standard, Revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The standard requires entities to exercise Judgment, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with customers. Additionally, the standard specifies the accounting for incremental costs of obtaining a contract and the costs directly related to fulfilling a contract.2026

~~When~~For the ~~Company~~three-month ~~transfers~~period ~~goods~~ended orFebruary ~~services to a customer~~28, ~~Revenue is recognized at an amount that reflects the consideration expected to be received.~~2026:

~~The Company~~● ~~operates~~Mortgage anvolume ~~online~~was ~~platform~~$367.2 million, ~~that~~compared ~~enables~~to ~~brokers~~$386.3 ~~and~~million ~~agents~~in the prior-year period ● Gross billings were $3.3 million, compared to ~~efficiently~~$4.2 ~~close~~million ~~deals~~in the prior year ● Commission expense totaled $3.0 million ● Net sales revenue was $0.36 million, compared to $0.42 million in the prior year

~~The~~Other ~~Company’s~~revenue ~~subsidiary,~~components Pineapple Insurance Inc., generates Revenue by charging premiums for insurance policies and services. Pineapple Insurance is affiliated with a major insurance company, from which it earns commissions for providing services, primarily mortgage insurance. Mortgage insurance is a offered for each mortgage. Pineapple Insurance acts as the agent that supplies insurance services to the consumer and is paid a commission from the premiums collected by the insurance company whose products and services it provides to the end consumer.included:

~~Basis~~ ● Underwriting revenue of ~~presentation~~$0.02 million ● Subscription revenue of $0.2 million ● Staking income of $0.2 million, ~~functional~~reflecting ~~and~~the ~~presentation~~Company’s ~~currency~~digital asset strategy ● Other income of $0.1 million

The ~~Company’s~~decrease ~~headquarters is~~ in ~~Ontario,~~mortgage-related ~~Canada,~~revenue ~~and~~metrics during the ~~functional~~quarter ~~currency~~was isdriven inby ~~Canadian~~ongoing ~~Dollars~~market ~~(CAD)~~softness ~~with~~and ~~the~~competitive ~~presentation~~pressures, ~~currency~~partially ~~being~~offset USby ~~Dollars~~stable ~~(USD).~~subscription ~~The~~revenue ~~Company’s subsidiaries have a functional currency of CAD~~ and ~~presentation~~contributions ~~currency~~from ofdigital ~~USD~~asset ~~which have been applied consistently~~activities.

~~There~~Overall ~~will~~Performance ~~be a foreign currency translation undertaken to report under US GAAP which will be the basis of presentation.~~Commentary

~~Foreign~~Management ~~Currency~~believes ~~Transactions~~that the Company’s operating results for both the three- and ~~Translation~~six-month periods demonstrate:

~~Although the~~● ~~Company~~Resilience ~~conducts~~in ~~substantially~~core ~~all~~mortgage ofoperations, ~~its~~despite ~~operating~~a ~~activities~~challenging ~~and~~macroeconomic ~~generates~~environment ~~nearly~~● ~~all~~Successful ~~revenues~~diversification ~~and~~into ~~expenses~~digital inasset ~~Canadian dollars (“CAD”)~~activities, itincluding ~~engages~~staking inincome ~~certain~~generation ~~financing~~● ~~and~~Continued ~~vendor~~focus ~~transactions~~on ~~that~~cost ~~are~~management ~~denominated in U.S. dollars (“USD”). These USD-denominated balances include equity proceeds raised in USD, payments to U.S.-based service providers,~~ and ~~other~~operational ~~non-operating expenditures.~~efficiency

~~Foreign~~While ~~currency~~reported ~~transactions~~results ~~are~~were ~~translated~~significantly ~~into~~impacted ~~CAD~~by atnon-cash, ~~the~~market-driven ~~exchange~~fair ~~rate~~value inremeasurement ~~effect~~of ondigital ~~the~~asset ~~transaction~~holdings ~~date.~~and ~~Monetary~~financing-related costs, ~~assets~~the ~~and~~Company’s ~~liabilities denominated~~underlying inoperating ~~USD~~performance ~~are~~improved ~~remeasured~~modestly atduring the ~~closing~~period. ~~exchange~~These ~~rate~~results atreflect ~~each~~the ~~reporting~~impact ~~date,~~of structural ~~and~~cost ~~the~~reductions ~~resulting~~implemented ~~foreign~~during ~~exchange~~the ~~gains~~period, orwhich ~~losses are~~have ~~recognized~~materially inlowered the ~~consolidated~~Company’s ~~statements~~fixed ofcost ~~operations~~base and improved its operating leverage profile.

InThe ~~addition,~~Company’s ~~because~~primary ~~the~~sources ~~Company~~of ~~reports~~revenue ~~its~~include ~~consolidated~~commissions ~~financial~~earned ~~statements~~from inlenders ~~U.S.~~on ~~dollars,~~mortgage ~~CAD-denominated assets~~originations, ~~liabilities,~~underwriting ~~revenues~~income, and membership ~~expenses~~fees ~~are~~charged ~~translated~~to ~~into~~mortgage ~~USD using appropriate period-end or average exchange rates~~agents. ~~These~~In ~~translation~~addition, ~~adjustments~~the ~~are~~Company ~~recorded within~~generates other ~~comprehensive~~ income, ~~(loss)~~including ~~and~~staking dorewards ~~not~~earned ~~impact~~on ~~the~~its digital ~~Company’s~~asset ~~underlying cash flows or economic performance~~holdings.

~~Lease~~Path ~~Accounting~~to Operating Leverage

~~The~~As ~~relevant~~the ~~criteria~~Company ~~applicable~~advances isits ~~ASC~~strategic ~~842. We assess at contract inception whether a contract is~~initiatives, ormanagement ~~contains, a lease. That~~ is, iffocused ~~the contract~~on ~~conveys~~driving ~~the~~operating ~~right~~leverage ~~to control the use of an identified asset for a period of time in exchange for consideration. We apply a single recognition~~ and ~~measurement~~improving ~~approach~~earnings ~~for~~quality all leases, except for short-term leases and leases of low-value assets. We recognize lease liabilities to make lease payments and right-of- use assets representing the right to use the underlying assets.through:

29● Increasing revenue per mortgage transaction ● Expanding higher-margin ancillary and subscription-based revenue streams ● Driving efficiency across operations and reducing cost per funded loan

