Current Status: Pre-application assessment complete, requirements mapping finalized
Financial Requirements Status:
- Stockholders' equity threshold: $15M (Nasdaq Global Select requirement)
- Current position: $18.7M (125% of requirement)
- Market value of publicly held shares: $70M+ (requirement for Global Select)
- Current projection: $84.3M based on TSX valuation
- Minimum bid price requirement: $4.00 per share
- Current trading range: $5.20-$6.40 on TSX
- Liquidity requirements: 450+ shareholders, 1.25M+ publicly held shares
- Current position: 520+ shareholders, 1.8M+ publicly held shares
Governance Requirements Implementation:
- Board composition compliance with Nasdaq rules achieved:
- Independent director majority established
- Audit committee with 3 financially literate independent directors
- Compensation committee with 2 independent directors
- Nomination committee with 2 independent directors
- Corporate governance guidelines formalized and published
- Code of ethics implemented for directors, officers and employees
- Disclosure controls and procedures documentation finalized
- Related party transaction policy enhanced to Nasdaq standards
Technical & Operational Readiness:
- Nasdaq-compliant financial reporting system implemented
- SOX 404 compliance documentation complete
- XBRL financial reporting capabilities deployed
- Investor relations platform upgraded to Nasdaq standards
- Shareholder communications program enhanced
- Market making relationships established with 3 Nasdaq participants
US Cannabis Compliance Strategy:
- Legal opinion secured on federal/state compliance framework
- Plant-touching vs. technology service provider classification documentation
- Blockchain verification focus positioning established
- Technology licensing structure for US operations finalized
- Interstate commerce verification preparation complete
Next Milestone: Submit initial confidential application for Nasdaq listing by Week 3
Current Status: Pre-audit preparation in progress, reporting framework finalized
Financial Highlights (Projected Year-End):
- Annual revenue: $42.8M (389% YoY growth)
- Gross margin: 72% (increase from 68% previous year)
- EBITDA: $15.3M (35.7% margin)
- Net income: $9.8M (first full year of profitability)
- Cash position: $24.5M (excluding financing activities)
Revenue Composition:
- Transaction verification fees: $12.8M (30%)
- Platform subscription revenue: $14.2M (33%)
- Analytics as a Service: $10.7M (25%)
- Professional services: $3.4M (8%)
- Partner ecosystem revenue share: $1.7M (4%)
USOTC Reporting Requirements:
- Audited financial statements for two fiscal years
- Status: 2025 audit complete, 2026 in preparation
- Management discussion and analysis
- Status: Draft complete, pending final year-end figures
- Corporate governance disclosures
- Status: Documentation complete per OTCQX requirements
- Beneficial ownership reporting
- Status: Current reporting compliant, year-end update scheduled
- Timely disclosure of material events
- Status: Disclosure controls implemented and tested
OTCQX Compliance Enhancement:
- Blue Sky compliance status across 38 states
- International disclosure standards implementation
- Enhanced corporate governance framework documentation
- Verified profile through OTC Markets
- Real-time level 2 quote compliance
Audit Process Status:
- Pre-audit data preparation: 85% complete
- Technical accounting memos: 92% complete
- Internal control documentation: 100% complete
- Revenue recognition verification: 80% complete
- Blockchain transaction validation methodology: Implemented and tested
Next Milestone: Complete pre-audit package for external auditors by Week 6
Current Status: Pre-audit preparation in progress, TSX reporting enhancements implemented
Financial Highlights (Same as USOTC, with Canadian Reporting Emphasis):
- Annual revenue: C$57.8M (389% YoY growth)
- Gross margin: 72% (increase from 68% previous year)
- EBITDA: C$20.7M (35.7% margin)
- Net income: C$13.2M (first full year of profitability)
- Cash position: C$33.1M (excluding financing activities)
TSX-Specific Reporting Requirements:
- National Instrument 51-102 compliance
- Status: Reporting framework implemented and tested
- International Financial Reporting Standards (IFRS) compliance
- Status: IFRS-based accounting policies implemented
- Canadian securities continuous disclosure obligations
- Status: Disclosure controls enhanced for Canadian requirements
- Management information circular preparation
- Status: Template finalized, pending year-end data
- Annual information form development
- Status: Draft complete, pending final year-end figures
Canadian Cannabis Industry Positioning:
- Canadian market revenue: C$6.4M (11% of total)
- Canadian partner network: 47 businesses
- Cross-border verification transactions: 780,000+
- Provincial regulatory compliance documentation: Complete for 5 provinces
- Canadian intellectual property protection: Patent applications filed
