Pineapple Express Cannabis Company reported a total revenue of $16,168 for the fiscal year ending January 31, 2025, a significant increase from $0 in the previous year. However, the company recognized a bad debt expense of $14,204, indicating that most of the revenue was deemed uncollectible. The total operating expenses for the year were $33,025, which included general and administrative costs of $18,821 and a loss of $14,296 from the sale of its remaining interest in Pineapple Consolidated, Inc. (PCI). The net loss for the year was $31,153, a decrease from the $59,497 loss reported in the prior fiscal year.
In a strategic shift, Pineapple Express divested its entire equity interest in PCI on January 31, 2025, selling it to Matthew Feinstein, the company's then-CEO, for a $3 million reduction in a promissory note owed to the company. This decision was part of a broader strategy to reduce regulatory exposure associated with direct participation in cannabis operations. Following this divestiture, the company announced the acquisition of a majority interest in GROOVY Company, Inc. on March 5, 2025. GROOVY is a technology firm that has developed a blockchain-based platform aimed at enhancing transparency and authenticity in the cannabis supply chain.
Operationally, the company has faced challenges, including a working capital deficit of $2,079 and an accumulated deficit of $673,646 as of January 31, 2025. The company reported a cash balance of $0 at the end of the fiscal year, raising substantial doubt about its ability to continue as a going concern. Management plans to address these issues through the integration of GROOVY's technology, pursuing additional financing, and improving operational efficiency.
The company has also undergone significant changes in leadership, with Franjose “Frank” Yglesias appointed as the new CEO following a change in control in February 2025. The acquisition of GROOVY is expected to enhance the company's position within the regulated cannabis industry by integrating advanced technology solutions. However, the company acknowledges the inherent risks associated with the evolving cannabis market, including regulatory uncertainties and competitive pressures, which could impact future performance.
About PINEAPPLE EXPRESS CANNABIS Co
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