“We appreciate the patience and support of our shareholders as we worked through our recent cybersecurity incident. Our priority was to ensure the integrity of our IT systems, business continuity and financial reporting, and we are pleased to confirm that this review has been successfully completed. With this behind us, we are looking forward to executing on our strategy and delivering on the next phase of our business objectives.
Turning to our financial results, the past year has been a defining one for Westport, marked by the successful divestiture of our Light-Duty business, the recent receipt of a
The global heavy-duty transportation market is increasingly recognizing natural gas as a practical, lower-emission solution available today. This is evidenced by Volvo’s recent milestone of delivering more than 10,000 natural gas trucks on the road underscoring the accelerating adoption of Cespira's HPDI fuel system technology and validates the strategic direction we have taken. From a market perspective, the
When we introduced our proprietary CNG fuel storage and delivery system designed for Cespira's HPDI's on-engine components several months ago, we emphasized its potential to significantly expand our addressable market. Development has progressed well, and our confidence in the commercial opportunity continues to build. We look forward to showcasing this solution at the upcoming Advanced Clean Transportation (ACT) Expo, where we will engage with industry partners and customers. By integrating advanced high-pressure CNG storage with Cespira’s field-proven HPDI fuel system, we match the performance and operational range expected from diesel engines with compelling economics in markets where CNG is the natural choice, particularly in
Our GFI brand, through our High Pressure Controls business, has also delivered important operational milestones. The opening of our new production facilities in
As the transportation industry continues to balance economic realities with sustainability objectives, we are confident that alternative fuel systems including Cespira's HPDI technology, and our high-pressure components provide real-world solutions that deliver both performance and affordability. With the completion of our strategic transition and only a few milestones remaining, a growing market validation of Cespira’s expansion, and a clear strategic focus, Westport is excited to drive into this next phase.”
2025 Highlights
- On
July 29, 2025 , Westport sold its Light-Duty segment to a wholly-owned vehicle of Heliaca Investments Coöperatief U.A. (“Purchaser"), aNetherlands based investment firm supported byRamphastos Investments B.V. , a Dutch venture capital and private equity firm, for total consideration of$60.0 million . - On
October 14, 2025 , Westport announced that its joint venture with the Volvo Group, Cespira, signed an agreement to supply components for a customer truck trial with a second OEM. - On
November 6, 2025 , Westport revealed a proprietary CNG solution that leverages advanced high-pressure storage technology, designed to deliver the performance required for Cespira's HPDI fuel system. This breakthrough enables faster time-to-market for CNG-powered HPDI applications and prioritizes reduced lifecycle costs by optimizing system design. Field testing for Westport’s CNG solution is expected to being in 2026, with the path to commercialization expected to follow. - Revenues for the year ended
December 31, 2025 decreased by 43% to$23.3 million compared to$40.7 million in the prior year. The decrease was primarily driven by the end of the transitional service agreement between Westport and Cespira to provide inventory and contract manufacturing in Q2 2025 in our Heavy-Duty OEM segment, resulting in a decrease$16.3 million compared to prior year. The slowdown in the hydrogen industry, beginning early in 2025, along with the move of our manufacturing capability fromItaly toCanada andChina in the third and fourth quarters of 2025, negatively impacted sales in our High-Pressure Controls segment in 2025. - Net loss in continuing operations of
$29.6 million for the year endedDecember 31, 2025 compared to a net loss in continuing operations of$31.3 million for the prior year. The net positive change was primarily the result of lower operating expenditures across research and development, and selling, general and administrative expenses, favorable change in foreign exchange rates, partially offset by a loss from investments accounted for by the equity method of$15.8 million due to a full year equity pick-up of Cespira’s operating results compared to 7 months in the prior year. - Adjusted EBITDA1 loss of
$17.3 million , compared to a loss of$11.4 million in the prior year. Adjusted EBITDA for the fourth quarter was a loss of$9.9 million . - Cash and cash equivalents were
$27.2 million for the year endedDecember 31, 2025 . Cash provided by operating activities during the year was$14.2 million . - Long-term debt, including the current portion, reflected a 57% reduction to
$2.9 million as atDecember 31, 2025 , compared to$6.8 million in the prior year period. Including long-term debt from discontinued operations, the reduction was more than 90%.
