Cover
Cover - USD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Dec. 11, 2023 | May 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Aug. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity File Number | 001-41738 | ||
Entity Registrant Name | PINEAPPLE FINANCIAL INC. | ||
Entity Central Index Key | 0001938109 | ||
Entity Tax Identification Number | 00-0000000 | ||
Entity Incorporation, State or Country Code | Z4 | ||
Entity Address, Address Line One | Unit 200 | ||
Entity Address, Address Line Two | 111 Gordon Baker Road | ||
Entity Address, City or Town | North York | ||
Entity Address, State or Province | ON | ||
Entity Address, Postal Zip Code | M2H 3R1 | ||
City Area Code | (416) | ||
Local Phone Number | 669-2046 | ||
Title of 12(b) Security | Common Shares, no par value $0.0001 | ||
Trading Symbol | PAPL | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Elected Not To Use the Extended Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 7,181,978 | ||
Documents Incorporated by Reference [Text Block] | None. | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Name | MNP LLP | ||
Auditor Firm ID | 1930 | ||
Auditor Location | Mississauga, Canada |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Current assets | ||
Cash | $ 720,365 | $ 3,896,839 |
Trade and other receivables | 758,988 | 33,119 |
Prepaid expenses and deposits | 218,150 | 483,695 |
Income tax receivable | 71,078 | |
Total current assets | 1,697,503 | 4,484,731 |
Investments | 10,013 | 38,211 |
Right-of-use asset | 960,377 | 954,091 |
Property and equipment | 242,091 | 247,665 |
Intangible assets | 1,718,954 | 702,388 |
Total Assets | 4,628,938 | 6,427,086 |
Current liabilities | ||
Accounts payable and accrued liabilities | 605,319 | 780,113 |
Loan | 430,098 | |
Current portion of lease liability | 138,372 | 2,024 |
Total current liabilities | 1,173,789 | 782,137 |
Deferred government grant | 699,627 | |
Lease liability | 969,589 | 1,018,561 |
Total liabilities | 2,843,005 | 1,800,698 |
Shareholders’ Equity | ||
Common shares, no par value; unlimited authorized; 6,306,979 issued and outstanding as at August 31, 2023 and 2022 | 4,903,031 | 4,903,031 |
Additional paid-in capital | 2,955,944 | 2,922,853 |
Accumulated other comprehensive loss | (417,727) | (353,218) |
Accumulated deficit | (5,655,315) | (2,846,278) |
Total stockholders’ equity | 1,785,933 | 4,626,388 |
TOTAL LIABILITIES AND STOCKHOLDERS’ | $ 4,628,938 | $ 6,427,086 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued | 6,306,979 | 6,306,979 |
Common stock, shares outstanding | 6,306,979 | 6,306,979 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Income Statement [Abstract] | ||
Net Revenue | $ 2,502,264 | $ 3,600,851 |
Expenses | ||
Selling, general and administrative | 3,014,945 | 2,977,277 |
Salaries, wages and benefits | 2,330,127 | 2,360,344 |
Interest expense and bank charges | 56,316 | 94,202 |
Depreciation | 441,159 | 255,871 |
Share-based compensation | 33,091 | 723,217 |
Government based incentive | (591,480) | |
Total expenses | 5,284,158 | 6,410,911 |
Loss from operations | ||
Writedown of investment | (27,143) | |
Loss before income taxes | (2,809,037) | (2,810,061) |
Income taxes (recovery) expense | ||
Net loss | (2,809,037) | (2,810,061) |
Foreign currency translation adjustment | (64,509) | (205,223) |
Net loss and comprehensive loss | $ (2,873,546) | $ (3,015,284) |
Loss per share - basic | $ (0.45) | $ (0.45) |
Loss per share - diluted | $ (0.45) | $ (0.45) |
Weighted average number of common shares outstanding - basic | 6,306,979 | 6,306,979 |
Weighted average number of common shares outstanding - diluted | 6,306,979 | 6,306,979 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance at Aug. 31, 2021 | $ 4,903,031 | $ 2,199,636 | $ (147,995) | $ (36,217) | $ 6,918,455 |
Share-based compensation | 723,217 | 723,217 | |||
Foreign exchange translation | (205,223) | (205,223) | |||
Net Loss | (2,810,061) | (2,810,061) | |||
Balance at Aug. 31, 2022 | 4,903,031 | 2,922,853 | (353,218) | (2,846,278) | 4,626,388 |
Share-based compensation | 33,091 | 33,091 | |||
Foreign exchange translation | (64,509) | (64,509) | |||
Net Loss | (2,809,037) | (2,809,037) | |||
Balance at Aug. 31, 2023 | $ 4,903,031 | $ 2,955,944 | $ (417,727) | $ (5,655,315) | $ 1,785,933 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||
Aug. 31, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Operating activities | ||||
Net (loss) and comprehensive (loss) | $ (2,809,037) | $ (2,810,061) | ||
Adjustments for the following non-cash items: | ||||
Depreciation of property and equipment | 67,674 | 42,218 | ||
Depreciation of intangible assets | 265,150 | 79,489 | ||
Depreciation on right of use asset | 108,335 | 90,049 | ||
Interest expense on lease liability | 56,316 | 32,017 | ||
Share-based compensation | $ 637,517 | 33,091 | 723,217 | $ 567,938 |
Writedown of investment | 27,143 | |||
Net changes in non-cash working capital balances: | ||||
Trade and other receivables | (26,242) | (32,284) | ||
Prepaid expenses and deposits | 265,545 | (336,360) | ||
Accounts payable and accrued liabilities | (174,795) | 382,294 | ||
Income taxes receivable | 70,715 | (5,488) | ||
Net cash used in operating activities | (2,116,105) | (1,834,909) | ||
Financing activities | ||||
Issuance costs paid in connection with the private Proceeds from Loan | 430,098 | |||
Lease payments | (81,090) | (61,470) | ||
Net cash provided by financing activity | 349,008 | (61,470) | ||
Investing activities | ||||
Investments | ||||
Additions to intangible assets | (1,300,225) | (803,610) | ||
Additions to property and equipment | (62,073) | (249,322) | ||
Net cash used in investing activity | (1,362,298) | (1,052,932) | ||
Net change in cash | (3,129,395) | (2,949,311) | ||
Effect of changes in foreign exchange rates | (47,079) | (165,386) | ||
Cash, beginning of year | 3,896,839 | 7,011,535 | ||
Cash, end of year | $ 7,011,535 | 720,365 | 3,896,839 | $ 7,011,535 |
Supplementary cash flow information: | ||||
Interest paid | ||||
Income taxes paid |
Description of business
Description of business | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Description of business | 1. Description of business Pineapple Financial Inc. (the” Company”) is a leader in the Canadian mortgage industry, breaking the mould by focusing on both the long-term success of agents and brokerages, as well as the overall experience of homeowners. With 600 brokers within the network, the Company utilizes cutting-edge cloud-based tools and AI-driven systems to enable its brokers to help Canadians realize their ultimate dream, owning a home. The Company was incorporated in 2006, under the Ontario Business Corporations Act. 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 (NYSEAmerican) under ticker “PAPL”. The Company completed an Initial Public Offering on October 31, 2023 for gross proceeds of $ 3,220,000 Impact from the global inflationary pressures leading to higher interest rates During the fiscal year, due to inflationary pressures that were felt around the globe, central banks all over the world increased interest rates steadily to reduce these pressures. The impact on the real estate market has been to reduce the price wars, bidding, and control over the runaway prices. This has led to modifications in all businesses associated with real estate including the Company. With the interest rates increases which reduces prices has led to reduced volume for the Company, seasonality kicked in which is the increase in financing that is experienced from March to October in Canada has offset the interest rates increase paradigm. It is unknown how long the increased interest rates will last. The Company determined that there were no material expectations of increased credit losses, and no material indicators of impairment of long-term assets. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 2. Significant accounting policies Statement of compliance These consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”). The financial statements were authorized for issue by the Board of Directors on December 14, 2023. Basis of preparation, functional and presentation currency The financial statements have been prepared in accordance with US GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business on the historical cost basis except for certain financial instruments that are measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. All financial information is in US Dollars (“USD”) as the Company’s presentation currency and transactions are conducted in the functional currency of Canadian dollars (“CAD”). Adjustment for Reverse Stock Split In July 2023, the Board approved a 1-for-3.9 reverse stock split Operating segments The Company determines its reporting units in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 280, Segment Reporting. The Company evaluates a reporting unit by first identifying its operating segments under ASC 280. The Company operates as one operating segment which is reported in a manner consistent with the internal reporting provided to the chief operating decision-makers. The chief operating decision-makers are responsible for the allocation of resources and assessing the performance of the operating segment and have been identified as the CEO and CFO of the Company. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Basis of consolidation The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiary, Pineapple Insurance Inc and Pineapple National Inc. All transactions with the subsidiary and any intercompany balances, gains or losses have been eliminated upon consolidation. The subsidiary has a USD presentation currency, and the functional currency is in CAD, and accounting policies have been applied consistently to the subsidiary. ASC 842 Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, less any lease incentives received. The right-of-use assets are depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. In addition, the right-of-use asset can be periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The Company recognized a lease liability and right-of-use asset for most leases and applied ASC 842. The lease liability was measured at the present value of the remaining lease payments, discounted using the Company’s estimated incremental borrowing rate at the date of initial application, estimated to be 6 Financial instruments The following table shows the classification categories under US GAAP ASC 825 for each class of the Company’s financial assets and financial liabilities. Asset / liability: Classification: Cash FVTPL Trade and other receivables Amortized cost Investments FVTPL Accounts payable and accrued liabilities Amortized cost Financial assets Recognition and initial measurement The Company recognizes financial assets when it becomes party to the contractual provisions of the instrument. Financial assets are measured initially at their fair value plus, in the case of financial assets not subsequently measured at fair value through profit or loss, transaction costs that are directly attributable to their acquisition. Transaction costs attributable to the acquisition of financial assets subsequently measured at fair value through profit or loss are expensed in profit or loss when incurred. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Classification and subsequent measurement On initial recognition, financial assets are classified and subsequently measured at amortized cost, fair value through other comprehensive income (“FVOCI”) or fair value through profit or loss (“FVTPL”). The Company determines the classification of its financial assets, together with any embedded derivatives, based on the business model for managing the financial assets and their contractual cash flow characteristics. Financial assets are classified as follows: ● Amortized cost - Assets that are held for collection of contractual cash flows where those cash flows are solely payments of principal and interest are measured at amortized cost. Interest revenue is calculated using the effective interest method and gains or losses arising from impairment, foreign exchange and derecognition are recognized in profit or loss. Financial assets measured at amortized cost are comprised of trade and other receivables. ● Fair value through other comprehensive income - Assets that are held for collection of contractual cash flows and for selling the financial assets, and for which the contractual cash flows are solely payments of principal and interest, are measured at fair value through other comprehensive income. Interest income calculated using the effective interest method and gains or losses arising from impairment and foreign exchange are recognized in profit or loss. All other changes in the carrying amount of the financial assets are recognized in other comprehensive income. Upon derecognition, the cumulative gain or loss previously recognized in other comprehensive income is reclassified to profit or loss. The Company does not hold any financial assets measured at fair value through other comprehensive income. ● Mandatorily at fair value through profit or loss - Assets that do not meet the criteria to be measured at amortized cost, or fair value through other comprehensive income, are measured at fair value through profit or loss. All interest income and changes in the financial assets’ carrying amount are recognized in profit or loss. Financial assets mandatorily measured at fair value through profit or loss are comprised of cash and investments. ● Designated at fair value through profit or loss – On initial recognition, the Company may irrevocably designate a financial asset to be measured at fair value through profit or loss in order to eliminate or significantly reduce an accounting mismatch that would otherwise arise from measuring assets or liabilities, or recognizing the gains and losses on them, on different bases. All interest income and changes in the financial assets’ carrying amount are recognized in profit or loss. The Company does not hold any financial assets designated to be measured at fair value through profit or loss. Contractual cash flow assessment The cash flows of financial assets are assessed as to whether they are solely payments of principal and interest on the basis of their contractual terms. For this purpose, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money, the credit risk associated with the principal amount outstanding, and other basic lending risks and costs. In performing this assessment, the Company considers factors that would alter the timing and amount of cash flows such as prepayment and extension features, terms that might limit the Company’s claim to cash flows, and any features that modify consideration for the time value of money. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Financial instruments (continued from previous page) Impairment The Company recognizes a loss allowance for the expected credit losses associated with its financial assets, other than financial assets measured at fair value through profit or loss. Expected credit losses are measured to reflect a probability-weighted amount, the time value of money, and reasonable and supportable information regarding past events, current conditions, and forecasts of future economic conditions. The Company applies the simplified approach for trade receivables. Using the simplified approach, the Company records a loss allowance equal to the expected credit losses resulting from all possible default events over the assets’ contractual lifetime The Company assesses whether a financial asset is credit-impaired at the reporting date. Regular indicators that a financial instrument is credit-impaired include significant financial difficulties as evidenced through borrowing patterns or observed balances in other accounts and breaches of borrowing contracts such as default events or breaches of borrowing covenants. For financial assets assessed as credit- impaired at the reporting date, the Company continues to recognize a loss allowance equal to lifetime expected credit losses. For financial assets measured at amortized cost, loss allowances for expected credit losses are presented in the statements of financial position as a deduction from the gross carrying amount of the financial asset. Financial assets are written off when the Company has no reasonable expectations of recovering all or any portion thereof. Derecognition of financial assets The Company derecognizes a financial asset when its contractual rights to the cash flows from the financial asset expire. Financial liabilities Recognition and initial measurement The Company recognizes a financial liability when it becomes party to the contractual provisions of the instrument. At initial recognition, the Company measures financial liabilities at their fair value plus transaction costs that are directly attributable to their issuance, except for financial liabilities subsequently measured at fair value through profit or loss for which transaction costs are immediately recorded in profit or loss. Where an instrument contains both a liability and equity component, these components are recognized separately based on the substance of the instrument, with the liability component measured initially at fair value and the equity component assigned the residual amount. Classification and subsequent measurement Subsequent to initial recognition, all financial liabilities are measured at amortized cost using the effective interest rate method. Interest, gains and losses relating to a financial liability are recognized in profit or loss. Derecognition of financial liabilities The Company derecognizes a financial liability only when its contractual obligations are discharged, cancelled or expire. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Financial instruments (continued from previous page) Impairment of non-financial assets Property and equipment, and intangible assets (other than goodwill) are tested for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. When an indication of impairment is identified, the carrying value of the asset or group of assets is measured against the recoverable amount. The Company evaluates impairments losses, other than goodwill impairment, for potential reversals when events or circumstances warrant such consideration. Fair value Assets and liabilities carried at fair value must be classified using a three-level hierarchy that reflects the significance and transparency of the inputs used in making the fair value measurements. Level 1 inputs are unadjusted quoted prices of identical instruments in active markets; Level 2 inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs that are not based on observable market data (unobservable data). Determination of fair value and the resulting hierarchy requires the use of observable market data whenever available. The classification of a financial instrument in the hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. Cash is recorded at fair value using level 1 inputs and investments are recorded at fair value using level 3 inputs. During the year, there were no transfers between the levels of fair value. Income taxes The liability method is used in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recorded in the results of operations in the period that includes the enactment date under the law. We establish valuation allowances for deferred tax assets based on a more likely than not standard. Deferred income tax assets are evaluated quarterly to determine if valuation allowances are required or should be adjusted. The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The assessment regarding whether a valuation allowance is required or should be adjusted also considers all available positive and negative evidence factors. It is difficult to conclude a valuation allowance is not required when there is significant objective and verifiable negative evidence, such as cumulative losses in recent years. We utilize a rolling three years of actual and current year results as the primary measure of cumulative losses in recent years. Income tax expense (benefit) for the year is allocated between continuing operations and other categories of income such as Other comprehensive income (loss). In periods in which there is a pre-tax loss from continuing operations and pre-tax income in another income category, the tax benefit allocated to continuing operations is determined by taking into account the pre-tax income of other categories. We record Global Intangible Low Tax Income (GILTI) as a current period expense when incurred. We record uncertain tax positions on the basis of a two-step process whereby we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and for those tax positions that meet the more likely than not criteria, we recognize the largest amount of tax benefit that is greater than 50 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of shares are recognized as a deduction from shareholders’ equity. Earnings per share The Company calculates basic earnings per share amounts for earnings attributable to common shareholders. Basic earnings per share is calculated by dividing earnings attributable to common shareholders (the numerator) by the weighted average number of common shares outstanding (the denominator) during the year. For the purpose of calculating diluted earnings per share, the Company adjusts the earnings attributable to common shareholders, and the weighted average number of common shares outstanding during the year, for the effects of all dilutive potential common shares. Potential common shares are treated as dilutive when, and only when, their conversion to common shares would decrease earnings per share or increase earnings per share from continuing operations. Share-based payment arrangements Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in Note 8. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the additional paid-in capital. Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. Property and equipment Property and equipment are recorded at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost includes all expenditures incurred to bring the assets to the location and condition necessary for them to be operated in the manner intended by management. Depreciation is calculated using the following terms and methods: Schedule of estimated useful life of property and equipment Equipment 5 years Straight Line Furniture 5 years Straight Line IT Equipment 3 years Straight Line Leasehold Improvement 5 years Straight Line Laptops 3 years Straight Line An item of equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is included in profit or loss in the year the asset is derecognized. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Intangible Assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated depreciation and accumulated impairment losses. Development costs for internally-generated intangible assets are capitalized when all of the following conditions are met: ● The costs attributable to the asset can be measured reliably. ● It is probable that the intangible asset will generate future economic benefits. ● The Company can demonstrate the control and ability to use the intangible asset. The amount initially recognized for internally-generated intangible assets is the sum of the expenditures incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognized, development expenditures are charged to the consolidated statement of loss and comprehensive loss in the period in which the expense is incurred. Intangible assets with finite lives are amortised over the estimated useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The depreciation period and the depreciation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the depreciation period or method, as appropriate, and are treated as changes in accounting estimates. The depreciation expense on intangible assets with finite lives is recognised in the consolidated statements of operations and comprehensive loss and in the expense category that is consistent with the function of the intangible assets. Intangible assets with indefinite useful lives are not depreciated, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of operations and comprehensive loss. Intangible assets are recorded at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost includes all expenditures incurred to bring the assets to the location and condition necessary for them to be operated in the manner intended by management. Depreciation is calculated using the following terms and methods: Schedule of estimated useful life of intangible assets Software 5 Straight Line An intangible asset is derecognized upon disposal or termination. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is included in profit or loss in the year the asset is derecognized. Revenue recognition The Company generates its revenue by charging commissions on mortgages that are applied for through the automation and digitalization process that the Company has in place. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Revenue recognition (continued) The Company has adopted ASC 606 (Revenue from Contracts with Customers). The standard provides a single comprehensive model for revenue recognition. The core principle of the standard is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard introduced a new contract-based revenue recognition model with a measurement approach that is based on an allocation of the transaction price. It establishes a five-step model to account for revenue arising from contracts with customers. Under ASC 606, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring good or services to a customer. The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with customers. The standard also specifies the accounting for incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. Revenue is recognized at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer. Rendering of services – The Company hosts an online website, using Salesforce, that brokers and agents can utilize to close out deals. The Company’s subsidiary, Pineapple Insurance Inc., generates its revenue by charging premiums for insurance policies and services. Pineapple Insurance is associated with a major insurance company from which it earns commissions for the provision of these services, primarily mortgage insurance. Mortgage insurance is a requirement of each mortgage. Pineapple Insurance has also adopted ASC 606. Typically, Pineapple Insurance is the agent supplying insurance services to the consumer and paid a commission from the premiums collected by the insurance company whose products and services it provides to the end consumer. The Company has three revenue streams: a) Sales Revenue is commission collected from financial institutions with whom it has contracts in place. The Company earns revenue based on a percentage of mortgage amount funded between individual referred by the Company and financial institutions funding the mortgage. We are an agent in these deals as we provide the platform for other parties to provide services to the end-user. For each contract with a customer, the Company identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognizes revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. The Company recognizes revenue when: a contract exists with a lender party and an agent broker, the contract identifies the use of the platform service to close a mortgage deal, the mortgage deal has been closed with the lending financial institution, and commissions paid by the lending financial institution based on various criteria of the mortgage deal including but not limited to interest rates available at that time, term, seasonality, collateral, income, purpose, etc. Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business. Revenue is recognized at the end of the deal upon completion of all the actions listed above. A typical transaction attracts a commission fee payable to Pineapple Financial Inc. b) Subscription Revenue is a flat fee that is charged to the brokers and agents for use of the platform. Revenue is recognized at the beginning of the month when an agent is invoiced and pays the fee. c) Underwriting Revenue is a flat fee charged for risk pre-assessment of the deal before it is submitted to the Lender Partner for funding. The flat fee is based on the amount of funded volume being financed in the deal. Revenue is recognized at the end of the deal upon completion of the actions listed in a). Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Principal versus Agent considerations Judgement is required in determining whether the Company is a principal or agent in transactions with the lending financial institutions (“Lender Partner”). The Company evaluates the presentation of revenue on a gross basis, or a net basis based on whether the Company controls the service provided to the end user and are the principal (i.e., “Gross”) or the Company arranges the brokers to provide the service to the end user and are an agent ( i.e., “Net”). This determination impacts the presentation of the commission payable to the brokers. For the transactions with the Lender partner our role is to provide instructions to the brokers on the information required from homeowners to complete a successful mortgage application that would be presented to the Lender partner to review and accept and pay a commission to Pineapple for facilitating a successful mortgage application. The Company concluded that the control of the mortgage application is with brokers as the ultimate information that is to be obtained from the homeowners to provide to the lender partner is controlled by the broker and the Company only facilitates the information transfer from the broker to the Lender partner to obtain mortgage for the homeowner as such the Company is an agent. Provisions A provision is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. The amount of a provision is the best estimate of the consideration at the end of the reporting period. Provisions measured using estimated cash flows required to settle the obligation are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The Company had no material provisions as at August 31, 2023 and 2022. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) |
Significant accounting judgment
Significant accounting judgments, estimates and assumptions | 12 Months Ended |
Aug. 31, 2023 | |
Significant Accounting Judgments Estimates And Assumptions | |
Significant accounting judgments, estimates and assumptions | 3. Significant accounting judgments, estimates and assumptions The preparation of 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 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. Investments (level 3) Where the fair values of financial assets and financial liabilities recorded on the statements of financial position, cannot be derived from active markets, they are determined using a variety of valuation techniques. The inputs to these models are derived from observable market data where possible; where observable market data is not available, Management’s judgment is required to establish fair values. Share based compensation Management is required to make certain estimates when determining the fair value of stock options awards, and the number of awards that are expected to vest. These estimates affect the amount recognized as stock-based compensation in the statements of income and comprehensive income based on estimates of volatility, forfeitures and expected lives of the underlying stock options which are at a maximum of 36 months vesting period. Useful life of Assets Significant judgement is involved in determination of useful life for the property plant and equipment and intangible assets. Management assesses the reasonability of the useful life on an annual basis to record the depreciation of the intangibles and property plant and equipment. |
Investments
Investments | 12 Months Ended |
Aug. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 4. Investments During the year ended August 31, 2021, the Company purchased an investment in a private company. The Company holds a 5 27,143 Nil Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) |
Property and Equipment
Property and Equipment | 12 Months Ended |
Aug. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment The Company’s property and equipment consist of laptops, furniture and office equipment. Schedule of property and equipment Property and equipment Cost Balance, August 31, 2021 $ 67,377 Additions 249,322 Translation adjustment (19,700 ) Balance, August 31, 2022 $ 296,999 Additions 62,073 Translation adjustment (9,789 ) Balance, August 31, 2023 $ 349,283 Accumulated depreciation Balance, August 31, 2021 $ 8,711 Depreciation $ 42,218 Translation adjustment (1,595 ) Balance, August 31, 2022 $ 49,334 Depreciation 67,674 Translation adjustment (9,816 ) Balance, August 31, 2023 $ 107,192 Net carrying value August 31, 2022 $ 247,665 August 31, 2023 $ 242,091 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) |
Intangible Assets
Intangible Assets | 12 Months Ended |
Aug. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets The intangible assets additions in current year are related to development costs capitalized for internally generated software with a useful life of 5 . Schedule of cost and accumulated depreciation Intangible assets Cost Balance, August 31, 2021 $ - Additions 803,610 Translation adjustment (24,120 ) Balance, August 31, 2022 $ 779,490 Additions 1,300,225 Translation adjustment (22,190 ) Balance, August 31, 2023 $ 2,057,525 Accumulated depreciation Balance, August 31, 2021 $ - Depreciation $ 79,489 Translation adjustment (2,387 ) Balance, August 31, 2022 $ 77,102 Depreciation $ 265,150 Translation adjustment (3,681 ) Balance, August 31, 2023 $ 338,571 Net carrying value August 31, 2022 $ 702,388 August 31, 2023 $ 1,718,954 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) |
Share capital
Share capital | 12 Months Ended |
Aug. 31, 2023 | |
Equity [Abstract] | |
Share capital | 7. Share capital Authorized share capital The authorized share capital of the Company consists of an unlimited number of common shares with a nominal par value. Schedule of authorized share capital # $ Balance, August 31, 2020 2,564,103 78 Issue of common shares and warrants in connection with the private placement of Units 2,836,164 6,115,978 Issue of common shares for consulting services received 906,712 2,833,478 Issue of warrants for consulting services received - Issuance costs: - - paid in cash (1,003,373 ) - paid by issuance of warrants (3,043,130 ) Balance, August 31, 2021, 2022 and 2023 6,306,979 4,903,031 (i) 2021 private placement In 2021, the Company completed a private placement of 1,548,472 1,973,047 1.56 1,287,692 4,142,931 3.94 2.42 6.01 The allocation of proceeds between common shares and warrants was made when the equity instruments were issued using a relative fair value method. The Company completed a private placement of 2,836,164 7,538,024 1.56 3.94 2.93 7.29 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 7. Share capital (continued from previous page) (ii) Issue of common shares for consulting services received The Company entered into an arrangement with Gravitas Securities Inc. (“Gravitas”), a related party and shareholder, pursuant to which Gravitas agreed to act as an agent for and on behalf of the Company in connection with the 2021 private placement. In 2021, the Company issued 906,712 2,833,478 The fair value of the services received could not be estimated reliably. Accordingly, the fair value of the services received, and the corresponding increase in equity, was measured by reference to the fair value of the common shares issued. The corresponding cost of the services received was recognized as an issuance cost directly in equity. In 2021, $ 212,963 48,747 (iii) Issuance costs paid in cash In 2021, the Company paid a total $ 1,003,373 NIL 788,185 NIL The fair value of the warrants was estimated to be $ 0.27 Schedule of Fair Value of Warrants Issuance on March 29, 2021 Estimated fair value per common share CAD $ 1.56 Exercise price of the warrant CAD $ 2.93 Expected volatility of the underlying common share 100 % Expected life of the warrant 2.75 Expected dividend yield 0.00 % Risk-free interest rate 0.42 % Issuance on April 21, 2021 Estimated fair value per common share CAD $ 3.94 Exercise price of the warrant CAD $ 7.29 Expected volatility of the underlying common share 100 % Expected life of the warrant 2.75 Expected dividend yield 0.00 % Risk-free interest rate 0.45 % Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) |
Common share purchase warrants
Common share purchase warrants reserve | 12 Months Ended |
Aug. 31, 2023 | |
Common Share Purchase Warrants Reserve | |
Common share purchase warrants reserve | 8. Common share purchase warrants reserve Schedule of common share purchase warrants reserve # $ Balance, August 31, 2020 and 2019 - - Issue of common shares and warrants in connection with the private placement of Units 1,418,903 1,422,045 Issue of warrants for consulting services received 234,086 258,400 Share-based compensation expense - 567,938 Issuance costs: - paid by issuance of warrants - (48,747 ) Balance, August 31, 2021 1,652,989 2,199,636 Share-based compensation expense - 723,217 Balance, August 31, 2022 1,652,989 2,922,853 Share-based compensation expense - 33,091 Balance, August 31, 2023 1,652,989 2,955,944 Issue of warrants for consulting services received In 2021, the Company issued 234,086 258,400 ● Total of 100,651 2.93 ● Total of 133,435 7.29 The fair value of consulting services received, and the corresponding increase in equity, was measured by reference to the fair value of equity instruments granted. The cost of the services received was recognized as an issuance cost directly in equity, of which $ 258,400 60,122 The following reconciles the warrants outstanding at the beginning and the end of the year: Schedule of Warrants Outstanding Number of Warrants Weighted Average Exercise Price # $ Balance, August 31, 2020 - - Issued during the year 1,652,988 3.94 Balance, August 31, 2022 and 2023 1,652,988 3.94 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) |
Share-based benefits reserve
Share-based benefits reserve | 12 Months Ended |
