Pineapple Express Cannabis Company, headquartered in Los Angeles, California, reported significant financial developments in its 10-Q filing for the period ending July 31, 2024. The company recorded total current assets of $9.9 million and total assets of $3.0 million, a substantial increase from $1,870 as of January 31, 2024. Current liabilities surged to $2.98 million, up from $17,797 in the previous period, primarily due to a related party loan of $2.97 million.

For the three months ended July 31, 2024, Pineapple Express generated revenues of $9,872, a notable increase from $0 in the same period in 2023, attributed to management fee revenue. However, the company reported an operating loss of $4,292, a significant improvement from the loss of $19,247 in the prior year. For the six-month period, revenues totaled $11,836, with an operating loss of $676, compared to a loss of $48,953 in the same period in 2023.

Net income for the three months ended July 31, 2024, was $4,292, contrasting sharply with a net loss of $613,913 in the same quarter of 2023. For the six months, net income was $676, down from $793,507 in the previous year. The company’s total stockholders’ equity improved to $29,749 from a deficit of $(15,927) as of January 31, 2024.

Pineapple Express has also made strategic moves, including a revenue-sharing agreement effective April 20, 2024, with Pineapple Consolidated Inc. (PCI), which operates retail cannabis stores. Under this agreement, Pineapple Express will receive half of a 10% management fee from PCI's revenue-sharing agreements with eight entities. The company has a promissory note of $5 million at 1% interest, maturing in 2029, which was reduced by $2 million in August 2024.

Despite these developments, the company faces challenges, including an accumulated deficit of $922,898 and no cash on hand as of July 31, 2024. Pineapple Express anticipates needing additional investment capital to fund operating expenses and plans to raise funds through capital markets. The company has financed its operations primarily through debt and equity issuance and expects to incur operating losses in the next 12 months.