________________
1Adjusted EBITDA is a non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures.
| Consolidated Results | ||||||
| ($ in thousands, except per share amounts) | Increase / (Decrease) % | Increase / (Decrease) % | ||||
| 4Q25 | 4Q24 | FY25 | FY24 | |||
| Revenue | (74)% | (43)% | ||||
| Gross Profit(2) | (169) | 363 | (147)% | 2,680 | 2,843 | (6)% |
| Gross Margin(2) | (9)% | 5% | — | 11% | 7% | — |
| Loss from Investments Accounted for by the Equity Method(1) | (5,078) | (2,611) | 94% | (15,845) | (6,715) | 136% |
| Net Loss from Continuing Operations | (8,813) | (13,425) | (34)% | (29,571) | (31,268) | (5)% |
| Net Income (Loss) from Discontinued Operations | (2,292) | 3,283 | (170)% | (32,055) | 9,427 | (440)% |
| Net Loss | (11,105) | (10,142) | 9% | (61,626) | (21,841) | 182% |
| Net Loss per Share - Basic & Diluted | (0.65) | (0.58) | 12% | (3.56) | (1.26) | 183% |
| EBITDA(2) | (10,695) | (6,103) | 75% | (53,693) | (6,563) | 718% |
| Adjusted EBITDA(2) | (9,939) | (1,883) | 428% | (17,276) | (11,416) | 51% |
(1) This includes income or loss primarily from our investments in Cespira joint ventures.
(2) Gross margins, EBITDA and Adjusted EBITDA are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures.
Segment Information
High-Pressure Controls
Revenue for the three months and year ended
The decrease in revenue for the year ended
Gross profit for the three months ended
Heavy-Duty OEM
Revenue for the three months and year ended
The decrease in revenue for the three months and year ended
Gross profit increased by
Selected Cespira Financial Information
We account for Cespira using the equity method of accounting. However, due to its significance to our long-term strategy and operating results, we disclose certain financial information from Cespira in notes 8 and 17 in our Annual Financial Statements.
The following table sets forth a summary of the financial results of Cespira for the three months ended
| (in thousands of | Three months ended | Change | Year ended | Change | ||||||||||||||||||||||||||
| 2025 | 2024 | $ | % | 2025 | 2024 | $ | % | |||||||||||||||||||||||
| Product revenue | $ | 23,414 | $ | 18,051 | $ | 5,363 | 30 | % | $ | 62,356 | $ | 32,919 | $ | 29,437 | 89 | % | ||||||||||||||
| Service revenue | 5,882 | 4,855 | $ | 1,027 | 21 | % | 15,087 | 10,166 | $ | 4,921 | 48 | % | ||||||||||||||||||
| Total revenue | 29,296 | 22,906 | $ | 6,390 | 28 | % | 77,443 | 43,085 | $ | 34,358 | 80 | % | ||||||||||||||||||
| Gross (loss) profit | (1,054 | ) | 458 | (1,512 | ) | (330 | )% | (3,501 | ) | 451 | $ | (3,952 | ) | (876 | )% | |||||||||||||||
| Gross margin1 | (4 | )% | 2 | % | (5 | )% | 1 | % | ||||||||||||||||||||||
| Research & development | (384 | ) | 1,764 | (2,148 | ) | (122 | )% | 5,641 | 4,715 | $ | 926 | 20 | % | |||||||||||||||||
| Selling, general, & administrative | 4,391 | 3,466 | 925 | 27 | % | 13,195 | 6,528 | $ | 6,667 | 102 | % | |||||||||||||||||||
| Operating loss | (7,791 | ) | (4,583 | ) | (3,208 | ) | 70 | % | (27,549 | ) | (12,091 | ) | $ | (15,458 | ) | 128 | % | |||||||||||||
| Net loss | (9,500 | ) | (4,825 | ) | (4,675 | ) | 97 | % | (29,278 | ) | (12,231 | ) | $ | (17,047 | ) | 139 | % | |||||||||||||
1Gross margin is non-GAAP financial measure. See the section 'Non-GAAP Financial Measures' for explanations and discussions of these non-GAAP financial measures or ratios.
