3. Significant accounting judgments, estimates and assumptions

The preparation of condensed interim consolidated financial statements requires the directors and management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and revenue and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical estimates and judgments applied by management that most significantly affect the Company’s condensed interim consolidated financial statements. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Digital assets - Fair Value Measurement and Classification

The Company’s digital assets are measured at fair value at each reporting date in accordance with ASC 350-60, Intangibles - Goodwill and Other-digital assets, and ASC 820, Fair Value Measurement. Fair value is determined based on quoted prices in active markets for identical assets, when available. Such measurements are classified within Level 1 of the fair value hierarchy.

The determination of fair value requires management to identify the principal market, or in the absence of a principal market, the most advantageous market, for each crypto asset at the measurement date. This determination involves judgment, including consideration of the markets accessible to the Company, market activity, trading volume, liquidity and the reliability of available pricing information. Although the Company uses observable market prices when available, crypto asset prices may vary across exchanges or pricing sources, and differences in market liquidity, transaction timing and market access could affect the fair value measurement.

The classification of digital assets as current or non-current requires management judgment based on the Company’s intended use of the assets, expected holding period, liquidity needs and the extent to which the assets are available for use in current operations or settlement of current obligations.

Management also applies judgment in determining when the Company obtains control of digital assets, including staking rewards. Control is generally obtained when the Company has the ability to direct the use of, and obtain substantially all of the remaining economic benefits from, the asset. The timing of control may depend on the terms of the applicable custody, wallet, exchange, staking or protocol arrangement, including whether reward tokens have been received, are claimable, or remain subject to substantive restrictions.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For the period ended May 31, 2026

(Expressed in US Dollars)

3. Significant accounting judgments, estimates and assumptions (continued from previous page)

Expected credit losses (ECL)

The Company applies the expected credit loss model to financial assets measured at amortized cost, including accounts receivable and loans receivable, in accordance with ASC 326. Determining the allowance for expected credit losses requires management judgment in assessing historical collection trends, counterparty creditworthiness, current economic conditions and forward-looking information. Because these factors may change over time, the allowance involves a degree of estimation uncertainty, and actual credit losses may differ from management’s estimates.

Warrant liability

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480 and ASC 815. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the condensed interim consolidated statements of operations and comprehensive loss.

Certain warrants issued by the Company do not meet the criteria for equity classification under ASC 815 and are therefore accounted for as liabilities. These warrants are initially recognized at fair value on the date of issuance and are subsequently remeasured at fair value at each reporting date, with changes recognized in the condensed interim consolidated statements of operations and comprehensive loss.

Pineapple Financial Inc.

Notes to the Condensed Interim Consolidated Financial Statements - Unaudited

For the period ended May 31, 2026

(Expressed in US Dollars)

3. Significant accounting judgments, estimates and assumptions (continued from previous page)

Derivative financial instrument

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”). For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at fair value on the date of issuance and subsequently remeasured at fair value at each reporting date, with changes in the fair value reported in the condensed interim consolidated statements of operations and comprehensive loss. For derivative instruments that are classified as equity, the derivative instruments are initially measured at fair value (or allocated value), and subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity.

Going concern

The interim 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 ordinary course of business. The carrying values of the Company’s assets, including property and equipment and intangible assets, and the related depreciation and amortization are based on management’s assessment of their estimated useful lives and recoverability, which assume that the Company will continue as a going concern.

Should the Company be unable to continue as a going concern, the carrying values of non-current assets may not be recoverable, and adjustments could be required to reduce the carrying amounts of such assets, revise their estimated useful lives, or recognize impairment losses, and to reclassify certain assets and liabilities to current. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty, as management has concluded that the going-concern basis of accounting remains appropriate.