Mon, Jun 23, 9:24 PM (21 days ago)
**Summary of Pineapple Express Cannabis Co (PEXP) Q1 2025 Form 10-Q** **Financial Health and Performance:** - **Revenue:** No revenue generated for Q1 2025 and Q1 2024. - **Net Loss:** Increased significantly to $659,293 for Q1 2025 from $3,616 in Q1 2024. - **Operating Expenses:** Rose to $184,594 in Q1 2025 from $5,580 in Q1 2024, including management fees, stock for services, professional fees, and administrative costs. - **Cash Flow:** Despite no cash on hand, operating activities generated $936,871, primarily due to changes in liabilities and derivative value adjustments. - **Liabilities:** Total liabilities amounted to $8,396,980, including convertible notes, accrued interest, and derivative liabilities. - **Stockholders' Deficit:** Increased to $8,206,980, with 24,834,550 common shares outstanding. **Key Trends and Uncertainties:** - **Going Concern:** The company faces substantial doubt about its ability to continue as a going concern due to lack of revenue and increasing losses. - **Liquidity:** Relies on borrowing and shareholder support to meet obligations. - **Operational Challenges:** Struggles with generating revenue and managing increasing operational costs. **Future Operations and Impact:** - **Acquisition:** Acquired GROOVY Company, Inc., a technology firm focused on cannabis industry data analytics, which may impact future operations. - **Related Party Transactions:** Engaged in significant transactions with related parties, including the sale of an investment in Pineapple Consolidated, Inc. - **Regulatory and Market Risks:** Faces risks related to regulatory changes, market volatility, and the uncertain nature of the cannabis industry. **Conclusion:** Pineapple Express Cannabis Co reported significant financial challenges in Q1 2025, with increasing losses and no revenue generation. The company's ability to continue operations is uncertain, and it relies on external funding to meet its obligations. The acquisition of GROOVY Company, Inc., may present future opportunities but also introduces additional complexities and risks.