Cespira's product revenue was
Cespira's product revenue was
Cespira's service revenue was
Cespira provided engineering services to OEM customers for product development, testing, integration, and validation. In 2025, Cespira provided engineering services to their initial OEM customer for the upcoming regulations in the European market. The increase in the current quarter relates to the increased engineering services delivered to their customers. Cespira recognizes its service revenue using the output method, driven primarily by achieving project milestones.
Cespira's gross profit was negative
Cespira's gross profit was negative
Liquidity and Going Concern
As at
We plan to improve our liquidity position by raising funds from public markets, borrowing debt, or other financing alternatives. These plans are not final and are subject to market and other conditions not in our control. As such, there can be no assurances that Westport will be successful in obtaining sufficient funding. Accordingly, we concluded under the accounting standards that these plans do not alleviate the substantial doubt about Westport's ability to continue as a going concern.
Conference call
Westport has scheduled a conference call for
https://register-conf.media-server.com/register/BIefca98da5fb34b16a81dd15541e90b0c
The live webcast of the conference call can be accessed through the Westport website at
https://investors.westport.com/.
Participants may register up to 60 minutes before the event by clicking on the call link and completing the online registration form. Upon registration, the user will receive dial-in info and a unique PIN, along with an email confirming the details.
The webcast will be archived on Westport’s website at https://investors.wfsinc.com.
Financial Statements and Management's Discussion and Analysis
To view Westport full financials for the fourth quarter and year ended
About Westport
Westport is a technology and innovation company connecting synergistic technologies to power a cleaner tomorrow. As a leading supplier of affordable, alternative fuel, low-emissions transportation technologies, we design, manufacture, and supply advanced components and systems that enable the transition from traditional fuels to cleaner energy solutions.
Our proven technologies support a wide range of clean fuels – including natural gas, renewable natural gas, and hydrogen – empowering OEMs and commercial transportation industries to meet performance demands, regulatory requirements, and climate targets in a cost-effective way. With decades of expertise and a commitment to engineering excellence, Westport is helping our partners achieve sustainability goals—without compromising performance or cost-efficiency – making clean, scalable transport solutions a reality.
Westport is headquartered in
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements, including statements regarding future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and Hydrogen) including testing to the HPDI fuel system, scaling our alternative fuel-based solutions, our expectations for 2025 and beyond, including the demand for our products, the future success of our business and technology strategies, shareholder approval of the Transaction, our ability to successfully close the Transaction and realize the benefits therefrom, including, potential earn-out payments, the Transaction alleviating liquidity concerns, our focus on providing affordable solutions to decarbonize long haul and heavy-duty trucking, our ability to bolster our balance sheet, fund organic growth as well as opportunistic bolt on acquisitions, a shift to operating as a smaller, more efficient organization. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward-looking statements. These risks, uncertainties and assumptions include those related to our revenue growth, operating results, industry and products, changes in business strategy, shifts in market demand, the general economy including impacts due to inflation, the effects of competition and pricing pressures, conditions of and access to the capital and debt markets, solvency, governmental policies, trade restrictions or other changes to international trade agreements, sanctions and regulation including the imposition of tariffs, technology innovations, fluctuations in foreign exchange rates, operating expenses, continued reduction in expenses, ability to successfully commercialize new products, the performance of our joint ventures, the availability and price of natural gas, new environmental regulations, the acceptance of and shift to natural gas and hydrogen vehicles, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the development of competing technologies, our ability to adequately develop and deploy our technology, the actions and determinations of our joint venture and development partners, the effects and duration of the
Inquiries:
Investor Relations
T: +1 604-718-2046
invest@westport.com
GAAP and Non-GAAP Financial Measures
Our financial statements are prepared in accordance with
Segment Information
EBITDA and Adjusted EBITDA are intended to provide additional information to investors and analysts and do not have any standardized definition under
| Year ended | |||||||||||||||
| High-Pressure Controls | Heavy-Duty OEM | Cespira | Total Segment | ||||||||||||
| Revenue | $ | 8,272 | $ | 15,046 | $ | 77,443 | $ | 100,761 | |||||||
| Cost of revenue | 7,362 | 13,276 | 80,944 | 101,582 | |||||||||||
| Gross profit | 910 | 1,770 | (3,501 | ) | (821 | ) | |||||||||
| Operating expenses: | |||||||||||||||
| Research & development | 5,332 | 159 | 5,641 | 11,132 | |||||||||||
| General & administrative | 1,729 | 133 | 11,903 | 13,765 | |||||||||||
| Sales & marketing | 390 | 26 | 1,292 | 1,708 | |||||||||||
| Depreciation & amortization | 355 | — | 3,283 | 3,638 | |||||||||||
| Add back: Depreciation & amortization1 | 575 | — | 6,567 | 7,142 | |||||||||||
| Segment EBITDA | $ | (6,321 | ) | $ | 1,452 | $ | (19,053 | ) | $ | (23,922 | ) | ||||
| Year ended | |||||||||||||||
| High-Pressure Controls | Heavy-Duty OEM | Cespira | Total Segment | ||||||||||||
| Revenue | $ | 9,383 | $ | 31,315 | $ | 43,085 | $ | 83,783 | |||||||
| Cost of revenue | 7,192 | 30,663 | 42,634 | 80,489 | |||||||||||
| Gross profit | 2,191 | 652 | 451 | 3,294 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research & development | 5,336 | 4,196 | 4,715 | 14,247 | |||||||||||
| General & administrative | 1,033 | 3,068 | 5,555 | 9,656 | |||||||||||
| Sales & marketing | 683 | 856 | 973 | 2,512 | |||||||||||
| Depreciation & amortization | 153 | 131 | 1,720 | 2,004 | |||||||||||
| Add back: Depreciation & amortization1 | 401 | 1,405 | 3,845 | 5,651 | |||||||||||
| Segment EBITDA | $ | (4,613 | ) | $ | (6,194 | ) | $ | (8,667 | ) | $ | (19,474 | ) | |||
| Year ended | |||||||||||||||
| Total Segment | Less: Cespira | Add: Corporate & unallocated | Total Consolidated | ||||||||||||
| Revenue | $ | 100,761 | $ | 77,443 | $ | — | $ | 23,318 | |||||||
| Cost of revenue | 101,582 | 80,944 | — | 20,638 | |||||||||||
| Gross profit | (821 | ) | (3,501 | ) | — | 2,680 | |||||||||
| Operating expenses: | |||||||||||||||
| Research & development | 11,132 | 5,641 | 292 | 5,783 | |||||||||||
| General & administrative | 13,765 | 11,903 | 12,095 | 13,957 | |||||||||||
| Sales & marketing | 1,708 | 1,292 | 1,065 | 1,481 | |||||||||||
| Depreciation & amortization | 3,638 | 3,283 | 160 | 515 | |||||||||||
| Equity income (loss) | — | — | (15,845 | ) | (15,845 | ) | |||||||||
| Year ended | |||||||||||||||
