Pineapple Express Cannabis Co., a company focused on strategic investments and operations in the legal cannabis and consumer product industries, has released its annual 10-K report. The report details the company’s financial performance, business operations, strategic initiatives, and the challenges it faces in a complex regulatory environment. The company, originally incorporated as Minaro Corp. in Nevada, has undergone significant changes, including a name change and restructuring, and is now based in Los Angeles, California, with a principal executive office in Atlanta, Georgia.
Financial Highlights
Total Revenue: $16,168. The company recognized a bad debt expense of $14,204, indicating that most revenues were uncollectible.Net Loss: $31,153. The net loss decreased from the previous year, reflecting a reduction in operating expenses.Basic and Diluted Loss Per Share: $0.00. This reflects the net loss per share for the year ended January 31, 2025.
Business Highlights
Corporate History and Structure: Pineapple Express Cannabis Co. underwent significant changes, including a name change and restructuring following a share exchange agreement with Pineapple Consolidated, Inc. (PCI). The company now focuses on strategic investments and operations in the legal cannabis and consumer product industries.Business Operations: The company is involved in strategic investments, advisory services, and direct operations within the legal cannabis and consumer product sectors. It aims to identify and develop early-stage companies in these industries, providing both capital and operational guidance.Divestment from Cannabis Retail: As of January 30, 2025, Pineapple Express divested its entire equity interest in PCI, marking a strategic shift away from direct cannabis retail operations to reduce regulatory exposure.Acquisition of GROOVY Company, Inc.: On March 5, 2025, the company acquired a majority voting interest in GROOVY Company, Inc., a developer of a blockchain-based Platform as a Service (PaaS) for the cannabis industry. This acquisition marks the company’s entry into blockchain-driven authentication and supply chain transparency.GROOVY Platform Features: The GROOVY platform offers NFT-based QR code authentication, a genetic library for intellectual property registration, verified product provenance, a consumer-facing mobile app, and integration with inventory and compliance systems.Principal Executive Office: The company’s principal executive office is located in Atlanta, Georgia, with an operational office in Bogotá, Colombia, reflecting a shift towards a more flexible work model.Regulatory Overview: The company operates in a complex regulatory environment, with cannabis remaining a Schedule 1 drug under federal law despite legalization in several states. The company must comply with all applicable regulations and does not anticipate any material impact from existing or probable government regulations.Future Outlook: The company plans to focus on technology and consumer-facing ventures, leveraging its acquisition of GROOVY to enhance its position in the cannabis industry through blockchain and authentication technology.
Strategic Initiatives
Strategic Initiatives: Pineapple Express Cannabis Co. has strategically acquired GROOVY Company, Inc., a technology firm specializing in blockchain-based supply chain management for the cannabis industry. This acquisition is intended to enhance the company’s position in the cannabis sector by integrating advanced transparency tools and consumer protection systems. The company is also focusing on developing cannabis-related business ventures, including brand development and intellectual property licensing.Capital Management: The company generated $45,001 in cash from financing activities through the sale of common stock. It also canceled 1,000,000 shares of common stock and issued 90,000 shares, resulting in cash proceeds of $45,000. As of January 31, 2025, the company had 19,834,550 shares of common stock issued and outstanding. The company has not paid any cash dividends during the fiscal years ended January 31, 2025, and 2024.Future Outlook: Management plans to address liquidity challenges by pursuing additional financing through equity or debt securities and strategic partnerships. The company aims to commercialize blockchain and authentication technology in existing cannabis distribution networks. However, there is substantial doubt about the company’s ability to continue as a going concern due to limited cash resources and recurring losses. The company is exploring business realignments to improve operational efficiency and extend its cash runway.
Challenges and Risks
Regulatory Risks: The company faces substantial regulatory risks due to the federal illegality of cannabis, which could impact its ability to operate and enforce contracts. The rescission of the Cole Memo and potential changes in federal enforcement policies under different administrations add uncertainty.Operational Risks: The company may struggle with banking and insurance challenges due to its association with the cannabis industry, which could hinder operations and increase financial liabilities. The industry’s immaturity and lack of established best practices pose further operational risks, as does the potential for increased competition from well-funded industries like pharmaceuticals.Financial Challenges: The company reported a net loss for the fiscal year, highlighting financial challenges. The divestment from PCI and the acquisition of GROOVY indicate a strategic pivot, but the company faces liquidity issues and substantial doubt about its ability to continue as a going concern. Management acknowledges the need for additional capital and the challenges posed by lower capital investment trends in start-up companies.Market Risks: The company did not provide specific quantitative and qualitative disclosures about market risk, but the overall context suggests exposure to market volatility and regulatory changes that could impact financial performance.
SEC Filing: PINEAPPLE EXPRESS CANNABIS Co [ PNXP ] – 10-K – May. 15, 2025
Pineapple Express Cannabis Co., a company focused on strategic investments and operations in the legal cannabis and consumer product industries, has released its annual 10-K report. The report details the company’s financial performance, business operations, strategic initiatives, and the challenge… Read More
