Pineapple Express Reports No Revenue and Significant Losses in Latest Quarter

Pineapple Express Cannabis Company reported significant financial challenges in its latest 10-Q filing for the quarter ending April 30, 2025. The company recorded no revenue during this period, a stark contrast to the $1,964 generated in the same quarter of the previous year. Operating expenses surged to $184,594, up from just $5,580 a year earlier, primarily due to management fees of $112,500 and professional fees of $68,249. The net loss for the quarter was $659,293, compared to a loss of $3,616 in the prior year, reflecting a substantial increase in operational costs without corresponding revenue.

The company’s balance sheet shows a working capital deficit of $8,396,980 as of April 30, 2025, which is a significant increase from the previous period. Total liabilities rose dramatically to $8,396,980, up from $2,079, largely due to accrued interest and convertible notes payable. The accumulated deficit also increased to $1,332,939, indicating ongoing financial strain. The company has not generated sufficient cash flow from operations and has relied on capital from public and private offerings to meet its obligations.

Strategically, Pineapple Express made a notable acquisition by obtaining a controlling interest in GROOVY Company, Inc. on March 5, 2025. This transaction involved the exchange of 5,000,000 shares of common stock for 350,000,000 shares of Series A Preferred Stock of GROOVY, which is now a majority-owned subsidiary. This acquisition is expected to enhance the company's capabilities in the cannabis market through GROOVY's blockchain-based platform, which focuses on supply chain management and market intelligence.

Operationally, the company has faced challenges in maintaining effective internal controls, as highlighted in the filing. Management acknowledged material weaknesses in its internal control over financial reporting, including inadequate cash controls and the absence of an audit committee. These deficiencies raise concerns about the reliability of financial reporting and the company's ability to manage its operations effectively. The company has also indicated that it will require additional funding to continue its operations and pursue its business objectives.

Looking ahead, Pineapple Express has expressed uncertainty regarding its ability to continue as a going concern without securing additional capital. The management's plans include seeking funding from shareholders and other sources to cover operating losses. However, the company has cautioned that there are no guarantees of success in these efforts, and the ongoing lack of revenue generation poses significant risks to its future viability.