| Total Segment | Less: Cespira | Add: Corporate & unallocated | Total Consolidated | ||||||||||||
| Revenue | $ | 83,783 | $ | 43,085 | $ | — | $ | 40,698 | |||||||
| Cost of revenue | 80,489 | 42,634 | — | 37,855 | |||||||||||
| Gross profit | 3,294 | 451 | — | 2,843 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research & development | 14,247 | 4,715 | — | 9,532 | |||||||||||
| General & administrative | 9,656 | 5,555 | 16,622 | 20,723 | |||||||||||
| Sales & marketing | 2,512 | 973 | 1,170 | 2,709 | |||||||||||
| Depreciation & amortization | 2,004 | 1,720 | 377 | 661 | |||||||||||
| Equity income | — | — | (6,715 | ) | (6,715 | ) | |||||||||
| Reconciliation of Segment EBITDA to Loss before income taxes | Years ended | |||||||
| 2025 | 2024 | |||||||
| Total Segment EBITDA | $ | (23,922 | ) | $ | (19,474 | ) | ||
| Adjustments: | ||||||||
| Depreciation and amortization | 735 | 2,183 | ||||||
| Cespira's Segment EBITDA | (19,053 | ) | (8,667 | ) | ||||
| Cespira's equity loss | 15,845 | 6,715 | ||||||
| Corporate and unallocated operating expenses | 13,452 | 17,792 | ||||||
| Foreign exchange loss (gain) | (5,365 | ) | 6,227 | |||||
| Loss on sale of assets | — | 703 | ||||||
| Gain on deconsolidation | — | (15,198 | ) | |||||
| Loss on sale of investment | — | 352 | ||||||
| Impairment of long-lived assets | 538 | — | ||||||
| Interest on long-term debt and accretion of royalty payable | 613 | 1,083 | ||||||
| Interest and other income, net of bank charges | (1,259 | ) | 88 | |||||
| Loss before income taxes | $ | (29,428 | ) | $ | (30,752 | ) | ||
NON-GAAP FINANCIAL MEASURES RECONCILIATION
| Gross Profit | Years ended | |||||||
| (expressed in thousands of | 2025 | 2024 | ||||||
| Revenue | $ | 23,318 | $ | 40,698 | ||||
| Less: Cost of revenue | $ | 20,638 | $ | 37,855 | ||||
| Gross Profit | $ | 2,680 | $ | 2,843 | ||||
| Gross Margin as a percentage of Revenue | Years ended | |||||||
| (expressed in thousands of | 2025 | 2024 | ||||||
| Revenue | $ | 23,318 | $ | 40,698 | ||||
| Gross Margin | $ | 2,680 | $ | 2,843 | ||||
| Gross Margin as a percentage of Revenue | 11 | % | 7 | % | ||||
| EBITDA and Adjusted EBITDA | ||||||||||||||||||||||||||||||||
| Three months ended | ||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | (12,913 | ) | $ | 6,777 | $ | (2,441 | ) | $ | (8,283 | ) | $ | (1,872 | ) | $ | (32,671 | ) | $ | (13,523 | ) | $ | (10,863 | ) | |||||||||
| Interest expense, net | 471 | 543 | 350 | 272 | (193 | ) | 571 | (532 | ) | 9 | ||||||||||||||||||||||
| Depreciation and amortization | 3,247 | 1,716 | 1,790 | 1,908 | 1,930 | 2,051 | 1,241 | 159 | ||||||||||||||||||||||||
| EBITDA | $ | (9,195 | ) | $ | 9,036 | $ | (301 | ) | $ | (6,103 | ) | $ | (135 | ) | $ | (30,049 | ) | $ | (12,814 | ) | $ | (10,695 | ) | |||||||||
| Stock based compensation (recovery) | 409 | 1,083 | (140 | ) | 5 | 285 | 451 | (221 | ) | (108 | ) | |||||||||||||||||||||
| Unrealized foreign exchange (gain) loss | 1,820 | 57 | (1,069 | ) | 5,440 | (456 | ) | (2,362 | ) | 839 | (1,220 | ) | ||||||||||||||||||||
| Severance & restructuring costs | 617 | 684 | 380 | 4 | 299 | 96 | 798 | 39 | ||||||||||||||||||||||||
| Loss on disposal of operations | — | — | — | — | — | 30,183 | 5,085 | 2,045 | ||||||||||||||||||||||||
| Gain on deconsolidation | — | (13,266 | ) | — | (1,932 | ) | — | — | — | — | ||||||||||||||||||||||
| Loss on sale of investment | — | — | 352 | — | — | — | — | — | ||||||||||||||||||||||||
| Restructuring costs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
| Loss on sale of assets | — | — | — | 703 | — | — | — | — | ||||||||||||||||||||||||
| Impairment of long-term investments and long-term assets | — | — | — | — | — | 664 | — | — | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | (6,349 | ) | $ | (2,406 | ) | $ | (778 | ) | $ | (1,883 | ) | $ | (7 | ) | $ | (1,017 | ) | $ | (6,313 | ) | $ | (9,939 | ) | ||||||||