Aug. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based benefits reserve | 9. Share-based benefits reserve The Company has a share option plan (the “Plan”) to attract, retain and motivate qualified directors, officers, employees and consultants whose present and future contributions are important to the success of the Company by offering them an opportunity to participate in the Company’s future performance through the award of share options. Each share option converts into one common share of Pineapple Financial Inc. on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. In 2017, the Plan was amended such that the total number of common shares reserved and available for grant and issuance pursuant to the Plan is to equal 10 Options granted on June 14, 2021, vest over a 2-year period whereby 25% of the options granted vested on the date of grant, and the remaining unvested options vest in equal installments every 6-months thereafter. 1,317,155 57,340 637,517 The Chief Financial Officer was granted 63,821 8,974 141,885 24,250 nil 85,700 The following reconciles the options outstanding at the beginning and end of the year that were granted to eligible participants pursuant to the Plan: Schedule of Options Outstanding Granted Number of Options Weighted Average Exercise Price # $ Balance, August 31, 2021 565,689 3.72 Granted during the year 62,821 3.82 Balance, August 31, 2022 628,510 3.71 Forfieted during year (62,821 ) 3.82 Balance, August 31, 2023 565,689 3.72 Exercisable, August 31, 2023 565,689 3.72 The Company used the Black-Scholes formula to estimate the fair value of share options granted during the year, based on the following inputs: Schedule of Fair Value Of Share Options Granted August 31, August 31, Weighted average estimated fair value per common share $ n/a 3.00 Weighted average exercise price of the share option $ n/a 3.20 Weighted average expected volatility of the underlying common share n/a 100 % Weighted average expected life of the share option n/a 5 Weighted average expected dividend yield n/a 0 % Weighted average risk-free interest rate n/a 1.48 % Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) |
Income taxes
Income taxes | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 10. Income taxes The reconciliation of the combined federal and state income tax rate of 26.5 26.5 Schedule of Federal and State Income Tax Rate August 31, 2023 August 31, 2022 $ $ (Loss) before recovery of income taxes (2,809,037 ) (2,810,061 ) Expected income tax (recovery) expense (744,395 ) (744,670 ) Non-deductible expenses 45,338 197,240 Valuation Allowance 699,057 547,430 Income tax expense (recovery) - - Deferred income taxes The following table summarizes the components of deferred tax: Schedule of Deferred Income Taxes August 31, 2023 August 31, 2022 Deferred tax assets Property and equipment - 18,760 Intangible assets - 26,820 Finance lease liabilities 293,610 270,460 Investments 3,930 - Share issuance costs 435,920 651,140 Operating tax losses carried forward 1,844,180 853,230 SR&ED Pool from T661 67,569 - Charitable donations carryforward 28,990 - Total deferred tax assets 2,674,199 1,820,410 Valuation Allowance (2,266,630 ) (1,567,580 ) Total net deferred tax assets 407,569 252,830 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 10. Income taxes (continued from previous page) Deferred tax liabilities August 31, 2023 August 31, 2022 Property and equipment (41,190 ) - Right-of-use asset (254,500 ) (252,830 ) Intangible Assets (110,960 ) - Loan (919 ) - Total deferred tax liabilities (407,569 ) (252,830 ) Net deferred tax liability - - The Canadian non-capital losses carried forward expire in 2043. The remaining deductible temporary differences may be carried forward indefinitely. The Company has adopted the provisions of ASC 740-10, which clarifies the accounting for uncertain tax positions. ASC 740-10 requires that the Company recognize the impact of a tax position in its financial statements if the position is more likely than not to be sustained upon examination based on the technical merits of the position. For the year ended August 31, 2023, the Company had no material unrecognized tax benefits, and based on the information currently available, no significant changes in unrecognized tax benefits are expected in the next 12 months. |
Right-of-use asset and lease li
Right-of-use asset and lease liability | 12 Months Ended |
Aug. 31, 2023 | |
Right-of-use Asset And Lease Liability | |
Right-of-use asset and lease liability | 11. Right-of-use asset and lease liability The Company leases all its office premises in Ontario and British Columbia, Canada. The Company extended the current Ontario premises of 4,894 sq. ft. lease to January 1, 2030, and acquired additional premises of 8,368 square feet adjacent to the current office premises with the same landlord. The additional premises lease also expires on January 1, 2030. The total area of use by The Company is 13,262 sq. ft. The Company acquired a 1,454 square feet premise lease in British Columbia commencing August 1, 2023 and expiring on July 31, 2028. The Company recognized a right-of-use asset and corresponding lease liability in respect of this lease. The lease liability was measured at the present value of the remaining lease payments, discounted using the Company’s estimated incremental borrowing rate as at September 1, 2017 (date of initial application), estimated to be 6%. The right-of-use asset was measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the interim condensed balance sheet immediately before the date of initial application. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 11. Right-of-use asset and lease liability (continued from previous page) The following schedule shows the movement in the Company’s right-of-use asset: Schedule of Right-Of-Use Asset Right-of-use asset Cost Balance, August 31, 2021 $ 297,723 Additions 786,800 Balance, August 31, 2022 $ 1,084,523 Additions 141,799 Translation adjustment (48,601 ) Balance, August 31, 2023 $ 1,177,721 Accumulated Depreciation Balance, August 31, 2021 $ 40,383 Depreciation 90,049 Balance, August 31, 2022 $ 130,432 Depreciation 108,335 Translation adjustment (21,423 ) Balance, August 31, 2023 $ 217,344 Carrying Amount August 31, 2022 $ 954,091 August 31, 2023 $ 960,377 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 11. Right-of-use asset and lease liability (continued from previous page) The following schedule shows the movement in the Company’s lease liability during the year: Schedule of Lease Liability August 31, 2023 August 31, 2022 Balance, beginning of year $ 1,020,585 $ 263,238 Additions 141,799 786,800 Interest Expense 56,316 32,017 Lease payments (81,090 ) (61,470 ) Translation Adjustment (29,649 ) - Balance, end of year $ 1,107,961 $ 1,020,585 Current 138,372 2,024 Non-Current 969,589 1,018,561 $ 1,107,961 $ 1,020,585 The following table provides a maturity analysis of the Company’s lease liability. The amounts disclosed in the maturity analysis are the contractual undiscounted cash flows before deducting interest or finance charges: Schedule of Maturity Lease Liability 2024 $ 213,288 2025 217,856 2026 219,055 2027 216,476 2028 229,943 2029 201,891 2030 16,824 Total Lease liability $ 1,315,334 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) |
Expenses
Expenses | 12 Months Ended |
Aug. 31, 2023 | |
Schedule Of Selling General And Administrative Expenses | |
Expenses | 12. Expenses The following table provides a breakdown of the selling, general and administrative expenses: Schedule of Selling, General and Administrative Expenses August 31, 2023 August 31, 2022 Software Subscription 816,913 923,137 Marketing, Advertising and promotions 649,934 795,588 Events and award shows 194,863 - Office and generai 183,870 259,480 Professional fees 661,265 243,100 Dues and Subscriptions 58,366 174,743 Rent 165,750 150,141 Consulting fees 210,063 146,554 Travel 97,372 104,812 Donations 46,002 61,206 Lease expense 7,534 63,425 Insurance (80,934 ) 54,867 Repair and maintenance 2,489 223 Utilities 1,459 - Selling, general and administrative 3,014,945 2,977,277 |
Deferred government grant
Deferred government grant | 12 Months Ended |
Aug. 31, 2023 | |
Deferred Government Grant | |
Deferred government grant | 13. Deferred government grant The Company was eligible for the Government of Canada SRED program and received $607,080 as at August 31, 2023 for the historical SRED claimed. The Company has accrued $ 710,320 699,627 591,480 Nil |
Related party transactions
Related party transactions | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related party transactions | 14. Related party transactions Compensation of key management personnel includes the CEO, COO, CSO, and CFO: Schedule of Related Party Transactions August 31, 2023 August 31, 2022 $ $ Salaries and Wages 522,916 776,615 Share-based compensation 28,989 410,192 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) |
Risk management arising from fi
Risk management arising from financial instruments | 12 Months Ended |
Aug. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Risk management arising from financial instruments | 15. Risk management arising from financial instruments a) Credit risk Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company’s principal financial assets that expose it to credit risk are cash and trade receivables. The Company mitigates this risk by monitoring the credit worthiness of its customers and holding cash at financial institutions. The maximum credit exposure at August 31, 2023 is the carrying amount of cash and trade receivables. The Company’s exposure to credit risk is considered to be low, given the size and nature of the various counterparties involved and their history of performance. The Company has not historically incurred any significant credit loss in respect of its trade receivables. Based on consideration of all possible default events over the assets’ contractual lifetime, the expected credit loss in respect of the Company’s trade receivables was minimal as at August 31, 2023 and 2022. b) Interest rate risk 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 interest-bearing debt. c) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s approach in managing liquidity is to ensure, to the extent possible, that it will have sufficient liquidity to meet its liabilities when due, by continuously monitoring actual and forecasted cash flows. d) Management of capital The Company’s objective of managing capital, comprising of shareholders’ equity, is to ensure its continued ability to operate as a going concern. The Company manages its capital structure and makes changes to it based on economic conditions. Management and the Board of Directors review the Company’s capital management approach on an ongoing basis and believe this approach, given the relative size of the Company, is reasonable. The Company is not subject to externally imposed capital requirements. The Company’s capital management objectives, policies and processes have remained unchanged during the year ended August 31, 2023. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) |
Disaggregation of Revenue
Disaggregation of Revenue | 12 Months Ended |
Aug. 31, 2023 | |
Disaggregation Of Revenue | |
Disaggregation of Revenue | 16. Disaggregation of Revenue Schedule of Disaggregation of Revenue August 31, 2023 August 31, 2022 $ $ Sales revenue 15,026,896 19,497,519 Commission expense 13,931,836 16,780,133 Net sales revenue 1,095,060 2,717,385 Subscription revenue 736,708 616,734 Other revenue 332,448 - Sponsorship revenue 189,968 - Underwriting revenue 148,080 266,731 Total revenue 2,502,264 3,600,851 |
Loan
Loan | 12 Months Ended |
Aug. 31, 2023 | |
Debt Disclosure [Abstract] | |
Loan | 17. Loan The Company entered into a loan on July 31, 2023, with a one-year term July 31, 2024 430,098 12 2 8,643 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 18. Commitments and contingencies In the ordinary course of operating, the Company may from time to time be subject to various claims or possible claims. Management believes that there are no claims or possible claims that if resolved would either individually or collectively result in a material adverse impact on the Company’s financial position, results of operations, or cash flows. These matters are inherently uncertain, and management’s view of these matters may change in the future. See note 11 related to lease commitments. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Aug. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events The Company was listed on the New York stock exchange (NYSE) subsequent to year under the ticker PAPL. The Company issued 875,000 3,220,000 |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Statement of compliance | Statement of compliance These consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”). The financial statements were authorized for issue by the Board of Directors on December 14, 2023. |
