PINEAPPLE EXPRESS CANNABIS Co Liquidation Value

PINEAPPLE EXPRESS CANNABIS Co (PNXP) presents a deeply negative liquidation posture as of October 31, 2025. Total assets per the balance sheet are $190,000, consisting entirely of an intangible asset (intellectual property acquired for $190,000 in the current fiscal year). Under the liquidation lens, intangibles receive a 0% recovery haircut, yielding zero recoverable asset value. Current assets are $0 and cash is $0. Against this, total liabilities stand at $8,344,100, all classified as current, producing a liquidation recovery to equity of negative $8.34 million. The MFFAIS-computed CLV/LLV/OLV of -$10.2 million is directionally consistent, with the gap attributable to methodology differences on the derivative liability and accrued interest treatment.

The liability stack is dominated by three components: convertible notes payable (current) of $3,723,597; derivative liabilities (current) of $3,050,762; and accrued interest of $1,259,673. Accounts payable and accrued expenses add $192,568 and accrued bonuses $112,500. All convertible notes are in cross-default, with the filing disclosing a statutory 200% default principal of $1,862,690 against a face carrying amount of $1,860,907. The derivative liability of $3.05 million arose during the current period from $0 at January 31, 2025, driven by the GROOVY acquisition which brought in GROOVY's convertible notes with embedded conversion features priced at the lower of 75% of issuance price or 50% of the 30-day lowest bid. Accrued interest jumped from $0 to $1,259,673 over the nine-month period. No cash interest was paid; all accrual is non-cash. The Company generated $0 in revenue for the nine months ended October 31, 2025. Nine-month net loss was $622,176, against $572 in the comparable period, representing a step-change driven entirely by the GROOVY acquisition and its associated debt load. Stockholders' deficit is $8,154,100. The filing discloses a going concern qualification. The balance sheet does not separately tag goodwill from the GROOVY acquisition; the GROOVY transaction is reflected only through the derivative liability, assumed convertible notes, and an equity adjustment to additional paid-in capital of negative $6,901,877, all of which are XBRL-tagged. The $190,000 intangible (GROOVY Platform IP) is the sole tangible asset on the book; its liquidation recovery is zero.