AtThe ~~the~~Company ~~commencement~~expects ~~date~~that ofimprovements ~~the lease, we recognize lease liabilities measured at the present value of lease payments to be made over the lease term. Lease payments include fixed payments (including~~ in~~-substance~~ ~~fixed~~agent ~~payments) less any lease incentives receivable~~productivity, ~~variable lease~~data ~~payments that depend on an index or a rate~~monetization, and ~~amounts~~capital ~~expected~~efficiency towill becontribute ~~paid under residual value guarantees. Lease payments also include the exercise price of a purchase option reasonably certain~~ to ~~be exercised by us and payments of penalties for terminating the lease, if the lease term reflects us exercising the option to terminate. Variable lease payments that do not depend on an index or~~ a ~~rate~~ ~~are~~more ~~recognized as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present~~scalable value of lease payments, we use our incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and ~~reduced~~profitable ~~for~~operating ~~the~~model ~~lease~~over ~~payments made~~time. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

We recognize right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.33

~~Investments~~Gross Billing:

WeThe ~~invested~~Company inearns arevenue ~~commercial~~from its mortgage ~~firm,~~brokerage ~~MCommercial,~~operations based inon ~~Montreal~~commissions ~~and~~received ~~Toronto,~~from ~~Canada~~financial ~~representing~~institutions 5%with ofwhom it has contractual arrangements. Gross billing represents the total ~~issued~~commission ~~and~~earned ~~outstanding shares.~~from ~~This~~lending ~~strategic~~institutions ~~partnership~~on ~~allows~~funded ~~Pineapple~~mortgage ~~residential~~transactions. As the Company engages licensed mortgage agents toand ~~have~~brokers ~~access~~who toare aresponsible ~~leading~~for ~~commercial~~originating and closing mortgage ~~firm~~transactions, a significant portion of the gross billing is paid out as commissions and ~~experts~~referral fees to those agents. Accordingly, ~~which~~the ~~will~~Company ~~expand~~presents revenue ~~their~~on ~~product~~a ~~offerings~~net basis, ~~service~~calculated ~~levels~~as gross billing less commissions and ~~corporate~~payouts ~~Revenue~~to ~~through~~mortgage ~~increased~~agents, ~~transactions~~as the Company acts as an agent in these arrangements.

~~The~~Under ~~Company~~ASC ~~entered~~606, ~~into~~Revenue afrom ~~share~~Contracts ~~purchase~~with ~~agreement~~Customers, ~~with~~the ~~9142-2964~~Company ~~Quebec~~evaluates ~~Inc.~~each ~~pursuant~~contract to ~~which~~identify ~~the~~performance ~~Company~~obligations, ~~acquired~~determine ~~five~~the transaction ~~Class~~price, Aallocate ~~Shares of~~the ~~7326904~~transaction ~~Canada~~price ~~Inc.~~to ~~(dba~~the asperformance ~~Mortgage~~obligations, ~~Alliance~~and ~~Corporation)~~recognize ~~(“Alliance”),~~revenue ~~representing~~when 5%control of the ~~total issued and outstanding~~promised ~~shares~~service ~~of Alliance. Alliance~~ is atransferred ~~mortgage~~to ~~brokerage~~the ~~firm based in Ontario, Canada with locations in Calgary, Vancouver and Halifax~~customer.

~~The~~For ~~total~~each ~~amount~~mortgage ~~of both investments was recorded at fair value~~transaction, ~~and~~revenue ~~any impairment loss~~ is recognized ~~in profit and loss account.~~when:

30● A binding contract exists between the borrower, the mortgage agent, and the lending institution; ● The Company provides access to, and support through, its technology platform to facilitate the mortgage transaction; ● The mortgage loan is funded by the lender; and ● The Company’s commission from the lender becomes fixed and collectible.

~~Item~~The 3Company’s performance obligation is satisfied at a point in time, when the mortgage is funded and all platform-related services for that transaction have been completed. ~~Quantitative~~Revenue is measured as the net amount retained by the Company after remitting the applicable commission and ~~Qualitative~~referral ~~Disclosures~~fees ~~about~~to ~~Market~~mortgage ~~Risk~~agents and sub-brokers.

AsThis anet ~~smaller~~revenue ~~reporting~~was ~~company~~driven by the Company’s role as an intermediary providing technology infrastructure, ~~this~~compliance ~~disclosure~~oversight, isand workflow ~~not~~support, ~~required~~rather than acting as the primary obligor in the mortgage funding transaction.

~~Item~~Subscription ~~4. Controls and Procedures~~Revenue:

~~Evaluation~~Users access and use our technology platform, Pineapple Plus, for a flat monthly service fee of ~~Disclosure~~$145.00 ~~Controls~~In exchange for this fee, users of Pineapple Plus have access to a network management system that allows them to perform back- office procedures more efficiently and ~~Procedures~~effectively. This platform will enable them to process the deal described above prepare, and complete the package for submission to be funded by the financial institution. We have a strong user base, which has experienced significant growth since our inception. Revenue is recognized at the beginning of the month when a user is invoiced and pays the fee.

~~Management~~The Company ~~evaluated~~continues to expand the ~~effectiveness~~functionality of ~~the~~ ~~Company’s~~its ~~internal~~Pineapple ~~control~~Plus ~~over~~platform, ~~financial~~including ~~reporting~~initiatives asfocused ofon ~~November~~data 30standardization, workflow ~~2025.~~digitization, ~~Based~~and onthe ~~this~~development ~~evaluation,~~of ~~management~~a ~~concluded that~~unified adata ~~material~~architecture ~~weakness~~across ~~continues~~mortgage totransactions. ~~exist~~These ~~related~~efforts are expected to form ~~segregation~~the offoundation ~~duties~~for ~~within~~future ~~the~~data-driven ~~finance~~products, ~~function~~including analytics, ~~primarily~~benchmarking, ~~due~~and toother ~~the~~value-added ~~limited number~~services ofthat ~~personnel~~may ~~responsible~~be ~~for~~offered on ~~financial~~a ~~reporting~~subscription ~~and~~or ~~related~~recurring ~~control~~revenue ~~activities~~basis.

~~Notwithstanding~~Management believes ~~this~~that, ~~material~~over ~~weakness~~time, ~~management believes~~these ~~that~~initiatives ~~the~~may ~~condensed~~enable ~~consolidated~~the ~~financial~~Company ~~statements~~to ~~included~~monetize inits ~~this~~platform ~~Quarterly~~beyond ~~Report~~traditional ontransaction-based ~~Form~~revenue, supporting 10higher-Qmargin, ~~fairly~~recurring ~~present,~~revenue instreams ~~all~~and ~~material respects~~improved earnings quality. However, ~~the~~these ~~Company’s~~capabilities ~~financial~~remain ~~position~~under development, and ~~results~~there ofcan ~~operations,~~be ~~and~~no ~~cash~~assurance ~~flows~~as into ~~accordance~~their ~~with~~timing, ~~U.S.~~scope, ~~GAAP~~or ultimate commercial impact.