Basis of preparation, functional and presentation currency | Basis of preparation, functional and presentation currency The financial statements have been prepared in accordance with US GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business on the historical cost basis except for certain financial instruments that are measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. All financial information is in US Dollars (“USD”) as the Company’s presentation currency and transactions are conducted in the functional currency of Canadian dollars (“CAD”). |
Adjustment for Reverse Stock Split | Adjustment for Reverse Stock Split In July 2023, the Board approved a 1-for-3.9 reverse stock split |
Operating segments | Operating segments The Company determines its reporting units in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 280, Segment Reporting. The Company evaluates a reporting unit by first identifying its operating segments under ASC 280. The Company operates as one operating segment which is reported in a manner consistent with the internal reporting provided to the chief operating decision-makers. The chief operating decision-makers are responsible for the allocation of resources and assessing the performance of the operating segment and have been identified as the CEO and CFO of the Company. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiary, Pineapple Insurance Inc and Pineapple National Inc. All transactions with the subsidiary and any intercompany balances, gains or losses have been eliminated upon consolidation. The subsidiary has a USD presentation currency, and the functional currency is in CAD, and accounting policies have been applied consistently to the subsidiary. |
ASC 842 Leases | ASC 842 Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, less any lease incentives received. The right-of-use assets are depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. In addition, the right-of-use asset can be periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The Company recognized a lease liability and right-of-use asset for most leases and applied ASC 842. The lease liability was measured at the present value of the remaining lease payments, discounted using the Company’s estimated incremental borrowing rate at the date of initial application, estimated to be 6 |
Financial instruments | Financial instruments The following table shows the classification categories under US GAAP ASC 825 for each class of the Company’s financial assets and financial liabilities. Asset / liability: Classification: Cash FVTPL Trade and other receivables Amortized cost Investments FVTPL Accounts payable and accrued liabilities Amortized cost Financial assets Recognition and initial measurement The Company recognizes financial assets when it becomes party to the contractual provisions of the instrument. Financial assets are measured initially at their fair value plus, in the case of financial assets not subsequently measured at fair value through profit or loss, transaction costs that are directly attributable to their acquisition. Transaction costs attributable to the acquisition of financial assets subsequently measured at fair value through profit or loss are expensed in profit or loss when incurred. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Classification and subsequent measurement On initial recognition, financial assets are classified and subsequently measured at amortized cost, fair value through other comprehensive income (“FVOCI”) or fair value through profit or loss (“FVTPL”). The Company determines the classification of its financial assets, together with any embedded derivatives, based on the business model for managing the financial assets and their contractual cash flow characteristics. Financial assets are classified as follows: ● Amortized cost - Assets that are held for collection of contractual cash flows where those cash flows are solely payments of principal and interest are measured at amortized cost. Interest revenue is calculated using the effective interest method and gains or losses arising from impairment, foreign exchange and derecognition are recognized in profit or loss. Financial assets measured at amortized cost are comprised of trade and other receivables. ● Fair value through other comprehensive income - Assets that are held for collection of contractual cash flows and for selling the financial assets, and for which the contractual cash flows are solely payments of principal and interest, are measured at fair value through other comprehensive income. Interest income calculated using the effective interest method and gains or losses arising from impairment and foreign exchange are recognized in profit or loss. All other changes in the carrying amount of the financial assets are recognized in other comprehensive income. Upon derecognition, the cumulative gain or loss previously recognized in other comprehensive income is reclassified to profit or loss. The Company does not hold any financial assets measured at fair value through other comprehensive income. ● Mandatorily at fair value through profit or loss - Assets that do not meet the criteria to be measured at amortized cost, or fair value through other comprehensive income, are measured at fair value through profit or loss. All interest income and changes in the financial assets’ carrying amount are recognized in profit or loss. Financial assets mandatorily measured at fair value through profit or loss are comprised of cash and investments. ● Designated at fair value through profit or loss – On initial recognition, the Company may irrevocably designate a financial asset to be measured at fair value through profit or loss in order to eliminate or significantly reduce an accounting mismatch that would otherwise arise from measuring assets or liabilities, or recognizing the gains and losses on them, on different bases. All interest income and changes in the financial assets’ carrying amount are recognized in profit or loss. The Company does not hold any financial assets designated to be measured at fair value through profit or loss. Contractual cash flow assessment The cash flows of financial assets are assessed as to whether they are solely payments of principal and interest on the basis of their contractual terms. For this purpose, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money, the credit risk associated with the principal amount outstanding, and other basic lending risks and costs. In performing this assessment, the Company considers factors that would alter the timing and amount of cash flows such as prepayment and extension features, terms that might limit the Company’s claim to cash flows, and any features that modify consideration for the time value of money. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Financial instruments (continued from previous page) Impairment The Company recognizes a loss allowance for the expected credit losses associated with its financial assets, other than financial assets measured at fair value through profit or loss. Expected credit losses are measured to reflect a probability-weighted amount, the time value of money, and reasonable and supportable information regarding past events, current conditions, and forecasts of future economic conditions. The Company applies the simplified approach for trade receivables. Using the simplified approach, the Company records a loss allowance equal to the expected credit losses resulting from all possible default events over the assets’ contractual lifetime The Company assesses whether a financial asset is credit-impaired at the reporting date. Regular indicators that a financial instrument is credit-impaired include significant financial difficulties as evidenced through borrowing patterns or observed balances in other accounts and breaches of borrowing contracts such as default events or breaches of borrowing covenants. For financial assets assessed as credit- impaired at the reporting date, the Company continues to recognize a loss allowance equal to lifetime expected credit losses. For financial assets measured at amortized cost, loss allowances for expected credit losses are presented in the statements of financial position as a deduction from the gross carrying amount of the financial asset. Financial assets are written off when the Company has no reasonable expectations of recovering all or any portion thereof. Derecognition of financial assets The Company derecognizes a financial asset when its contractual rights to the cash flows from the financial asset expire. Financial liabilities Recognition and initial measurement The Company recognizes a financial liability when it becomes party to the contractual provisions of the instrument. At initial recognition, the Company measures financial liabilities at their fair value plus transaction costs that are directly attributable to their issuance, except for financial liabilities subsequently measured at fair value through profit or loss for which transaction costs are immediately recorded in profit or loss. Where an instrument contains both a liability and equity component, these components are recognized separately based on the substance of the instrument, with the liability component measured initially at fair value and the equity component assigned the residual amount. Classification and subsequent measurement Subsequent to initial recognition, all financial liabilities are measured at amortized cost using the effective interest rate method. Interest, gains and losses relating to a financial liability are recognized in profit or loss. Derecognition of financial liabilities The Company derecognizes a financial liability only when its contractual obligations are discharged, cancelled or expire. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Financial instruments (continued from previous page) |
Impairment of non-financial assets | Impairment of non-financial assets Property and equipment, and intangible assets (other than goodwill) are tested for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. When an indication of impairment is identified, the carrying value of the asset or group of assets is measured against the recoverable amount. The Company evaluates impairments losses, other than goodwill impairment, for potential reversals when events or circumstances warrant such consideration. |
Fair value | Fair value Assets and liabilities carried at fair value must be classified using a three-level hierarchy that reflects the significance and transparency of the inputs used in making the fair value measurements. Level 1 inputs are unadjusted quoted prices of identical instruments in active markets; Level 2 inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs that are not based on observable market data (unobservable data). Determination of fair value and the resulting hierarchy requires the use of observable market data whenever available. The classification of a financial instrument in the hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. Cash is recorded at fair value using level 1 inputs and investments are recorded at fair value using level 3 inputs. During the year, there were no transfers between the levels of fair value. |
Income taxes | Income taxes The liability method is used in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recorded in the results of operations in the period that includes the enactment date under the law. We establish valuation allowances for deferred tax assets based on a more likely than not standard. Deferred income tax assets are evaluated quarterly to determine if valuation allowances are required or should be adjusted. The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The assessment regarding whether a valuation allowance is required or should be adjusted also considers all available positive and negative evidence factors. It is difficult to conclude a valuation allowance is not required when there is significant objective and verifiable negative evidence, such as cumulative losses in recent years. We utilize a rolling three years of actual and current year results as the primary measure of cumulative losses in recent years. Income tax expense (benefit) for the year is allocated between continuing operations and other categories of income such as Other comprehensive income (loss). In periods in which there is a pre-tax loss from continuing operations and pre-tax income in another income category, the tax benefit allocated to continuing operations is determined by taking into account the pre-tax income of other categories. We record Global Intangible Low Tax Income (GILTI) as a current period expense when incurred. We record uncertain tax positions on the basis of a two-step process whereby we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and for those tax positions that meet the more likely than not criteria, we recognize the largest amount of tax benefit that is greater than 50 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) |
