1. Description of business

Pineapple Financial Inc. (the” Company”) is a leader in the Canadian mortgage industry, breaking the mold by focusing on both the long-term success of agents and brokerages, as well as the overall experience of homeowners. With over 600 brokers within the network, the Company utilizes cutting-edge cloud-based tools and AI-driven systems to enable its brokers to help Canadians realize their ultimate dream, owning a home.

The Company was incorporated in 2006 under the Ontario Business Corporations Act. Its head office is located at 200-111 Gordon Baker Road, Toronto, Ontario, M2H 3R1, Canada. The Company completed its Initial Public Offering on October 31, 2023, raising gross proceeds of $3,500,000, and commenced trading on the NYSE American under the ticker symbol “PAPL” on November 1, 2023.

Subsequently, the Company received a notice of delisting from the NYSE American due to non-compliance with certain continued listing standards. The Company is currently in the appeal process regarding this delisting. In the interim, the Company’s common shares commenced trading on the OTC Markets under the symbol “PAPLF” (OTCPK).

The Company continues to actively pursue its appeal and is evaluating its options with respect to relisting on a national securities exchange.

Impact from the global inflationary pressures leading to higher interest rates

During the first quarter of 2025, inflationary pressures were eased to a greater extent, and central banks worldwide started decreasing their interest rates. However, interest rates are still high compared to the year 2022. The real estate market has started showing some improvement, but inflation is down from the year 2022 but still not as per target. This led to uncertainty around the business. The Company determined that there were no material expectations of increased credit losses and no material indicators of impairment of long-term assets.

Economic and Trade Policy Uncertainty

Company continues to monitor the potential impact of evolving trade policies, including the threat of additional tariffs imposed by the United States. While no specific tariffs have been implemented during the reporting period that materially affect the Company’s operations, the potential for future changes in cross-border trade arrangements and import/export duties contributes to broader economic uncertainty. Management has considered these risks in its forward-looking assessments and determined that, as of the reporting date, there are no material adverse effects on the Company’s financial position, results of operations, or estimates related to credit losses or asset impairments.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements for period ended May 31, 2025 - Unaudited

(Expressed in US Dollars)

1. Description of business (continued from previous page)

Going Concern

The Company continues to focus its efforts predominantly on research and development activities. During this process, it has incurred significant operating losses, a trend expected to persist for the foreseeable future. As of May 31, 2025, the Company reported an accumulated deficit of $11,572,086 compared to $9,757,974 as of August 31, 2024. Negative cash flows from operating activities amounted to $439,198 during the nine months ended May 31, 2025, as compared to $1,443,610 in the prior corresponding period.

To sustain its operations during the nine-month period end May 31, 2025, the Company raised grossly $2.497 million issuance of common shares, warrants and pre-funded warrants. In addition, company also borrowed short term loan $633,259 from directors to meet the working capital requirements. In addition, the Company maintains Equity Line of Credit of up to $15.00 million, which it intends to draw upon once its securities are registered with the Ontario Securities Commission. It is also exploring additional capital and financing sources such as director’s loan while managing existing working capital resources. However, the Company’s ability to continue as a going concern is subject to its capacity to achieve future profitability and secure the necessary funding to meet obligations as they arise. The uncertainty surrounding its ability to raise financial capital and generate profitable operations raises substantial doubt about its ability to continue as a going concern.

These condensed interim consolidated financial statements do not include adjustments that might be necessary should the Company be unable to continue as a going concern.

The consolidated financial statements were authorized for issue by the Board of Directors on July 14, 2025