~~Management~~These initiatives ~~has~~may ~~initiated~~also ~~remediation~~support ~~efforts~~the tostructured ~~address~~digitization ~~this material weakness, including enhancing review~~ and ~~approval controls~~utilization ~~and planning for the engagement~~ of ~~external accounting and internal~~mortgage-~~control~~related ~~resources.~~data ~~These remediation activities are ongoing~~assets, ~~and~~ ~~the~~enabling ~~material~~new ~~weakness~~forms ~~has not been fully remediated as~~ of ~~the~~data accessibility, ~~end~~reporting, ofand ~~the~~monetization ~~reporting~~over ~~period~~time.

~~Changes~~Staking ~~in Internal Control Over Financial Reporting~~Income

~~There~~The ~~have~~Company ~~been~~earns nostaking ~~changes~~income infrom ~~our~~its ~~internal~~digital ~~control~~asset ~~over~~holdings ~~financial~~by ~~reporting~~participating ~~that~~in ~~occurred~~blockchain ~~during~~network ~~our~~validation ~~last~~activities. ~~fiscal~~Staking ~~quarter~~rewards are ~~that~~received ~~have~~in ~~materially affected,~~the orform ~~are~~of ~~reasonably~~additional ~~likely~~digital totokens ~~materially~~and ~~affect,~~are ~~our~~not ~~internal~~considered ~~control~~revenue ~~over~~from ~~financial~~contracts ~~reporting~~with customers under ASC 606.

~~PART~~Staking IIincome is recognized within other income when the Company obtains control of the reward tokens, which generally occurs when the rewards are received or become claimable by the Company. ~~OTHER~~Such ~~INFORMATION~~rewards are measured at fair value at the time of receipt using quoted market prices in active markets (Level 1 inputs) in accordance with ASC 820, Fair Value Measurement.

~~Item~~Subsequent 1to ~~Legal~~initial ~~Proceedings~~recognition, the related digital assets are included within digital assets and are remeasured at fair value at each reporting date, with changes in fair value recognized in earnings in accordance with the Company’s accounting policy for digital assets.

ToUnderwriting ~~our best knowledge, we are currently not a party to any legal proceedings that, individually or in the aggregate, are deemed to be material to our financial condition or results of operations.~~Fee:

~~Item~~Users 1Acan ~~Risk~~optionally ~~Factors~~use our expert risk pre-assessment service, which assists them in pre-underwriting their loans before submission to a lender for approval and funding. This service significantly reduces the time for the lender partners’ assessment of the deal. For mortgages of $179,575 and less, we charge an underwriting fee of $251; for mortgages greater than $179,575, the Company charges an underwriting fee of $359. The Company has undertaken a special program to educate and inform users of this service in further detail. 40% of the deals originated by users are using this service. This program is intended to further increase the number of deals and improve the services offered.

~~Smaller~~Insurance ~~reporting~~commission ~~companies are not required to provide the information required by this item.~~Revenue:

~~Item~~The 2Company ~~Unregistered~~earns ~~Sales~~insurance commission revenue through Pineapple Insurance, which acts as a broker for third-party insurance carriers. When customers purchase insurance policies through our platform, the Company receives commissions from the insurance providers based on premiums written. The Company acts as a principal in these transactions because it is responsible for sourcing customers, facilitating the placement of ~~Equity~~insurance ~~Securities~~products, and ~~Use~~managing the full service process. Commission revenue is recognized at the point in time when the underlying insurance policy becomes effective and our performance obligations are satisfied. Insurance commission revenue is presented net of ~~Proceeds~~referral fees, agent commissions, and other consideration payable to mortgage agents or third-party partners, as these amounts represent direct transaction-related costs. Renewal commissions are recognized only when they become fixed and determinable based on confirmation from the insurance carriers.

31Other Income:

~~Item~~Other 3income ~~Defaults~~includes ~~Upon~~a ~~Senior~~technology ~~Securities~~setup fee and sponsorship fee.

~~None.~~34

~~Item~~Components 4of ~~Mine~~operating ~~Safety Disclosures.~~expenses

~~Not~~Our ~~applicable~~operating expenses, as presented in the statement of operations data, include salaries, commissions and team member benefits, general and administrative expenses, marketing and advertising expenses, and others.

~~Item~~Salaries 5and ~~Other~~commissions ~~Information.~~and team member benefits

~~None~~All payroll expenses include our team members’ salaries, commissions, and benefits.

~~Item~~Selling, 6.general ~~EXHIBITS~~and administrative expenses

Exhibit No.		Description
31.1 *		Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a).
31.2 *		Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a).
32.1 *		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 *		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS *		Inline XBRL Instance Document.
101.SCH* *		Inline XBRL Taxonomy Extension Schema Document.
101.CAL* *		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF* *		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB* *		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE *		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended November 30, 2025, formatted in Inline XBRL (included in Exhibit 101).

Selling, general and administrative expenses include software subscriptions, license fees, professional services, marketing expenses, and other operating expenses.

* Filed herewith.Share-based compensation

32Share-based compensation comprises equity awards and is measured and expensed accordingly under Accounting Standards Codification (“ASC”) 718 Compensation—Stock Compensation.