Share Capital | Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issuance of shares are recognized as a deduction from shareholders’ equity. |
Earnings per share | Earnings per share The Company calculates basic earnings per share amounts for earnings attributable to common shareholders. Basic earnings per share is calculated by dividing earnings attributable to common shareholders (the numerator) by the weighted average number of common shares outstanding (the denominator) during the year. For the purpose of calculating diluted earnings per share, the Company adjusts the earnings attributable to common shareholders, and the weighted average number of common shares outstanding during the year, for the effects of all dilutive potential common shares. Potential common shares are treated as dilutive when, and only when, their conversion to common shares would decrease earnings per share or increase earnings per share from continuing operations. |
Share-based payment arrangements | Share-based payment arrangements Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in Note 8. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the additional paid-in capital. Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. |
Property and equipment | Property and equipment Property and equipment are recorded at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost includes all expenditures incurred to bring the assets to the location and condition necessary for them to be operated in the manner intended by management. Depreciation is calculated using the following terms and methods: Schedule of estimated useful life of property and equipment Equipment 5 years Straight Line Furniture 5 years Straight Line IT Equipment 3 years Straight Line Leasehold Improvement 5 years Straight Line Laptops 3 years Straight Line An item of equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is included in profit or loss in the year the asset is derecognized. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) |
Intangible Assets | Intangible Assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated depreciation and accumulated impairment losses. Development costs for internally-generated intangible assets are capitalized when all of the following conditions are met: ● The costs attributable to the asset can be measured reliably. ● It is probable that the intangible asset will generate future economic benefits. ● The Company can demonstrate the control and ability to use the intangible asset. The amount initially recognized for internally-generated intangible assets is the sum of the expenditures incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognized, development expenditures are charged to the consolidated statement of loss and comprehensive loss in the period in which the expense is incurred. Intangible assets with finite lives are amortised over the estimated useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The depreciation period and the depreciation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the depreciation period or method, as appropriate, and are treated as changes in accounting estimates. The depreciation expense on intangible assets with finite lives is recognised in the consolidated statements of operations and comprehensive loss and in the expense category that is consistent with the function of the intangible assets. Intangible assets with indefinite useful lives are not depreciated, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of operations and comprehensive loss. Intangible assets are recorded at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost includes all expenditures incurred to bring the assets to the location and condition necessary for them to be operated in the manner intended by management. Depreciation is calculated using the following terms and methods: Schedule of estimated useful life of intangible assets Software 5 Straight Line An intangible asset is derecognized upon disposal or termination. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is included in profit or loss in the year the asset is derecognized. |
Revenue recognition | Revenue recognition The Company generates its revenue by charging commissions on mortgages that are applied for through the automation and digitalization process that the Company has in place. Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Revenue recognition (continued) The Company has adopted ASC 606 (Revenue from Contracts with Customers). The standard provides a single comprehensive model for revenue recognition. The core principle of the standard is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard introduced a new contract-based revenue recognition model with a measurement approach that is based on an allocation of the transaction price. It establishes a five-step model to account for revenue arising from contracts with customers. Under ASC 606, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring good or services to a customer. The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with customers. The standard also specifies the accounting for incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. Revenue is recognized at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer. Rendering of services – The Company hosts an online website, using Salesforce, that brokers and agents can utilize to close out deals. The Company’s subsidiary, Pineapple Insurance Inc., generates its revenue by charging premiums for insurance policies and services. Pineapple Insurance is associated with a major insurance company from which it earns commissions for the provision of these services, primarily mortgage insurance. Mortgage insurance is a requirement of each mortgage. Pineapple Insurance has also adopted ASC 606. Typically, Pineapple Insurance is the agent supplying insurance services to the consumer and paid a commission from the premiums collected by the insurance company whose products and services it provides to the end consumer. The Company has three revenue streams: a) Sales Revenue is commission collected from financial institutions with whom it has contracts in place. The Company earns revenue based on a percentage of mortgage amount funded between individual referred by the Company and financial institutions funding the mortgage. We are an agent in these deals as we provide the platform for other parties to provide services to the end-user. For each contract with a customer, the Company identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognizes revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. The Company recognizes revenue when: a contract exists with a lender party and an agent broker, the contract identifies the use of the platform service to close a mortgage deal, the mortgage deal has been closed with the lending financial institution, and commissions paid by the lending financial institution based on various criteria of the mortgage deal including but not limited to interest rates available at that time, term, seasonality, collateral, income, purpose, etc. Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business. Revenue is recognized at the end of the deal upon completion of all the actions listed above. A typical transaction attracts a commission fee payable to Pineapple Financial Inc. b) Subscription Revenue is a flat fee that is charged to the brokers and agents for use of the platform. Revenue is recognized at the beginning of the month when an agent is invoiced and pays the fee. c) Underwriting Revenue is a flat fee charged for risk pre-assessment of the deal before it is submitted to the Lender Partner for funding. The flat fee is based on the amount of funded volume being financed in the deal. Revenue is recognized at the end of the deal upon completion of the actions listed in a). Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 2. Significant accounting policies (continued from previous page) Principal versus Agent considerations Judgement is required in determining whether the Company is a principal or agent in transactions with the lending financial institutions (“Lender Partner”). The Company evaluates the presentation of revenue on a gross basis, or a net basis based on whether the Company controls the service provided to the end user and are the principal (i.e., “Gross”) or the Company arranges the brokers to provide the service to the end user and are an agent ( i.e., “Net”). This determination impacts the presentation of the commission payable to the brokers. For the transactions with the Lender partner our role is to provide instructions to the brokers on the information required from homeowners to complete a successful mortgage application that would be presented to the Lender partner to review and accept and pay a commission to Pineapple for facilitating a successful mortgage application. The Company concluded that the control of the mortgage application is with brokers as the ultimate information that is to be obtained from the homeowners to provide to the lender partner is controlled by the broker and the Company only facilitates the information transfer from the broker to the Lender partner to obtain mortgage for the homeowner as such the Company is an agent. |
Provisions | Provisions A provision is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. The amount of a provision is the best estimate of the consideration at the end of the reporting period. Provisions measured using estimated cash flows required to settle the obligation are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The Company had no material provisions as at August 31, 2023 and 2022. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful life of property and equipment | Depreciation is calculated using the following terms and methods: Schedule of estimated useful life of property and equipment Equipment 5 years Straight Line Furniture 5 years Straight Line IT Equipment 3 years Straight Line Leasehold Improvement 5 years Straight Line Laptops 3 years Straight Line |
Schedule of estimated useful life of intangible assets | Depreciation is calculated using the following terms and methods: Schedule of estimated useful life of intangible assets Software 5 Straight Line |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | The Company’s property and equipment consist of laptops, furniture and office equipment. Schedule of property and equipment Property and equipment Cost Balance, August 31, 2021 $ 67,377 Additions 249,322 Translation adjustment (19,700 ) Balance, August 31, 2022 $ 296,999 Additions 62,073 Translation adjustment (9,789 ) Balance, August 31, 2023 $ 349,283 Accumulated depreciation Balance, August 31, 2021 $ 8,711 Depreciation $ 42,218 Translation adjustment (1,595 ) Balance, August 31, 2022 $ 49,334 Depreciation 67,674 Translation adjustment (9,816 ) Balance, August 31, 2023 $ 107,192 Net carrying value August 31, 2022 $ 247,665 August 31, 2023 $ 242,091 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of cost and accumulated depreciation | Schedule of cost and accumulated depreciation Intangible assets Cost Balance, August 31, 2021 $ - Additions 803,610 Translation adjustment (24,120 ) Balance, August 31, 2022 $ 779,490 Additions 1,300,225 Translation adjustment (22,190 ) Balance, August 31, 2023 $ 2,057,525 Accumulated depreciation Balance, August 31, 2021 $ - Depreciation $ 79,489 Translation adjustment (2,387 ) Balance, August 31, 2022 $ 77,102 Depreciation $ 265,150 Translation adjustment (3,681 ) Balance, August 31, 2023 $ 338,571 Net carrying value August 31, 2022 $ 702,388 August 31, 2023 $ 1,718,954 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Equity [Abstract] | |
Schedule of authorized share capital | The authorized share capital of the Company consists of an unlimited number of common shares with a nominal par value. Schedule of authorized share capital # $ Balance, August 31, 2020 2,564,103 78 Issue of common shares and warrants in connection with the private placement of Units 2,836,164 6,115,978 Issue of common shares for consulting services received 906,712 2,833,478 Issue of warrants for consulting services received - Issuance costs: - - paid in cash (1,003,373 ) - paid by issuance of warrants (3,043,130 ) Balance, August 31, 2021, 2022 and 2023 6,306,979 4,903,031 |
Schedule of Fair Value of Warrants | The fair value of the warrants was estimated to be $ 0.27 Schedule of Fair Value of Warrants Issuance on March 29, 2021 Estimated fair value per common share CAD $ 1.56 Exercise price of the warrant CAD $ 2.93 Expected volatility of the underlying common share 100 % Expected life of the warrant 2.75 Expected dividend yield 0.00 % Risk-free interest rate 0.42 % Issuance on April 21, 2021 Estimated fair value per common share CAD $ 3.94 Exercise price of the warrant CAD $ 7.29 Expected volatility of the underlying common share 100 % Expected life of the warrant 2.75 Expected dividend yield 0.00 % Risk-free interest rate 0.45 % |
