Pineapple Financial Inc. Goodwill & Intangibles Disclosure
6. Intangible Assets
The intangible assets additions in current year are related to development costs capitalized for internally generated software with a useful life of 5 years.
| Intangible assets | ||||
| Cost | ||||
| Balance, August 31, 2021 | $ | |||
| Additions | 803,610 | |||
| Translation adjustment | (24,120 | ) | ||
| Balance, August 31, 2022 | $ | 779,490 | ||
| Additions | 1,300,225 | |||
| Translation adjustment | (22,190 | ) | ||
| Balance, August 31, 2023 | $ | 2,057,525 | ||
| Accumulated depreciation | ||||
| Balance, August 31, 2021 | $ | |||
| Depreciation | $ | 79,489 | ||
| Translation adjustment | (2,387 | ) | ||
| Balance, August 31, 2022 | $ | 77,102 | ||
| Depreciation | $ | 265,150 | ||
| Translation adjustment | (3,681 | ) | ||
| Balance, August 31, 2023 | $ | 338,571 | ||
| Net carrying value | ||||
| August 31, 2022 | $ | 702,388 | ||
| August 31, 2023 | $ | 1,718,954 | ||
Pineapple Financial Inc.
Notes to the Consolidated Financial Statements
For the years ended August 31, 2023 and 2022
(Expressed in US Dollars)
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.