| Related party transactions and balances |
11.
Related party transactions and balances
| |
1. |
Following
the completion of the Company’s private placement on January 6, 2026, the Injective Foundation became one of the Company’s largest
shareholders and is considered a related party in accordance with ASC 850, Related Party Disclosures.
The
Injective Foundation forms part of the broader ecosystem supporting the Company’s Digital Asset Treasury strategy and, as a significant
shareholder, may have the ability to exert significant influence over the Company’s strategic direction and financing initiatives. In
connection with certain financing arrangements, the Injective Foundation has also provided a guarantee supporting certain of the Company’s
obligations. Refer to Note 12 for additional information.
The
Company has also entered into financing, treasury placement and collateral arrangements with other related parties in the ordinary course
of implementing its Digital Asset Treasury strategy. The Company’s significant related parties include:
|
| ● | the
Injective Foundation, by virtue of its ownership interest in the Company; |
| ● | FalconX Charlie Inc. (“FalconX” which, as used herein, includes FalconX Charlie Inc., FalconX
Bravo, Inc., and certain other FalconX-affiliated entities under common ownership and control with entities that hold a significant
ownership interest in the Company), which serve as financing, treasury and derivative counterparties of the Company; |
| ● | affiliated
treasury placement counterparties, including affiliates of Innovating Capital Management,
LLC, which serves as an approved advisor under the Company’s Treasury Reserve Policy (the “Treasury Reserve Policy”), a Board-approved governance framework governing
the Company’s Digital Asset Treasury strategy and related treasury management activities; |
| ● | certain
directors and executive officers of the Company. |
As of May 31, 2026, balances
with related parties consisted of:
Schedule
of related parties balance
| | |
May 31, 2026 | |
| Loan receivables | |
$ | 12,002,619 | |
| Loans payable | |
$ | 21,442,877 | |
| Restricted cash | |
$ | 5,424,320 | |
Refer to Note 12 for additional
information regarding the Company’s financing, treasury placement and collateral arrangements.
| |
2. |
Compensation
of key management personnel includes the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer: |
Schedule of key management personnel related party transactions
| | |
May
31, 2026 | | |
May
31, 2025 | |
| | |
$ | | |
$ | |
| Salaries, Wages and benefits | |
| 395,669 | | |
| 382,151 | |
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 $657,690 to support working capital requirements.
The advances were unsecured, bore interest at 12% per annum, and were repayable on demand.
As
of May 31, 2026, the outstanding principal balance of these advances, together with all accrued interest, had been fully repaid. The
repayment was funded from proceeds received in connection with the Company’s private placement completed on January 6, 2026.
Pineapple
Financial Inc.
Notes
to the Condensed Interim Consolidated Financial Statements - Unaudited
For
the period ended May 31, 2026
(Expressed
in US Dollars)
|