Common share purchase warrant_2
Common share purchase warrants reserve (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Common Share Purchase Warrants Reserve | |
Schedule of common share purchase warrants reserve | Schedule of common share purchase warrants reserve # $ Balance, August 31, 2020 and 2019 - - Issue of common shares and warrants in connection with the private placement of Units 1,418,903 1,422,045 Issue of warrants for consulting services received 234,086 258,400 Share-based compensation expense - 567,938 Issuance costs: - paid by issuance of warrants - (48,747 ) Balance, August 31, 2021 1,652,989 2,199,636 Share-based compensation expense - 723,217 Balance, August 31, 2022 1,652,989 2,922,853 Share-based compensation expense - 33,091 Balance, August 31, 2023 1,652,989 2,955,944 |
Schedule of Warrants Outstanding | The following reconciles the warrants outstanding at the beginning and the end of the year: Schedule of Warrants Outstanding Number of Warrants Weighted Average Exercise Price # $ Balance, August 31, 2020 - - Issued during the year 1,652,988 3.94 Balance, August 31, 2022 and 2023 1,652,988 3.94 |
Share-based benefits reserve (T
Share-based benefits reserve (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Options Outstanding Granted | The following reconciles the options outstanding at the beginning and end of the year that were granted to eligible participants pursuant to the Plan: Schedule of Options Outstanding Granted Number of Options Weighted Average Exercise Price # $ Balance, August 31, 2021 565,689 3.72 Granted during the year 62,821 3.82 Balance, August 31, 2022 628,510 3.71 Forfieted during year (62,821 ) 3.82 Balance, August 31, 2023 565,689 3.72 Exercisable, August 31, 2023 565,689 3.72 |
Schedule of Fair Value Of Share Options Granted | The Company used the Black-Scholes formula to estimate the fair value of share options granted during the year, based on the following inputs: Schedule of Fair Value Of Share Options Granted August 31, August 31, Weighted average estimated fair value per common share $ n/a 3.00 Weighted average exercise price of the share option $ n/a 3.20 Weighted average expected volatility of the underlying common share n/a 100 % Weighted average expected life of the share option n/a 5 Weighted average expected dividend yield n/a 0 % Weighted average risk-free interest rate n/a 1.48 % |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Federal and State Income Tax Rate | Schedule of Federal and State Income Tax Rate August 31, 2023 August 31, 2022 $ $ (Loss) before recovery of income taxes (2,809,037 ) (2,810,061 ) Expected income tax (recovery) expense (744,395 ) (744,670 ) Non-deductible expenses 45,338 197,240 Valuation Allowance 699,057 547,430 Income tax expense (recovery) - - |
Schedule of Deferred Income Taxes | The following table summarizes the components of deferred tax: Schedule of Deferred Income Taxes August 31, 2023 August 31, 2022 Deferred tax assets Property and equipment - 18,760 Intangible assets - 26,820 Finance lease liabilities 293,610 270,460 Investments 3,930 - Share issuance costs 435,920 651,140 Operating tax losses carried forward 1,844,180 853,230 SR&ED Pool from T661 67,569 - Charitable donations carryforward 28,990 - Total deferred tax assets 2,674,199 1,820,410 Valuation Allowance (2,266,630 ) (1,567,580 ) Total net deferred tax assets 407,569 252,830 Pineapple Financial Inc. Notes to the Consolidated Financial Statements For the years ended August 31, 2023 and 2022 (Expressed in US Dollars) 10. Income taxes (continued from previous page) Deferred tax liabilities August 31, 2023 August 31, 2022 Property and equipment (41,190 ) - Right-of-use asset (254,500 ) (252,830 ) Intangible Assets (110,960 ) - Loan (919 ) - Total deferred tax liabilities (407,569 ) (252,830 ) Net deferred tax liability - - |
Right-of-use asset and lease _2
Right-of-use asset and lease liability (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Right-of-use Asset And Lease Liability | |
Schedule of Right-Of-Use Asset | The following schedule shows the movement in the Company’s right-of-use asset: Schedule of Right-Of-Use Asset Right-of-use asset Cost Balance, August 31, 2021 $ 297,723 Additions 786,800 Balance, August 31, 2022 $ 1,084,523 Additions 141,799 Translation adjustment (48,601 ) Balance, August 31, 2023 $ 1,177,721 Accumulated Depreciation Balance, August 31, 2021 $ 40,383 Depreciation 90,049 Balance, August 31, 2022 $ 130,432 Depreciation 108,335 Translation adjustment (21,423 ) Balance, August 31, 2023 $ 217,344 Carrying Amount August 31, 2022 $ 954,091 August 31, 2023 $ 960,377 |
Schedule of Lease Liability | The following schedule shows the movement in the Company’s lease liability during the year: Schedule of Lease Liability August 31, 2023 August 31, 2022 Balance, beginning of year $ 1,020,585 $ 263,238 Additions 141,799 786,800 Interest Expense 56,316 32,017 Lease payments (81,090 ) (61,470 ) Translation Adjustment (29,649 ) - Balance, end of year $ 1,107,961 $ 1,020,585 Current 138,372 2,024 Non-Current 969,589 1,018,561 $ 1,107,961 $ 1,020,585 |
Schedule of Maturity Lease Liability | The following table provides a maturity analysis of the Company’s lease liability. The amounts disclosed in the maturity analysis are the contractual undiscounted cash flows before deducting interest or finance charges: Schedule of Maturity Lease Liability 2024 $ 213,288 2025 217,856 2026 219,055 2027 216,476 2028 229,943 2029 201,891 2030 16,824 Total Lease liability $ 1,315,334 |
Expenses (Tables)
Expenses (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Schedule Of Selling General And Administrative Expenses | |
Schedule of Selling, General and Administrative Expenses | The following table provides a breakdown of the selling, general and administrative expenses: Schedule of Selling, General and Administrative Expenses August 31, 2023 August 31, 2022 Software Subscription 816,913 923,137 Marketing, Advertising and promotions 649,934 795,588 Events and award shows 194,863 - Office and generai 183,870 259,480 Professional fees 661,265 243,100 Dues and Subscriptions 58,366 174,743 Rent 165,750 150,141 Consulting fees 210,063 146,554 Travel 97,372 104,812 Donations 46,002 61,206 Lease expense 7,534 63,425 Insurance (80,934 ) 54,867 Repair and maintenance 2,489 223 Utilities 1,459 - Selling, general and administrative 3,014,945 2,977,277 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Compensation of key management personnel includes the CEO, COO, CSO, and CFO: Schedule of Related Party Transactions August 31, 2023 August 31, 2022 $ $ Salaries and Wages 522,916 776,615 Share-based compensation 28,989 410,192 |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Disaggregation Of Revenue | |
Schedule of Disaggregation of Revenue | Schedule of Disaggregation of Revenue August 31, 2023 August 31, 2022 $ $ Sales revenue 15,026,896 19,497,519 Commission expense 13,931,836 16,780,133 Net sales revenue 1,095,060 2,717,385 Subscription revenue 736,708 616,734 Other revenue 332,448 - Sponsorship revenue 189,968 - Underwriting revenue 148,080 266,731 Total revenue 2,502,264 3,600,851 |
Description of business (Detail
Description of business (Details Narrative) | Oct. 31, 2023 USD ($) |
Accounting Policies [Abstract] | |
Issuance initial public offering | $ 3,220,000 |
Schedule of estimated useful li
Schedule of estimated useful life of property and equipment (Details) | Aug. 31, 2023 |
Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Technology Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Laptops [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Schedule of estimated useful _2
Schedule of estimated useful life of intangible assets (Details) | Aug. 31, 2023 |
Accounting Policies [Abstract] | |
Intangible assets useful life | 5 years |
Significant accounting polici_4
Significant accounting policies (Details Narrative) | 1 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Aug. 31, 2023 | |
Accounting Policies [Abstract] | ||
Reverse stock split | 1-for-3.9 reverse stock split | |
Incremental borrowing rate of right of use assets | 6% | |
Income tax benefit percentage | 50% |
Investments (Details Narrative)
Investments (Details Narrative) - USD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Investment income, interest rate | 5% | ||
Write down of investments | $ 27,143 |
Schedule of property and equipm
Schedule of property and equipment (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Cost | ||
Beginning balance | $ 296,999 | $ 67,377 |
Additions | 62,073 | 249,322 |
Translation adjustment | (9,789) | (19,700) |
Ending balance | 349,283 | 296,999 |
Accumulated depreciation | ||
Beginning balance | 49,334 | 8,711 |
Depreciation | 67,674 | 42,218 |
Translation adjustment | (9,816) | (1,595) |
Ending balance | 107,192 | 49,334 |
Net carrying value | $ 242,091 | $ 247,665 |
Schedule of cost and accumulate
Schedule of cost and accumulated depreciation (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Beginning Balance | $ 779,490 | |
Additions | 1,300,225 | 803,610 |
Translation adjustment | (22,190) | (24,120) |
Ending Balance | 2,057,525 | 779,490 |
Beginning Balance | 77,102 | |
Depreciation | 265,150 | 79,489 |
Translation adjustment | (3,681) | (2,387) |
Ending Balance | 338,571 | 77,102 |
Net carrying value | $ 1,718,954 | $ 702,388 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) | Aug. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Useful life | 5 years |
Schedule of authorized share ca
Schedule of authorized share capital (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | |
Equity [Abstract] | |||
Balance, August 31, 2020 | 2,564,103 | ||
Balance, August 31, 2020 | $ 78 | ||
Issue of common shares and warrants in connection with the private placement of Units, shares | 2,836,164 | ||
Issue of common shares and warrants in connection with the private placement of Units, shares | $ 6,115,978 | ||
Issue of common shares for consulting services received, shares | 906,712 | ||
Issue of common shares for consulting services received | $ 2,833,478 | ||
Issue of warrants for consulting services received | |||
Issuance costs: paid in cash | (1,003,373) | ||
Issuance costs: paid by issuance of warrants | $ (3,043,130) | ||
Balance, August 31 | 6,306,979 | ||
Balance, August 31 | 6,306,979 | 6,306,979 | 6,306,979 |
Balance, August 31 | $ 4,903,031 | ||
Balance, August 31 | $ 4,903,031 | $ 4,903,031 | $ 4,903,031 |
Schedule of Fair Value of Warra
Schedule of Fair Value of Warrants (Details) (Parenthetical) | Dec. 31, 2021 $ / shares |
2021 Private Placement [Member] | |
Subsidiary, Sale of Stock [Line Items] | |
Share price | $ 0.27 |
Schedule of Fair Value of War_2
Schedule of Fair Value of Warrants (Details) | Apr. 21, 2021 CAD ($) | Mar. 29, 2021 CAD ($) |
Measurement Input, Share Price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement inputs | 3.94 | 1.56 |
Measurement Input, Exercise Price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement inputs | 7.29 | 2.93 |
Measurement Input, Option Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement inputs | 100 | 100 |
Measurement Input, Expected Term [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected life of the warrant | 2 years 9 months | 2 years 9 months |
Measurement Input, Expected Dividend Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement inputs | 0 | 0 |
Measurement Input, Risk Free Interest Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement inputs | 0.45 | 0.42 |
Share capital (Details Narrativ
Share capital (Details Narrative) | 12 Months Ended | ||||
Aug. 31, 2023 USD ($) $ / shares | Aug. 31, 2022 USD ($) $ / shares | Aug. 31, 2021 USD ($) $ / shares shares | Aug. 31, 2020 USD ($) | Aug. 31, 2021 $ / shares shares | |
Subsidiary, Sale of Stock [Line Items] | |||||
Proceeds from private placement | $ 430,098 | ||||
Exercise price | $ / shares | $ 3.94 | ||||
Issue of common shares for consulting services received, shares | shares | 906,712 | ||||
Fair value on issue of common shares for consulting services received | $ 2,833,478 | ||||
Cash paid | $ (1,003,373) | ||||
Issuance costs | $ 258,400 | ||||
2021 Private Placement One [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Units issued | shares | 1,548,472 | 1,548,472 | |||
Proceeds from private placement | $ 1,973,047 | ||||
Share price | $ / shares | $ 1.56 | ||||
Exercise price | $ / shares | $ 2.42 | ||||
2021 Private Placement One [Member] | Common Stock [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Exercise price | $ / shares | $ 2.93 | ||||
