Pineapple Financial Inc. 10-K

Item 7A. Quantitative and Qualitative Disclosures about Market Risk As part of our regular business operations, we face various risks that can impact our profitability and operations. These risks can be broadly categorized as interest rate risk, credit risk, counterparty risk, and risks associated with the pandemics like COVID-19. Interest rate risk We do not face interest rate risk as we do not have any variable-rate loans or borrowings. 52 Credit risk Credit risk is the risk of financial loss to the Corporation if a counterparty to a financial instrument fails to meet its contractual obligations. The Corporation’s credit risk is mainly attributable to its cash and trade and other receivables. The Corporation has determined that its exposure to credit risk on its cash is minimal as the Corporation’s cash is held with financial institutions in Canada. Our primary source of credit risk relates to the possibility of Core Business Operation’s brokerages or other customers not paying receivables. Core Business Operations manages its credit risk by performing credit risk evaluations on its brokerages and agents and monitoring overdue trade and other receivables. As of August 31, 2025, $64,163 of our trade receivables are greater than 90 days outstanding, as compared to $33,942 for August 31, 2024. A decline in economic conditions or other adverse conditions experienced by brokerage and agents could impact the collectability of the Corporation’s accounts receivable. Our maximum exposure to credit risk approximates the carrying value of the assets on the Corporation’s consolidated statements of financial position. Year Ended August 31, 2025 ($) August 31, 2024 ($) Cash 2,117,371 580,356 Trade and other receivables 92,223 155,224 Prepaid expenses and deposit 110,001 157,910 2,319,595 893,491 Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s approach in managing liquidity is to ensure, to the extent possible, that it will have sufficient liquidity to meet its liabilities when due, by continuously monitoring actual and forecasted cash flows. As of August 31, 2025, the Company’s contractual cash flow obligations and their maturities are as follows: Cash flow under contract ($) Within 1 year Greater than 1 year ($) Accounts payable and accrued liabilities 2,125,160 2,125,160 - Lease obligations 699,959 138,859 561,100 Loan 629,120 629,120 53