~~SIGNATURES~~Comparison of the six months ended February 28, 2026 and 2025

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Six months ended	February 28, 2026 ($)			February 28, 2025 ($)			Increase/ (Decrease) ($)			Increase/ (Decrease) %
Revenue		1,429,267			1,512,236			(82,969	)		(5.49	)
Expenses
Selling, general and administrative		1,052,703			995,190			57,513			5.78
Advertising and Marketing		416,852			326,945			89,907			27.50
Salaries, wages and benefits		350,730			828,764			(478,034	)		(57.68	)
Interest expense and bank charges		629,280			273,812			355,468			129.82
Depreciation		464,271			429,645			34,626			8.06
Fair value loss on crypto assets		23,026,713			-			23,026,713			100.00
Share based compensation		142,000						142,000			100.00
Government incentive		(54,369	)		(48,518	)		(5,851	)		12.06
Total expense		25,806,462			2,805,838			23,222,342			827.64
Loss from operations		(24,377,195	)		(1,293,602	)		(23,083,593	)		1,784.44
Foreign exchange gain (loss)		(157,675	)		4,021			(161,696	)		(4021.29	)
Interest income		214,334			-			214,334			100.00
Gain on change in fair value of derivative liability		15,653			-			15,653			100.00
Financing cost – ELOC		(1,500,000	)		-			1,500,000			100.00
Financing cost - warrants		(1,325,558	)		-			1,325,558			100.00
Gain (loss) on change in fair value of warrant liability		1,199,502			35,591			1,163,911			3,270.24
Net loss		(25,930,939	)		(1,253,990	)		(24,676,949	)		1,967.87

	PINEAPPLE FINANCIAL INC.
Date: January 20, 2026	By:	/s/ Shubha Dasgupta
		Shubha Dasgupta
		Chief Executive Officer
Date: January 20, 2026	By:	/s/ Sarfraz Habib
		Sarfraz Habib
		Chief Financial Officer

Comparison of the three months ended February 28, 2026 and 2025

Three months ended	February 28, 2026 ($)			February 28, 2025 ($)			Increase/ (Decrease) ($)			Increase/ (Decrease) %
Revenue		707,342			743,309			(35,967	)		(0.05	)
Expenses
Selling, general and administrative		659,855			572,853			87,002			15.19
Advertising and Marketing		293,749			57,101			236,648			414.44
Salaries, wages and benefits		188,529			391,418			(202,889	)		(51.83	)
Interest expense and bank charges		364,782			100,005			264,777			264.76
Depreciation		241,589			242,181			(592	)		(0.24	)
Fair value loss on crypto assets		16,882,557			-			16,882,557			100.00
Share based compensation		142,000			-			142,000			100.00
Staking income		(221,718	)		-			(221,718	)		100.00
Government incentive		(27,397	)		(21,301	)		(6,096	)		28.62
Total expense		18,523,946			1,342,257			17,181,689			1,280.06
Loss from operations		(17,816,604	)		(598,948	)		(17,217,656	)		2,874.65
Foreign exchange gain (loss)		(188,189	)		(969	)		(187,220	)		19,320.95
Interest income		214,334			-			214,334			100.00
Gain on change in fair value of derivative liability		15,653			-			15,775			100.00
Financing cost – ELOC		(1,500,000	)		-			(1,500,000	)		100.00
Financing cost – warrants		(1,325,558	)		-			(1,325,558	)		100.00
Gain (loss) on change in fair value of warrant liability		1,104,576			4,468	)		1,328,388			29,731.15
Net loss		(19,495,788	)		(595,449	)		(18,899,370	)		3,168.81

RESULTS OF OPERATIONS

Selling, General and Administrative Expenses

The breakdown of selling, general and administrative expenses for the six months period ended Feb 28, 2026 are as follows:

Six months ended	February 28, 2026 ($)		February 28, 2025 ($)		Increase/ (Decrease) ($)			Increase/ (Decrease) %
Software subscription		99,840		449,845		(350,005	)		(77.81	)
Office and general		140,244		82,638		57,606			69.71
Professional fee		304,971		60,688		244,283			402.52
Dues and subscription		219,212		199,336		19,876			9.97
Rent		104,973		85,304		19,669			23.06
Consulting fee		30,204		29,604		600			2.03
Travel		24,541		23,247		1,294			5.57
Donations		-		784		(784	)		(100.00	)
Lease expense		-		1,430		(1,430	)		(100.00	)
Insurance		128,718		62,314		66,404			106.56
		1,052,703		995,190		(57,513	)		5.78

Revenue

Revenue for the six months ended February 28, 2026 was $1.65 million, compared to $0.77 million in the comparable prior-year period, representing an increase of $0.88 million, or 114.9%.

The increase in revenue was primarily attributable to:

	●	Increased mortgage origination activity, contributing to higher commission-based revenues; and
	●	Growth in underwriting and subscription-based revenue streams, reflecting continued platform engagement and service adoption.

In addition, the Company recognized staking income of $221,718 during the period, generated from its digital asset holdings. In accordance with U.S. GAAP, staking income is presented within other income and not included in revenue.

Operating Expenses

Total operating expenses for the six months ended February 28, 2026 were $26.0 million, compared to $2.8 million in the prior-year period, representing a significant increase.

The increase in operating expenses was primarily driven by:

	●	A $23.0 million non-cash, market-driven fair value remeasurement of digital asset holdings;
	●	$1.5 million of financing costs related to ELOC arrangements;
	●	$1.3 million of warrant-related financing costs; and
	●	An increase of $0.6 million in interest expense associated with new borrowings.

Other notable changes in operating expenses include:

	●	Advertising and marketing expenses increased by 27.5%, reflecting investments in growth and customer acquisition initiatives;
	●	Salaries, wages and benefits decreased by 57.7%, primarily due to workforce optimization initiatives implemented in prior periods; and
	●	Selling, general and administrative expenses increased modestly by 5.8%, reflecting higher professional fees and insurance costs, partially offset by reductions in software-related expenses.

Operating Loss and Net Loss

As a result of the foregoing, the Company reported:

	●	Loss from operations of $24.4 million, compared to $1.3 million in the prior-year period; and
	●	Net loss of $25.9 million, compared to $1.25 million in the prior-year period.

The increase in net loss was primarily attributable to:

	●	non-cash, market-driven fair value remeasurement of digital asset holdings; and
	●	Financing-related costs, including warrant and ELOC-related expenses;

These were partially offset by improved revenue performance and ongoing cost management initiatives.

Other Income and Expenses

Other income and expenses for the six-month period included:

	●	Interest income of $214,334;
	●	Gain on change in fair value of warrant liabilities of $1.2 million;
	●	Foreign exchange loss of $157,675; and
	●	Staking income of $221,718, recognized within other income.

These items reflect the Company’s financing activities and exposure to digital asset markets and are not directly related to its core mortgage brokerage operations.

Three Months Ended February 28, 2026 Compared to February 28, 2025

Revenue

Revenue for the three months ended February 28, 2026 was $0.93 million, compared to $0.74 million in the comparable prior-year period, representing an increase of $0.19 million, or 25.0%.

The increase in revenue was driven by:

	●	Improved mortgage origination activity; and
	●	Continued growth in subscription and underwriting-related revenue streams.

During the quarter, the Company also recognized staking income of $221,718, which is presented within other income.

Operating Expenses

Total operating expenses for the three months ended February 28, 2026 were $18.7 million, compared to $1.3 million in the prior-year period.