2021 Private Placement Two [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Units issued | shares | 1,287,692 | 1,287,692 | |||
Proceeds from private placement | $ 4,142,931 | ||||
Share price | $ / shares | $ 3.94 | ||||
Exercise price | $ / shares | $ 6.01 | ||||
2021 Private Placement Two [Member] | Warrant [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Exercise price | $ / shares | $ 7.29 | ||||
2021 Private Placement [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Units issued | shares | 2,836,164 | 2,836,164 | |||
Proceeds from private placement | $ 7,538,024 | ||||
Exercise price | $ / shares | $ 2.93 | ||||
Cash paid | $ 1,003,373 | ||||
Issuance costs | $ 788,185 | ||||
2021 Private Placement [Member] | Gravitas Securities Inc [Member] | Common Stock [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Issue of common shares for consulting services received, shares | shares | 906,712 | ||||
Fair value on issue of common shares for consulting services received | $ 2,833,478 | ||||
Issuance cost of service received deduction | 212,963 | ||||
2021 Private Placement [Member] | Gravitas Securities Inc [Member] | Common Stock Purchase Warrant [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Issuance cost of service received deduction | $ 48,747 |
Schedule of common share purcha
Schedule of common share purchase warrants reserve (Details) - USD ($) | 12 Months Ended | ||||
Aug. 31, 2021 | Jun. 14, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Common Share Purchase Warrants Reserve | |||||
Common share purchase warrants reserve, Beginning balance shares | 1,652,989 | 1,652,989 | |||
Common share purchase warrants reserve, Beginning balance | $ 2,922,853 | $ 2,199,636 | |||
Common share purchase warrants reserve, Beginning balance shares | 1,418,903 | ||||
Common share purchase warrants reserve, Beginning balance | $ 1,422,045 | ||||
Common share purchase warrants reserve, Beginning balance shares | 234,086 | ||||
Common share purchase warrants reserve, Beginning balance | $ 258,400 | ||||
Common share purchase warrants reserve, Beginning balance shares | |||||
Common share purchase warrants reserve, Beginning balance | $ 637,517 | $ 57,340 | $ 33,091 | $ 723,217 | $ 567,938 |
Common share purchase warrants reserve, Beginning balance shares | |||||
Common share purchase warrants reserve, Beginning balance | $ (48,747) | ||||
Common share purchase warrants reserve, Beginning balance shares | 1,652,989 | 1,652,989 | 1,652,989 | 1,652,989 | |
Common share purchase warrants reserve, Beginning balance | $ 2,199,636 | $ 2,955,944 | $ 2,922,853 | $ 2,199,636 |
Schedule of Warrants Outstandin
Schedule of Warrants Outstanding (Details) | 12 Months Ended |
Aug. 31, 2023 $ / shares shares | |
Common Share Purchase Warrants Reserve | |
Beginning balance | shares | |
Beginning balance | $ / shares | |
Issued during the year | shares | 1,652,988 |
Issued during the year | $ / shares | $ 3.94 |
Ending balance | shares | 1,652,988 |
Ending balance | $ / shares | $ 3.94 |
Common share purchase warrant_3
Common share purchase warrants reserve (Details Narrative) - USD ($) | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Issue of common shares and warrants in connection with the private placement of Units, shares | 234,086 | |||
Issue of warrants for consulting services received | $ 258,400 | |||
Share price | $ 3.94 | |||
Issuance costs | $ 258,400 | |||
Issuance costs and share purchase warant deduction | $ 60,122 | |||
2021 Private Placement [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Issue of common shares and warrants in connection with the private placement of Units, shares | 234,086 | |||
Issue of warrants for consulting services received | $ 258,400 | |||
Common share purchase warrant | 100,651 | |||
Share price | $ 2.93 | |||
Issuance costs | $ 788,185 | |||
2021 Private Placement One [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Common share purchase warrant | 133,435 | |||
Share price | $ 2.42 | |||
Share price | $ 7.29 |
Schedule of Options Outstanding
Schedule of Options Outstanding Granted (Details) - $ / shares | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Number of options, balance | 628,510 | 565,689 | |
Weighted average exercise price, balance | $ 3.71 | $ 3.72 | |
Number of options, granted during the year | 62,821 | ||
Weighted average exercise price, granted during the year | $ 3.82 | ||
Number of options, forfieted during year | (62,821) | ||
Weighted average exercise price, forfieted during year | $ 3.82 | ||
Number of options, balance | 565,689 | 628,510 | 565,689 |
Weighted average exercise price, balance | $ 3.72 | $ 3.71 | |
Number of options, exercisable | 565,689 | ||
Weighted average exercise price, exercisable | $ 3.72 |
Schedule of Fair Value Of Share
Schedule of Fair Value Of Share Options Granted (Details) | 12 Months Ended |
Aug. 31, 2022 $ / shares | |
Share-Based Payment Arrangement [Abstract] | |
Weighted average estimated fair value per common share | $ 3 |
Weighted average exercise price of the share option | $ 3.20 |
Weighted average expected volatility of the underlying common share | 100% |
Weighted average expected dividend yield | 5 years |
Weighted average expected dividend yield | 0% |
Weighted average risk-free interest rate | 1.48% |
Share-based benefits reserve (D
Share-based benefits reserve (Details Narrative) - USD ($) | 12 Months Ended | ||||||
Nov. 15, 2021 | Aug. 31, 2021 | Jun. 14, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Dec. 31, 2017 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Issuance percent | 10% | ||||||
Vesting period description | vest over a 2-year period whereby 25% of the options granted vested on the date of grant, and the remaining unvested options vest in equal installments every 6-months thereafter. | ||||||
Stock option granted fair value | $ 1,317,155 | ||||||
Stock-based compensation expense | $ 637,517 | $ 57,340 | $ 33,091 | $ 723,217 | $ 567,938 | ||
Stock option vested | 62,821 | ||||||
Stock option forfeited | 62,821 | ||||||
Chief Financial Officer [Member] | |||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||
Stock option granted fair value | $ 141,885 | ||||||
Stock-based compensation expense | $ 85,700 | ||||||
Stock option granted | 63,821 | ||||||
Stock option vested | 8,974 | ||||||
Stock option forfeited | 24,250 |
Schedule of Federal and State I
Schedule of Federal and State Income Tax Rate (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
(Loss) before recovery of income taxes | $ (2,809,037) | $ (2,810,061) |
Expected income tax (recovery) expense | (744,395) | (744,670) |
Non-deductible expenses | 45,338 | 197,240 |
Valuation Allowance | 699,057 | 547,430 |
Income tax expense (recovery) |
Schedule of Deferred Income Tax
Schedule of Deferred Income Taxes (Details) - USD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Deferred tax assets | ||
Property and equipment | $ 18,760 | |
Intangible assets | 26,820 | |
Finance lease liabilities | 293,610 | 270,460 |
Investments | 3,930 | |
Share issuance costs | 435,920 | 651,140 |
Operating tax losses carried forward | 1,844,180 | 853,230 |
SR&ED Pool from T661 | 67,569 | |
Charitable donations carryforward | 28,990 | |
Total deferred tax assets | 2,674,199 | 1,820,410 |
Valuation Allowance | (2,266,630) | (1,567,580) |
Total net deferred tax assets | 407,569 | 252,830 |
Property and equipment | (41,190) | |
Right-of-use asset | (254,500) | (252,830) |
Intangible Assets | (110,960) | |
Loan | (919) | |
Total deferred tax liabilities | (407,569) | (252,830) |
Net deferred tax liability |
Income taxes (Details Narrative
Income taxes (Details Narrative) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Tax rate percentage | 26.50% | 26.50% |
Schedule of Right-Of-Use Asset
Schedule of Right-Of-Use Asset (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Right-of-use Asset And Lease Liability | ||
Beginning balance, Cost | $ 1,084,523 | $ 297,723 |
Additions | 141,799 | 786,800 |
Translation adjustment | (48,601) | |
Ending balance, Cost | 1,177,721 | 1,084,523 |
Beginning balance, Accumulated Depreciation | 130,432 | 40,383 |
Depreciation | 108,335 | 90,049 |
Translation adjustment | (21,423) | |
Ending balance, Accumulated Depreciation | 217,344 | 130,432 |
Right-of-use asset | $ 960,377 | $ 954,091 |
Schedule of Lease Liability (De
Schedule of Lease Liability (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Right-of-use Asset And Lease Liability | ||
Balance, beginning of year | $ 1,020,585 | $ 263,238 |
Additions | 141,799 | 786,800 |
Interest Expense | 56,316 | 32,017 |
Lease payments | (81,090) | (61,470) |
Translation Adjustment | (29,649) | |
Balance, end of year | 1,107,961 | 1,020,585 |
Current | 138,372 | 2,024 |
Non-Current | 969,589 | 1,018,561 |
Lease liability | $ 1,107,961 | $ 1,020,585 |
Schedule of Maturity Lease Liab
Schedule of Maturity Lease Liability (Details) | Aug. 31, 2023 USD ($) |
Right-of-use Asset And Lease Liability | |
2024 | $ 213,288 |
2025 | 217,856 |
2026 | 219,055 |
2027 | 216,476 |
2028 | 229,943 |
2029 | 201,891 |
2030 | 16,824 |
Total Lease liability | $ 1,315,334 |
Right-of-use asset and lease _3
Right-of-use asset and lease liability (Details Narrative) | 12 Months Ended |
Aug. 31, 2023 | |
Right-of-use Asset And Lease Liability | |
Lease liability description | The Company extended the current Ontario premises of 4,894 sq. ft. lease to January 1, 2030, and acquired additional premises of 8,368 square feet adjacent to the current office premises with the same landlord. The additional premises lease also expires on January 1, 2030. The total area of use by The Company is 13,262 sq. ft. The Company acquired a 1,454 square feet premise lease in British Columbia commencing August 1, 2023 and expiring on July 31, 2028. The Company recognized a right-of-use asset and corresponding lease liability in respect of this lease. The lease liability was measured at the present value of the remaining lease payments, discounted using the Company’s estimated incremental borrowing rate as at September 1, 2017 (date of initial application), estimated to be 6%. The right-of-use asset was measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the interim condensed balance sheet immediately before the date of initial application. |
Schedule of Selling, General an
Schedule of Selling, General and Administrative Expenses (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Schedule Of Selling General And Administrative Expenses | ||
Software Subscription | $ 816,913 | $ 923,137 |
Marketing, Advertising and promotions | 649,934 | 795,588 |
Events and award shows | 194,863 | |
Office and generai | 183,870 | 259,480 |
Professional fees | 661,265 | 243,100 |
Dues and Subscriptions | 58,366 | 174,743 |
Rent | 165,750 | 150,141 |
Consulting fees | 210,063 | 146,554 |
Travel | 97,372 | 104,812 |
Donations | 46,002 | 61,206 |
Lease expense | 7,534 | 63,425 |
Insurance | (80,934) | 54,867 |
Repair and maintenance | 2,489 | 223 |
Utilities | 1,459 | |
Selling, general and administrative | $ 3,014,945 | $ 2,977,277 |
Deferred government grant (Deta
Deferred government grant (Details Narrative) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Deferred Government Grant | ||
Accrued receivable | $ 710,320 | |
Deferred government grant | 699,627 | |
Government based incentive | $ 591,480 |
Schedule of Related Party Trans
Schedule of Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||||
Aug. 31, 2021 | Jun. 14, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Share-based compensation | $ 637,517 | $ 57,340 | $ 33,091 | $ 723,217 | $ 567,938 |
Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Salaries and Wages | 522,916 | 776,615 | |||
Share-based compensation | $ 28,989 | $ 410,192 |
Schedule of Disaggregation of R
Schedule of Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Sales revenue | $ 15,026,896 | $ 19,497,519 |
Commission expense | 13,931,836 | 16,780,133 |
Net sales revenue | 1,095,060 | 2,717,385 |
Total revenue | 2,502,264 | 3,600,851 |
Subscription Revenue [Member] | ||
Total revenue | 736,708 | 616,734 |
Other Revenue [Member] | ||
Total revenue | 332,448 | |
Sponsorship Revenue [Member] | ||
Total revenue | 189,968 | |
Underwriting Revenue [Member] | ||
Total revenue | $ 148,080 | $ 266,731 |
Loan (Details Narrative)
Loan (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Aug. 31, 2023 | |
Debt Disclosure [Abstract] | ||
Debt instrument term | one-year term | |
Maturity date | Jul. 31, 2024 | |
Loan amount | $ 430,098 | |
Interest rate percentage | 12% | |
Advance fee, percentage | 2% | |
Accretion expense | $ 8,643 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | 12 Months Ended |
Aug. 31, 2023 USD ($) shares | |
Subsequent Events [Abstract] | |
Initial public offering, shares | shares | 875,000 |
Gross proceeds | $ | $ 3,220,000 |