Loans payable, collateral and loans receivable |
9 Months Ended | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2026 | ||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||
| Loans payable, collateral and loans receivable | 12. Loans payable, collateral and loans receivable
FalconX Credit Facility
On September 23, 2025, the Company entered into a Master Lender Agreement with FalconX, pursuant to which individual loans are documented through separate loan term sheets establishing the applicable principal amount, interest rate, maturity date, collateral requirements and other material terms.
During the nine months ended May 31, 2026, the Company entered into a series of amended and restated loan term sheets. As of May 31, 2026, the financing arrangement provided for a $20.0 million fixed-term loan bearing interest at 8.25% per annum and maturing on January 16, 2027. As of May 31, 2026, the Company had $ outstanding under the arrangement, which is presented within Loans Payable in the condensed consolidated balance sheets. During the nine months ended May 31, 2026, the Company recognized $1,026,187 of interest expense related to the financing arrangement.
The Company’s obligations are secured by substantially all of its INJ holdings together with not less than $5.0 million of cash and/or U.S. dollar-denominated stablecoin collateral. The collateral is subject to account control arrangements in favor of FalconX, including custodial account control agreements over the pledged INJ and deposit account control agreements over specified cash collateral accounts.
Subsequent to May 31, 2026, on June 2, 2026, the Company entered into a Fourth Amended and Restated Loan Term Sheet increasing the principal amount of the financing arrangement from $20.0 million to $24.0 million.
Injective Foundation Collateral Arrangement
Prior to the completion of the Company’s private placement, the Injective Foundation posted collateral on the Company’s behalf in support of the FalconX financing arrangement. Certain collateral remained in place following the private placement and continued to support the financing arrangement. As of May 31, 2026, the Company recognized a corresponding $2,002,619 payable to the Injective Foundation within Loans Payable and a corresponding $2,002,619 Collateral-Related Loan Receivable within Loans Receivable. The arrangement is not governed by a written agreement and does not have stated repayment terms, maturity date, or interest provisions. The balance is unsecured and non-interest bearing. These balances are presented gross as they represent separate contractual rights and obligations. Refer to the Loans Receivable section of this note for additional information regarding the Collateral-Related Loan Receivable.
Collateral
The FalconX financing arrangement is secured by certain of the Company’s digital assets together with cash and U.S. dollar-denominated stablecoin collateral maintained pursuant to the financing arrangements. Although pledged as collateral, the Company retains ownership of these assets and continues to recognize them in the condensed consolidated balance sheets because the transfers do not qualify for derecognition.
As of May 31, 2026, approximately 7,303,725 INJ tokens, with a carrying amount (fair value) of $47,719,617, were pledged as collateral and are included within digital assets in the condensed consolidated balance sheets. In addition, approximately $5,424,320 of cash was pledged under the financing arrangements and is presented within Restricted Cash as described in Note 13.
In addition to the pledged digital assets and restricted cash described above, the Company’s collateral arrangements include a $2.0 million Collateral-Related Loan Receivable arising from the Injective Foundation Collateral Arrangement as described above. Refer to the Loans Receivable section of this note for additional information regarding these collateral-related receivables.
The pledged digital assets and restricted cash serve solely as collateral supporting the Company’s obligations under the FalconX financing arrangement and remain subject to the collateral maintenance requirements and other provisions of the applicable financing agreements. Under the financing arrangements, the Company is required to maintain an initial collateral ratio of at least 160% of the outstanding borrowings. If the collateral ratio declines below 135%, the Company may be required to post additional eligible collateral or repay a portion of the outstanding indebtedness to restore compliance. If the collateral ratio declines below 120% and is not timely cured, the lender has customary rights to liquidate pledged collateral in accordance with the financing agreements. Subject to satisfying those requirements, the Company may substitute or withdraw pledged collateral in accordance with the terms of the financing arrangements.
Loans Receivable
As of May 31, 2026, the Company had loans receivable totaling $12,002,619, consisting of:
The FalconX loan receivable represents a fixed-term loan bearing interest at 8.0% per annum. During the three months ended May 31, 2026, the contractual maturity was extended from April 28, 2026 to July 29, 2026.
The treasury placement arrangements were entered into pursuant to the Company’s Treasury Reserve Policy under a Master Lender Agreement and related transaction term sheets. As of May 31, 2026, the outstanding principal balance was $5,000,000. The arrangements bear interest at 9.75% per annum, mature on January 15, 2027, may be repaid in U.S. dollars, U.S. dollar-denominated stablecoins or INJ tokens, and are supported by a corporate guarantee from an affiliated entity.
The Collateral-Related Loan Receivable represents an open-term loan of 2,003,183 USD Coin (“USDC”), a U.S. dollar-denominated stablecoin, advanced to FalconX Charlie, Inc. in connection with the Company’s financing and collateral arrangements. The loan bears interest at 7.25% per annum, is unsecured, and is recallable by the Company upon three business days’ notice. A corresponding amount is recognized within Loans Payable, representing the Company’s obligation associated with collateral previously posted on its behalf by the Injective Foundation in support of the FalconX financing arrangements. Refer to the Collateral section of this note for additional information regarding these arrangements.
During the nine months ended May 31, 2026, the Company recognized $369,539 of interest income related to its loan receivables. Management evaluated all loan receivables for expected credit losses in accordance with ASC 326 and concluded that no allowance for expected credit losses was required as of May 31, 2026. All loan receivables represent related-party arrangements. Refer to Note 11 for additional information regarding related-party transactions.
Pineapple Financial Inc. Notes to the Condensed Interim Consolidated Financial Statements - Unaudited For the period ended May 31, 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 financing arrangement are supported by a guarantee provided by the Injective Foundation and are secured by pledged digital assets, restricted cash and other collateral maintained pursuant to the financing agreements. Pursuant to the financing agreements, FalconX has been granted a security interest in the pledged collateral, together with customary account control and custodial rights over the designated collateral accounts. The Injective Foundation guarantee unconditionally guarantees the Company’s payment and performance obligations under the financing arrangements, subject to the terms of the applicable guarantee agreement.
As described in the Collateral section of this note, as of May 31, 2026 the Company had approximately 7,303,725 INJ tokens, with an aggregate carrying value of $47.7 million, and approximately $5.4 million of restricted cash pledged in support of the financing arrangements. The financing arrangements are subject to ongoing collateral maintenance requirements, including minimum collateral ratios, and may require the Company to post additional eligible collateral if the applicable thresholds are not maintained.
The pledged collateral remains recognized in the Company’s condensed consolidated balance sheets because the Company retains ownership of the underlying assets, subject to the lender’s security interests and customary enforcement rights upon an event of default. As of May 31, 2026, the Company was in compliance with all material financing covenants and collateral maintenance requirements.
Refer to Note 5 – Digital assets for additional information regarding the Company’s digital asset holdings and Note 11 – Related Party Transactions and Balances for additional information regarding related-party treasury placement arrangements.
|
|||||||||||||||||||||||||