The increase was primarily attributable to:

	●	A $16.9 million non-cash, market-driven fair value remeasurement of digital asset holdings;
	●	$1.5 million ELOC-related financing costs;
	●	$1.3 million warrant-related financing costs; and
	●	An increase of $0.3 million in interest expense.

Additional changes include:

	●	A significant increase in advertising and marketing expenses ( 414%), reflecting targeted investments in growth initiatives;
	●	A decrease in salaries, wages and benefits ( 51.8%), reflecting prior cost optimization measures; and
	●	An increase in selling, general and administrative expenses ( 15.2%), primarily driven by higher professional and administrative costs.

Operating Loss and Net Loss

As a result of the foregoing, the Company reported:

	●	Loss from operations of $17.8 million, compared to $0.6 million in the prior-year period; and
	●	Net loss of $19.5 million, compared to $0.6 million in the prior-year period.

The increase in net loss was primarily driven by:

	●	Non-cash, market-driven fair value remeasurement of digital asset holdings; and
	●	Financing-related costs;

These were partially offset by revenue growth and continued cost management.

Other Income and Expenses

Other income and expenses for the quarter included:

	●	Interest income of $216,275;
	●	Gain on change in fair value of warrant liabilities of $1.1 million;
	●	Foreign exchange loss of $188,189; and
	●	Staking income of $221,718, recognized within other income.

Selling, General and Administrative Expenses

The breakdown of selling, general and administrative expenses for the six months period ended Feb 28, 2026 are as follows:

Six months ended	February 28, 2026 ($)		February 28, 2025 ($)		Increase/ (Decrease) ($)			Increase/ (Decrease) %
Software subscription		99,840		449,845		(350,005	)		(77.81	)
Office and general		140,244		82,638		57,606			(69.71	)
Professional fee		304,971		60,688		244,283			402.52
Dues and subscription		219,212		199,336		19,876			9.97
Rent		104,973		85,304		19,669			23.06
Consulting fee		30,204		29,604		600			2.03
Travel		24,541		23,247		1,294			5.57
Donations		-		784		(784	)		(100.00	)
Lease expense		-		1,430		(1,430	)		(100.00	)
Insurance		128,718		62,314		66,404			106.56
		1,052,703		995,190		(57,513	)		5.78

Selling, general and administrative (“SG&A”) expenses for the six months ended February 28, 2026 were $1.05 million, compared to $1.00 million for the same period in the prior year, representing an increase of $57,513, or 5.8%. The modest increase was driven by higher professional and insurance-related costs, partially offset by reductions in software subscription expenses and continued cost optimization initiatives.

Software Subscription

Software subscription expenses decreased significantly to $99,840, compared to $449,845 in the prior-year period, representing a decrease of $350,005, or 77.8%. The reduction primarily was driven by decreased reliance on third-party software platforms, including tools such as Salesforce, and increased utilization of internally developed systems within the Company’s proprietary platform.

Office and General

Office and general expenses increased to $140,244, compared to $82,638 in the prior-year period, representing an increase of $57,606. The increase was driven by higher administrative and operational costs associated with business expansion and enhanced internal processes.

Professional Fees

Professional fees increased significantly to $304,971, compared to $60,688 in the prior-year period, representing an increase of $244,283, or 402.5%. The increase was primarily attributable to higher legal, accounting, and advisory expenses incurred in connection with financing activities, regulatory compliance, and ongoing corporate initiatives.

Dues and Subscriptions

Dues and subscriptions increased to $219,212, compared to $199,336 in the prior-year period, representing an increase of $19,876, or 10.0%. The increase was driven by higher regulatory, listing, and data subscription costs.

Rent

Rent expense increased to $104,973, compared to $85,304 in the prior-year period, representing an increase of $19,669, or 23.1%, reflecting changes in office space utilization and lease arrangements.

Consulting Fees

Consulting fees remained relatively stable at $30,204, compared to $29,604 in the prior-year period, representing a modest increase of $600, or 2.0%, reflecting consistent use of external advisory support.

Travel

Travel expenses increased slightly to $24,541, compared to $23,247 in the prior-year period, representing an increase of $1,294, or 5.6%, reflecting increased business development and operational travel activities.

Donations and Lease Expense

No donation or lease expenses were recorded during the six months ended February 28, 2026, compared to $784 and $1,430, respectively, in the prior-year period. The decrease was driven by the absence of discretionary donations and the expiration of certain lease-related obligations.

Insurance

Insurance expense increased to $128,718, compared to $62,314 in the prior-year period, representing an increase of $66,404, or 106.6%. The increase was primarily driven by higher premiums associated with expanded coverage requirements and the Company’s evolving risk profile.

Overall Commentary

Overall, SG&A expenses increased modestly despite significant changes in cost composition. The Company achieved substantial cost savings in software-related expenses through reduced reliance on third-party platforms, which partially offset increases in professional fees, insurance costs, and general administrative expenses. Management continues to focus on cost discipline while supporting strategic initiatives and compliance requirements.

Liquidity and Capital Resources

Going Concern

The Company has incurred operating losses and has generated negative cash flows from operations. Under applicable accounting standards, these conditions raise substantial doubt about the Company’s ability to continue as a going concern within twelve months from the issuance date of these financial statements.

However, management believes that this assessment does not fully reflect the Company’s current financial position, capital resources, and the impact of actions taken during and subsequent to the reporting period to improve liquidity, strengthen the balance sheet, and enhance financial flexibility.

As of February 28, 2026, the Company had $17.9 million in cash and restricted cash and a positive working capital position of $3.1 million. This represents a significant improvement compared to prior periods and was driven by the successful execution of financing initiatives and capital allocation strategies during the period.

In addition, subsequent to the reporting period, the Company has continued to advance its liquidity management initiatives, including further refinement of its cost structure, disciplined capital allocation, and ongoing evaluation of financing alternatives.

Based on current operating trends, management estimates that existing liquidity provides a meaningful operational runway. This estimate is supported by reduced operating cash burn, improved cost discipline, and the Company’s ability to actively manage discretionary expenditures and capital deployment. This reduction was driven by the Company’s transition to a leaner operating model and represents a structural improvement in cash flow efficiency.

Management believes that its current capital resources, combined with ongoing strategic initiatives—including the expansion of recurring revenue streams, continued cost optimization, and disciplined treasury management—provide a sufficient foundation to support operations and execute its business plan.

