21. Risk management arising from financial instruments

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, trade and other receivables, and loan receivables.

The Company manages cash-related credit risk by maintaining deposits with major financial institutions and by monitoring the creditworthiness of its counterparties. Credit risk associated with trade receivables is managed through ongoing monitoring of customer creditworthiness, payment history, and aging profiles. Trade receivables are generally short-term in nature and are typically 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.

Credit risk associated with loan receivables is managed through ongoing evaluation of the creditworthiness and financial condition of counterparties, monitoring compliance with contractual terms, and, where applicable, consideration of collateral and other credit enhancements supporting the underlying arrangements.

In accordance with ASC 326, Financial Instruments—Credit Losses, the Company applies a lifetime expected credit loss (“ECL”) model to trade receivables and other financial assets measured at amortized cost, including loan receivables. Expected credit losses are estimated using a combination of historical loss experience, aging analysis where applicable, current economic conditions, forward-looking information, and specific assessments of individual counterparties. Management also considers the existence of collateral, guarantees, and other relevant facts and circumstances when evaluating expected credit losses on loan receivables. Based on its assessment as of May 31, 2026, the Company concluded that no material allowance for expected credit losses was required.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For the period ended May 31, 2026

(Expressed in US Dollars)

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

May 31, 2026

 Schedule of accounts receivable aging

August 31, 2025

The maximum exposure to credit risk as of May 31, 2026 is the carrying amount of cash and trade receivables on the consolidated balance sheet. Management believes overall credit risk remains moderate and manageable, given the Company’s diversified customer base and the short-term nature of its receivables.

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.

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 Note 1.

As at May 31, 2026, the Company’s contractual payment obligations are as follows:

 Schedule of contractual payment obligations

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

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For the period ended May 31, 2026

(Expressed in US Dollars)

21. Risk management arising from financial instruments (Continued)

As of May 31, 2026, substantially all of the Company’s digital asset holdings consisted of Injective (“INJ”) tokens. Accordingly, the Company is exposed to concentration risk arising from changes in the market price, liquidity and overall adoption of INJ. A significant decline in the market value of INJ could materially affect the Company’s financial position, results of operations and liquidity.

The Company also generates staking income from its INJ holdings. Accordingly, changes in staking reward rates, validator performance, network participation, protocol economics or other blockchain-related factors may affect the amount of staking income recognized by the Company.

In addition, the Company’s Digital Asset Treasury strategy utilizes a limited number of counterparties for financing, custody, trading and treasury management activities, including FalconX, BitGo and Monarq Capital. The Company’s financing arrangements are concentrated with FalconX, while substantially all digital assets are maintained with institutional custodians supporting those arrangements. The inability of any significant counterparty to perform its contractual obligations, operational failures, cybersecurity incidents or other disruptions affecting these counterparties could adversely affect the Company’s ability to access its assets, satisfy financing obligations or conduct treasury activities.

Management monitors counterparty credit quality, collateral levels, custody arrangements and liquidity on an ongoing basis to manage these concentration risks.

The Company’s objective in managing capital is to preserve financial flexibility, maintain sufficient liquidity to support its operating activities, and optimize long-term shareholder value. Capital consists primarily of shareholders’ equity together with debt and other financing arrangements used to support the Company’s operations and strategic capital allocation initiatives.

During the nine months ended May 31, 2026, the Company expanded its capital management framework in connection with its digital asset treasury strategy. The Company adopted a Treasury Reserve Policy, approved by the Board of Directors, establishing governance over treasury reserve assets, capital deployment, liquidity management, financing activities, custody arrangements, counterparty selection, and risk management. Oversight of these activities is provided by management together with the Special Advisory Committee (“SAC”) of the Board of Directors.

Management continuously monitors the Company’s capital structure, liquidity position, working capital requirements, debt obligations, collateral maintenance requirements, and market conditions to maintain an appropriate balance between financial flexibility and prudent risk management. Capital allocation decisions are evaluated in light of operating requirements, financing opportunities, digital asset market conditions, and the Company’s long-term strategic objectives.

The Company is not subject to externally imposed regulatory capital requirements. Management and the Board of Directors review the Company’s capital management objectives, policies and processes on an ongoing basis and modify them, as appropriate, in response to changes in the Company’s business, financing arrangements and market environment.

The Company’s mortgage brokerage and insurance operations primarily generate revenues and incur expenses in Canadian dollars (“CAD”), which is the functional currency of those operations. Accordingly, the day-to-day foreign currency exposure of the mortgage operations is generally limited. The functional currency of the Company’s digital asset treasury activities is the U.S. dollar (“USD”), as those activities are primarily managed, financed and measured in USD.

The Company may incur foreign currency risk from transactions denominated in currencies other than the applicable functional currency, including balances held in foreign-currency bank accounts and certain vendor payments. These transactions may give rise to realized and unrealized foreign exchange gains or losses, which are recognized in the condensed interim consolidated statements of operations and comprehensive loss.

In addition, the financial results of operations with a CAD functional currency are translated into USD, the Company’s reporting currency, for SEC reporting purposes. Changes in the CAD-USD exchange rate may therefore result in period-to-period fluctuations in reported assets, liabilities, revenues and expenses. Resulting foreign currency translation adjustments are recognized in accumulated other comprehensive income or loss and do not directly affect the Company’s underlying cash flows.

The Company does not currently utilize foreign exchange derivative instruments to manage its foreign currency exposure.