Audit Process Status (Canadian Requirements):
- Canadian Public Accountability Board (CPAB) auditor engagement complete
- Canadian Securities Administrators (CSA) disclosure review conducted
- Management certification process implemented (52-109 compliance)
- Related party transaction documentation enhanced for Canadian requirements
- Non-GAAP to GAAP reconciliation framework implemented
Dual-Market Reporting Optimization:
- Harmonized reporting calendar for US and Canadian filings
- Consolidated audit approach with jurisdiction-specific supplements
- Single financial data repository with multi-standard reporting capability
- Blockchain verification of financial data integrity across markets
- Transparent reporting of cross-border operations and currency impacts
Next Milestone: Complete Canadian Reporting Entity documentation for TSX audit by Week 7
The simultaneous preparation for NASDAQ listing while maintaining compliance with USOTC and TSX reporting requirements represents a significant evolution in Pineapple Express's capital markets strategy. This tri-market approach creates unprecedented access to both traditional and innovative investment capital across multiple jurisdictions.
Strategic Financial Positioning:
- Technology valuation multiples access through NASDAQ
- Cannabis industry leadership position in Canadian market
- Blockchain verification specialization differentiating from traditional cannabis stocks
- Multi-market liquidity enhancing investor access and share value
Blockchain-Enhanced Financial Reporting:
- Transaction verification creating immutable audit trail
- Smart contract revenue recognition with automated compliance
- Transparent partner ecosystem revenue sharing through blockchain accounting
- Real-time financial metrics with blockchain verification
- Investor trust enhancement through authenticated financial data
Cannabis-Tech Crossover Narrative:
- Software valuation metrics applicable through verification focus
- Cannabis market size creating substantial addressable market
- Blockchain technology differentiation from traditional operators
- Data analytics recurring revenue model attracting technology investors
- Verification ecosystem moat creating sustainable competitive advantage
Week 1-3:
- Finalize Nasdaq listing requirement documentation
- Complete year-end financial forecasting
- Prepare audit planning documentation for both markets
- Submit initial confidential application for Nasdaq listing
Week 4-6:
- Conduct internal pre-audit reviews for USOTC and TSX requirements
- Complete pre-audit package for external auditors
- Develop NASDAQ listing communication strategy
- Enhance investor relations materials for multi-market presence
Week 7-9:
- Complete Canadian Reporting Entity documentation
- Begin formal audit process for year-end financials
- Address initial feedback from Nasdaq application
- Prepare Q4 earnings release for dual-market reporting
Week 10-13:
- Finalize audited financial statements for USOTC and TSX
- Complete management discussion and analysis
- Prepare annual information form for TSX
- Develop 2027 financial guidance for three-market strategy
Q4 2026 represents the culmination of Pineapple Express's evolution from cannabis technology startup to multi-market public company with unprecedented access to capital across borders and investor categories. The company's unique position at the intersection of cannabis, blockchain, and data analytics creates a compelling investment narrative that transcends traditional industry classifications.
The NASDAQ listing preparation establishes access to the deepest technology investment capital pool globally, while the TSX presence maintains leadership in the Canadian cannabis ecosystem. This dual-market strategy creates natural hedging against regulatory changes in either jurisdiction while maximizing investor access.
The blockchain verification foundation of the business creates a unique financial reporting advantage, with immutable transaction records enhancing audit efficiency and investor trust. This technological differentiation positions Pineapple Express in the higher-multiple technology sector rather than the more constrained cannabis valuation environment.
As we conclude 2026, Pineapple Express stands at the forefront of cannabis verification globally, with a financial structure that reflects the company's technological leadership and market penetration. The forthcoming NASDAQ listing represents the final piece in establishing the company as the preeminent cannabis authentication platform with a financial profile as robust as its technological foundation.
The multi-market strategy creates unprecedented flexibility for future capital raises, strategic acquisitions, and global expansion - ensuring that verification becomes the foundation of trusted cannabis commerce worldwide while delivering exceptional shareholder value.