1. Description of business

Pineapple Financial Inc., (“the Company”) was incorporated in 2006, under the Ontario Business Corporations Act. Later the company was registered under Canadian Business Corp. The Company’s head office is located at 200-111 Gordon Baker Road, Toronto, Ontario, M2H 3R1 Canada and its securities are publicly listed on the New York Stock Exchange American (NYSE American) under ticker “PAPL”.

The Company operates through two reportable operating segments: Mortgage Operations and Digital Asset Operations.

The Mortgage Operations segment provides mortgage brokerage and related technology-enabled services in Canada, including mortgage origination support, subscription-based software and related ancillary services.

During fiscal 2026, the Company expanded its business to include a Digital Asset Treasury strategy, which is reported as the Digital Asset Operations segment. The Digital Asset Operations segment includes the acquisition, custody, financing, staking and management of digital assets, primarily Injective (“INJ”) tokens. The Company recognizes staking income from eligible digital asset holdings and measures qualifying digital assets at fair value in accordance with U.S. GAAP.

The Company’s consolidated financial statements include the accounts of Pineapple Financial Inc. and its wholly owned subsidiaries, including Pineapple Insurance Inc. and Pineapple National Inc. All significant intercompany balances and transactions have been eliminated on consolidation.

Going Concern

The accompanying condensed interim consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business.

As of May 31, 2026, the Company had an accumulated deficit of $14.7 million and incurred a net loss of $1.3 million during the nine months then ended. The Company also used $4.6 million of cash in operating activities during the nine-month period ended May 31, 2026. Although a significant portion of the operating cash outflows related to non-recurring financing activities associated with the Company’s private placement and Digital Asset Treasury strategy, these conditions indicate that the Company has not yet consistently generated sufficient cash flows from operations to fund its activities.

These conditions, including the Company’s accumulated deficit, history of operating losses, and negative operating cash flows, raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these financial statements are issued.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For the period ended May 31, 2026

(Expressed in US Dollars)

1. Description of business (continued from previous page)

Management has implemented and continues to pursue the following initiatives to improve liquidity and support ongoing operations:

Management has implemented and continues to pursue plans intended to improve liquidity and support ongoing operations, including:

Management believes that these plans, together with the Company’s existing cash and restricted cash balances of approximately $10.5 million and access to financing arrangements, provide sufficient liquidity to fund operations and meet obligations as they become due for at least the next twelve months and a reasonable basis for continuing operations. However, there can be no assurance that these plans will be successfully executed. Accordingly, substantial doubt about the Company’s ability to continue as a going concern remains.

Impact of Macroeconomic Conditions, Interest Rates and Digital Asset Market Conditions

The Company’s operations are affected by general economic conditions, including changes in interest rates and conditions affecting the Canadian mortgage market. In addition, the Company holds digital assets, primarily Injective (“INJ”) tokens, the value of which is subject to market volatility. Changes in digital asset prices may result in significant fluctuations in the Company’s results of operations due to the fair value measurement of its crypto assets under U.S. GAAP.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For the period ended May 31, 2026

(Expressed in US Dollars)

1. Description of business (continued from previous page)