Management’s Plans

Management has developed plans intended to improve liquidity and address these uncertainties, including:

	●	Accessing additional capital through its digital asset treasury strategy, including investments in Injective (INJ) and related financing arrangements
	●	Pursuing additional financing and capital-raising activities, including equity and debt financing, as required to support ongoing operations and strategic initiatives
	●	Continuing cost management initiatives, including reductions in payroll, operating expenses, and discretionary spending
	●	Generating additional income streams, including staking rewards from digital assets, and monetization of mortgage data
	●	Implementation of performance-based incentive compensation plans with variable payout structures tied to the achievement of specified thresholds across core operating metrics, including mortgage origination volume, agent network growth, and platform revenue
	●	Enhancing agent productivity through continued development of the Pineapple Plus platform, including improvements to origination workflow tools, deal management systems, and the core brokerage infrastructure used by Pineapple agents to process and submit mortgage transactions
	●	Strengthening agent recruiting and retention through enhanced onboarding processes, structured agent feedback programs, and automation of key engagement workflows to improve the agent experience and reduce attrition across the network.

Uncertainty and Risks

While management believes these plans are reasonable and achievable, there can be no assurance that the Company will be successful in implementing them. The Company’s ability to continue as a going concern is dependent upon:

	●	Its ability to obtain additional financing on acceptable terms
	●	The stabilization or improvement of operating cash flows
	●	Market conditions affecting the value and performance of its digital asset holdings

If the Company is unable to secure adequate funding or achieve its operating objectives, it may be unable to meet its obligations as they become due.

Liquidity Requirements

The Company’s primary liquidity requirements include:

	●	Working capital to support ongoing operations
	●	Capital expenditures related to technology development
	●	Continued investment in its proprietary Pineapple Plus platform
	●	Personnel costs and compliance infrastructure

The Company currently funds these requirements through a combination of:

	●	Cash on hand
	●	Operating cash flows
	●	External financing arrangements

Capital Allocation Framework

The Company follows a disciplined capital allocation framework designed to balance operational needs and strategic investments:

	●	Maintain sufficient liquidity to support core operations
	●	Invest in the core mortgage platform to drive growth and efficiency
	●	Expand data and technology capabilities to support recurring revenue
	●	Allocate excess capital to digital asset treasury activities to enhance yield

This framework is intended to support long-term value creation while maintaining financial flexibility and managing liquidity risk.

The following table summarizes our cash flows from operating, investing and financing activities:

Six months ended	February 28, 2026 ($)			February 28, 2026 ($)			Increase/ (Decrease) ($)
Cash (used) provided in operating activities		(3,762,796	)		(836,228	)		2,926,568
Cash (used) provided by financing activities		38,199,966			1,226,321			36,973,645
Cash (used) provided in investing activities		(19,293,545	)		(539,410	)		(18,754,135	)
Cash at the end of the period		17,895,082			493,607			17,401,475

Net cash flow from (used in) operating activities

For the six months ended:	February 28, 2026			February 28, 2025
	$			$
Cash provided by (used for) the following activities
Operating activities
Net loss for the year		(25,930,939	)		(1,253,990	)
Adjustments for the following non-cash items:
Depreciation of property and equipment		21,555			42,553
Bad debt written off		18,050			-
Staking income		(221,718	)		-
Amortization of intangible assets		386,009			270,073
Depreciation on right of use asset		60,326			117,019
Interest expense on lease liability		20,000			26,824
Derivative liability		18,730			-
Warrants expense		1,325,558			-
Share based compensation		142,000			-
Change in fair value of warrant liability		(1,199,502	)		(35,591	)
Fair value loss on digital assets		23,026,713			-
Foreign exchange gain (loss)		-			4,021
Net changes in non-cash working capital balances:
Trade and other receivables		(139,387	)		(22,557	)
Prepaid expenses and deposits		(136,819	)		(41,552	)
Accounts payable and accrued liabilities		(1,095,043	)		103,551
Deferred government incentive		(48,769	)		33,603
Deferred revenue		(9,560	)		(80,182	)
		(3,762,796	)		(836,228	)

Operating Activities

Net cash used in operating activities for the six months ended February 28, 2026 was $3.8 million, compared to $0.8 million in the prior-year period.

The increase in cash used in operating activities was primarily driven by:

	●	A net loss of $25.9 million, largely attributable to non-cash, market-driven fair value remeasurement of digital asset holdings
	●	Working capital outflows, including:

	○	Decrease in accounts payable and accrued liabilities of $1.1 million
	○	Increases in prepaid expenses and receivables

These were partially offset by significant non-cash adjustments, including:

	●	$23.0 million unrealized loss on digital assets
	●	$1.2 million warrant-related expense
	●	$0.4 million amortization of intangible assets
	●	$0.2 million staking income, which was recognized as non-cash income

Overall, operating cash flows reflect ongoing net losses and working capital requirements, partially offset by non-cash charges.

Investing Activities

Net cash used in investing activities for the six months ended February 28, 2026 was $19.3 million, compared to $0.5 million in the prior-year period.

The increase was primarily attributable to:

	●	Acquisition of digital assets, including investments funded through financing arrangements
	●	Continued investment in technology and platform development

The Company’s investing activities during the period were significantly influenced by its strategic allocation of capital toward digital assets.

Financing Activities

Net cash provided by financing activities for the six months ended February 28, 2026 was $38.2 million, compared to $1.2 million in the prior-year period.

This increase was primarily driven by:

	●	Proceeds from equity financing, including PIPE transactions
	●	Proceeds from loan arrangements, including ELOC facilities

These inflows were partially offset by:

	●	Financing costs
	●	Transaction-related expenditures

Liquidity Position

As of February 28, 2026, the Company had:

●

Cash and restricted cash of $17.9 million, compared to $0.5 million at February 28, 2025

The increase in cash balances was driven by the Company’s financing activities during the period, partially offset by investments in digital assets and operating cash outflows.

Overall Liquidity Assessment

The Company’s liquidity position improved significantly during the six-month period as a result of financing activities. However, the Company continues to generate negative cash flows from operations.

The Company’s ability to meet its obligations and sustain operations is dependent upon:

	●	Continued access to capital markets
	●	Management of operating cash flows
	●	Performance of its digital asset investments and related income streams

Liquidity Runway Analysis

The Company’s liquidity position is supported by cash on hand and access to external financing. As of February 28, 2026, the Company had $17.9 million in cash and restricted cash.

For the six months ended February 28, 2026, net cash used in operating activities was $3.8 million, or an average monthly operating cash outflow of $0.6 million. Based on this historical run rate, existing cash resources would be sufficient to fund operations for 28 to 30 months, assuming no significant changes in operating conditions.

