Pineapple Express Reports Modest Revenue Growth Amid Ongoing Losses

Pineapple Express Cannabis Company reported its financial results for the three and nine months ended October 31, 2024, revealing a modest revenue generation of $4,332 for the quarter, a significant increase from zero revenue in the same period last year. For the nine months, the company recorded total revenues of $16,168, compared to no revenues in the prior year. Despite this revenue growth, Pineapple Express continues to face challenges, posting a net loss of $1,248 for the third quarter and a cumulative loss of $572 for the nine months, although these figures represent improvements from losses of $2,115 and $934,669, respectively, in the previous fiscal period.

The company’s operating expenses for the third quarter were reported at $5,580, a decrease from $19,247 in the same quarter of 2023. This reduction is attributed to lower legal and audit fees, which were previously elevated due to the company's acquisition activities. The overall operating loss for the quarter was $1,248, a notable improvement from the $2,115 loss reported in the same quarter last year. The company’s financial position remains precarious, with an accumulated deficit of $924,146 as of October 31, 2024, and cash reserves of $1,043.

Pineapple Express is actively pursuing strategic growth through its subsidiary, Ananas Growth Ventures, which supports early-stage cannabis ventures. The company is also expanding its footprint in California through its 50% owned equity method investee, Pineapple Consolidated Inc. (PCI), which operates retail cannabis ventures. The company has entered into management contracts with eight entities, allowing it to share in revenue generated from these partnerships. Additionally, Pineapple Express has executed a revenue share agreement with PCI, which is expected to enhance its revenue streams.

Operationally, the company has not reported significant changes in customer counts or user statistics, but it is focused on geographic expansion within California and potentially into underdeveloped markets. The company’s employee headcount remains stable, and it continues to rely on debt and equity financing to support its operations. The management has indicated that it anticipates ongoing operating losses in the near term, emphasizing the need for additional investment capital to sustain its business activities.

Looking ahead, Pineapple Express Cannabis Company acknowledges the uncertainty surrounding its financial viability and the challenges posed by market conditions. The management plans to seek additional financing through capital markets to support its operations and growth initiatives. However, there are no assurances that the company will successfully secure the necessary funding or achieve profitability in the future, as it navigates the complexities of the evolving cannabis industry.