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