However, the Company’s future liquidity requirements are subject to a number of uncertainties, including:

	●	Variability in operating cash flows and working capital requirements
	●	Ongoing investments in digital assets and technology initiatives
	●	Interest and principal obligations associated with financing arrangements
	●	Market volatility affecting digital asset valuations and related income streams, including staking rewards

Management may adjust its capital allocation strategy, including the pace of digital asset investments and discretionary expenditures, in response to market conditions and liquidity needs.

The Company’s operating cash burn has been significantly reduced as a result of cost optimization initiatives, including workforce realignment and expense rationalization, which are expected to improve cash flow dynamics going forward.

The Company’s ability to maintain sufficient liquidity beyond the current runway is dependent on its ability to:

	●	Generate positive operating cash flows
	●	Access additional financing, if required
	●	Manage costs and capital expenditures

There can be no assurance that additional financing will be available on acceptable terms, or at all.

The following table presents our liquidity (Non-GAAP):

Period Ended	February 28, 2025 ($)		August 31, 2025 ($)
Cash		17,895,082		2,117,371
Trade and other receivables		213,560		92,223
Loan		5,000,000		-
Prepaid expenses and deposit		246,820		110,001
		23,355,462		2,319,595

Current liabilities
Accounts payable and accrued liabilities		1,030,117		2,125,160
Loan payable		18,972,000		-
Deferred revenue		98,992		108,552
Derivative liability		18,730
Loan from directors		-		629,120
Current portion of lease liability		146,296		138,859
		20,266,135		3,001,691

Liquidity and Capital Resources

Current Assets

As of February 28, 2026, the Company’s total current assets were $23.4 million, compared to $2.3 million as of August 31, 2025, representing an increase of $21.0 million.

The increase was primarily driven by:

	●	A significant increase in cash to $17.9 million from $2.1 million, reflecting proceeds from financing activities, including equity issuances and loan arrangements
	●	The recognition of a $5.0 million loan receivable, representing amounts advanced under financing arrangements
	●	Modest increases in trade and other receivables and prepaid expenses and deposits, reflecting normal business activity and timing of payments

Cash

Cash increased to $17.9 million as of February 28, 2026, compared to $2.1 million as of August 31, 2025.

The increase was primarily attributable to:

	●	Proceeds from equity financing, including PIPE transactions
	●	Loan proceeds received during the period

These inflows were partially offset by:

	●	Investments in digital assets
	●	Operating cash outflows

Trade and Other Receivables

Trade and other receivables increased to $213,560, compared to $92,223 at August 31, 2025. The increase was driven by the timing of billings and collections at period end.

Prepaid Expenses and Deposits

Prepaid expenses and deposits increased to $246,820, compared to $110,001 at August 31, 2025. The increase was driven by advance payments for software subscriptions, insurance premiums, and other service contracts.

Loan Receivable

The Company recorded a loan receivable of $5.0 million as of February 28, 2026, which was not present in the prior period. This represents financing arrangements entered into during the period.

Current Liabilities

As of February 28, 2026, total current liabilities were $20.3 million, compared to $3.0 million as of August 31, 2025, representing an increase of $17.3 million.

The increase was primarily driven by:

	●	Recognition of a loan payable of $19.0 million, related to financing arrangements entered into during the period
	●	The recognition of a derivative liability of $18,730

These increases were partially offset by:

	●	A decrease in accounts payable and accrued liabilities to $1.0 million, reflecting timing of vendor payments
	●	Elimination of the loan from directors, which was repaid or settled during the period

Other Current Liabilities

	●	Deferred revenue decreased slightly to $98,992, reflecting the delivery of services during the period
	●	The current portion of lease liabilities increased modestly to $146,296, reflecting scheduled lease payments

Working Capital and Liquidity Position

As of February 28, 2026, the Company reported working capital of $3.1 million, compared to a working capital deficit in the prior period.

The Company’s liquidity position improved significantly during the period as a result of financing activities, including equity issuances and loan proceeds. These inflows strengthened the Company’s cash position and supported its investment and operational activities.

Management continues to monitor working capital levels, cash flows, and financing requirements closely. The Company believes that its current cash resources, together with access to financing arrangements and expected operating cash flows, are sufficient to meet its short-term obligations and support its near-term operating and strategic initiatives.

Outlook

Management believes the Company is entering a transition from a period of capital formation and strategic investment toward one of execution, operating leverage, and earnings quality.

With the majority of recent financing and balance sheet initiatives completed, the Company’s focus is shifting toward delivering consistent operating performance, improving unit economics, and scaling higher-margin and recurring revenue streams.

Key strategic priorities include:

	●	Expanding mortgage origination volume through targeted agent recruitment, improved activation, and increased productivity across the existing agent base
	●	Increasing revenue per transaction through pricing discipline and the expansion of ancillary products and services
	●	Scaling recurring revenue streams, including subscription-based platform offerings and the development of data-driven products and analytics capabilities
	●	Enhancing capital efficiency through disciplined treasury management, including the continued deployment and optimization of the Company’s digital asset treasury strategy
	●	Maintaining cost discipline and driving operating leverage, including ongoing optimization of the Company’s cost structure and workflow efficiency. Management believes that the integration of these initiatives will support a more scalable and higher-margin operating model over time, with improved earnings quality and reduced reliance on purely transactional revenue streams.

While near-term results may be impacted by macroeconomic conditions, including interest rate dynamics and housing market activity, as well as volatility in digital asset markets, management believes these factors do not alter the Company’s long-term strategic direction or underlying operating trajectory.

The Company remains focused on disciplined execution, capital allocation, and the delivery of measurable operating improvements as it progresses through 2026. Management believes that continued execution against these priorities will position the Company to deliver improved financial performance and long-term shareholder value.

Critical Accounting Policies and Significant Judgments and Estimates

This management’s discussion and analysis of the financial condition and results of operations is based on our financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of Revenue and expenses during the reported period. Per U.S. GAAP, we base our estimates on historical experience and various other assumptions we believe to be reasonable under the circumstances. Actual results may differ from these estimates if conditions differ from our assumptions. While our significant accounting policies are more fully described in Note 2 in the “Notes to Financial Statements,” we believe the following accounting policies are critical to making effective judgments and estimates in preparing our financial statements.

Revenue Recognition

The Company has adopted ASC 606, Revenue from Contracts with Customers, which provides a single comprehensive model for revenue recognition. The core principle of the standard is that Revenue should be recognized when goods or services are transferred to customers at an amount that was driven by the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard introduced a new contract- based revenue recognition model with a measurement approach that is based on an allocation of the transaction price. It establishes a five-step model to account for revenue arising from contracts with customers. Under this standard, Revenue is recognized at an amount that was driven by the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The standard requires entities to exercise Judgment, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with customers. Additionally, the standard specifies the accounting for incremental costs of obtaining a contract and the costs directly related to fulfilling a contract.

When the Company transfers goods or services to a customer, Revenue is recognized at an amount that was driven by the consideration expected to be received.

The Company operates an online platform, that enables brokers and agents to efficiently close deals.

The Company’s subsidiary, Pineapple Insurance Inc., generates Revenue by charging premiums for insurance policies and services. Pineapple Insurance is affiliated with a major insurance company, from which it earns commissions for providing services, primarily mortgage insurance. Mortgage insurance is a offered for each mortgage. Pineapple Insurance acts as the agent that supplies insurance services to the consumer and is paid a commission from the premiums collected by the insurance company whose products and services it provides to the end consumer.

Basis of presentation, functional and presentation currency

The Company’s headquarters is in Ontario, Canada, and the functional currency is in Canadian Dollars (CAD) with the presentation currency being US Dollars (USD). The Company’s subsidiaries have a functional currency of CAD and presentation currency of USD which have been applied consistently.

There will be a foreign currency translation undertaken to report under US GAAP which will be the basis of presentation.

Foreign Currency Transactions and Translation

Although the Company conducts substantially all of its operating activities and generates nearly all revenues and expenses in Canadian dollars (“CAD”), it engages in certain financing and vendor transactions that are denominated in U.S. dollars (“USD”). These USD-denominated balances include equity proceeds raised in USD, payments to U.S.-based service providers, and other non-operating expenditures.

Foreign currency transactions are translated into CAD at the exchange rate in effect on the transaction date. Monetary assets and liabilities denominated in USD are remeasured at the closing exchange rate at each reporting date, and the resulting foreign exchange gains or losses are recognized in the consolidated statements of operations.

In addition, because the Company reports its consolidated financial statements in U.S. dollars, CAD-denominated assets, liabilities, revenues, and expenses are translated into USD using appropriate period-end or average exchange rates. These translation adjustments are recorded within other comprehensive income (loss) and do not impact the Company’s underlying cash flows or economic performance.

Lease Accounting

The relevant criteria applicable is ASC 842. We assess at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. We apply a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. We recognize lease liabilities to make lease payments and right-of- use assets representing the right to use the underlying assets.

At the commencement date of the lease, we recognize lease liabilities measured at the present value of lease payments to be made over the lease term. Lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. Lease payments also include the exercise price of a purchase option reasonably certain to be exercised by us and payments of penalties for terminating the lease, if the lease term reflects us exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, we use our incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

Investments

We invested in a commercial mortgage firm, MCommercial, based in Montreal and Toronto, Canada representing 5% of the total issued and outstanding shares. This strategic partnership allows Pineapple residential mortgage agents to have access to a leading commercial mortgage firm and experts, which will expand their product offerings, service levels and corporate Revenue through increased transactions.

The Company entered into a share purchase agreement with 9142-2964 Quebec Inc. pursuant to which the Company acquired five Class A Shares of 7326904 Canada Inc. (dba as Mortgage Alliance Corporation) (“Alliance”), representing 5% of the total issued and outstanding shares of Alliance. Alliance is a mortgage brokerage firm based in Ontario, Canada with locations in Calgary, Vancouver and Halifax.

The total amount of both investments was recorded at fair value, and any impairment loss is recognized in profit and loss account.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

As a smaller reporting company, this disclosure is not required.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of February 28, 2026.

Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were not effective as of February 28, 2026 due to the material weakness in internal control over financial reporting described below.

Management has identified a material weakness in the Company’s internal control over financial reporting related to insufficient segregation of duties within the finance function, primarily due to a limited number of personnel responsible for financial reporting and accounting functions.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s financial statements will not be prevented or detected on a timely basis.

Notwithstanding the material weakness described above, management believes that the condensed interim consolidated financial statements included in this Quarterly Report fairly present, in all material respects, the Company’s financial position, results of operations, and cash flows in accordance with U.S. GAAP.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1 Legal Proceedings.

To our best knowledge, we are currently not a party to any legal proceedings that, individually or in the aggregate, are deemed to be material to our financial condition or results of operations.

Item 1A Risk Factors.

Smaller reporting companies are not required to provide the information required by this item.

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds.

During the six months ended February 28, 2026, the Company issued common shares and warrants in connection with a private placement transaction pursuant to a Securities Purchase Agreement dated September 1, 2025.

Upon satisfaction of the escrow release conditions and effectiveness of the registration statement, the subscription receipts were exchanged into equity securities on January 6, 2026.

The Company issued:

	●	5,776,304 common shares for aggregate gross cash proceeds of $21,949,955;
	●	18,866,396 common shares in exchange for digital assets with a fair value of $31,323,740 at the date of issuance; and
	●	1,039,346 warrants exercisable at $3.80 per share with a contractual term of five years.

In addition, during the period:

●

5,010 warrants were exercised, resulting in the issuance of 5,010 common shares, including:

	●	5,000 warrants exercised at an exercise price of $3.00; and
	●	10 warrants exercised at an exercise price of $3.90.

The securities described above were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D, as transactions not involving a public offering. The investors were accredited investors, and no general solicitation was conducted.

Item 3 Defaults Upon Senior Securities.

None.

Item 4 Mine Safety Disclosures.

Not applicable.

Item 5 Other Information.

None.

Item 6. EXHIBITS

Exhibit No.		Description
31.1 *		Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a).

31.2 *		Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a).

32.1 *		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 *		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS *		Inline XBRL Instance Document.

101.SCH* *		Inline XBRL Taxonomy Extension Schema Document.

101.CAL* *		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF* *		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB* *		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE *		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended February 28, 2026, formatted in Inline XBRL (included in Exhibit 101).

*	Filed herewith.

SIGNATURES

	PINEAPPLE FINANCIAL INC.

Date: April 13, 2026	By:	/s/ Shubha Dasgupta
		Shubha Dasgupta
		Chief Executive Officer

Date: April 13, 2026	By:	/s/ Sarfraz Habib
		Sarfraz Habib
		Chief Financial Officer

Filing Compare · Pineapple Financial Inc.