| Consolidated Balance Sheets | ||||||||
| (Expressed in thousands of | ||||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents (including restricted cash) | $ | 27,158 | $ | 14,754 | ||||
| Accounts receivable | 10,177 | 18,738 | ||||||
| Inventories | 3,037 | 6,668 | ||||||
| Prepaid expenses | 1,182 | 1,328 | ||||||
| Current assets held for sale | — | 128,398 | ||||||
| Total current assets | 41,554 | 169,886 | ||||||
| Long-term investments | 42,714 | 36,866 | ||||||
| Property, plant and equipment | 5,605 | 3,120 | ||||||
| Operating lease right-of-use assets | 1,756 | 823 | ||||||
| Other long-term assets | 2,380 | 1,431 | ||||||
| Long-term assets held for sale | — | 79,495 | ||||||
| Total assets | $ | 94,009 | $ | 291,621 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 17,933 | $ | 19,435 | ||||
| Current portion of operating lease liabilities | 493 | 288 | ||||||
| Current portion of long-term debt | 2,924 | 3,905 | ||||||
| Current portion of warranty liability | 199 | 277 | ||||||
| Current liabilities held for sale | — | 84,488 | ||||||
| Total current liabilities | $ | 21,549 | $ | 108,393 | ||||
| Long-term operating lease liabilities | 1,292 | 548 | ||||||
| Long-term debt | — | 2,932 | ||||||
| Warranty liability | 966 | 875 | ||||||
| Other long-term liabilities | 1,389 | 1,388 | ||||||
| Long-term liabilities held for sale | — | 40,460 | ||||||
| Total liabilities | $ | 25,196 | $ | 154,596 | ||||
| Shareholders’ equity: | ||||||||
| Share capital: | ||||||||
| Unlimited common and preferred shares, no par value | ||||||||
| 17,375,213 (2024 - 17,282,934) common shares issued and outstanding | $ | 1,246,793 | $ | 1,245,805 | ||||
| Other equity instruments | 8,968 | 9,472 | ||||||
| Additional paid-in-capital | 11,516 | 11,516 | ||||||
| Accumulated deficit | (1,157,901 | ) | (1,096,275 | ) | ||||
| Accumulated other comprehensive loss | (40,563 | ) | (33,493 | ) | ||||
| Total shareholders' equity | $ | 68,813 | $ | 137,025 | ||||
| Total liabilities and shareholders' equity | $ | 94,009 | $ | 291,621 | ||||
| Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||||||
| (Expressed in thousands of | ||||||||
| Years ended | ||||||||
| Years ended | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | 23,318 | $ | 40,698 | ||||
| Cost of revenue | 20,638 | 37,855 | ||||||
| Gross profit | 2,680 | 2,843 | ||||||
| Operating expenses: | ||||||||
| Research and development | 5,783 | 9,532 | ||||||
| General and administrative | 13,957 | 20,723 | ||||||
| Sales and marketing | 1,481 | 2,709 | ||||||
| Foreign exchange loss (gain) | (5,365 | ) | 6,227 | |||||
| Depreciation and amortization | 515 | 661 | ||||||
| Loss on sale of assets | — | 703 | ||||||
| Impairment on long-lived assets | 538 | — | ||||||
| $ | 16,909 | $ | 40,555 | |||||
| Loss from operations | $ | (14,229 | ) | $ | (37,712 | ) | ||
| Income from investments accounted for by the equity method | $ | (15,845 | ) | $ | (6,715 | ) | ||
| Gain on deconsolidation | — | 15,198 | ||||||
| Loss on sale of investment | — | (352 | ) | |||||
| Interest on long-term debt and accretion of royalty payable | (613 | ) | (1,083 | ) | ||||
| Interest and other income, net of bank charges | 1,259 | (88 | ) | |||||
| Loss before income taxes | (29,428 | ) | (30,752 | ) | ||||
| Income tax expense (recovery): | ||||||||
| Current | 143 | 481 | ||||||
| Deferred | — | 35 | ||||||
| $ | 143 | $ | 516 | |||||
| Net loss from continuing operations | $ | (29,571 | ) | $ | (31,268 | ) | ||
| Net income (loss) from discontinued operations | $ | (32,055 | ) | $ | 9,427 | |||
| Net loss for the year | $ | (61,626 | ) | $ | (21,841 | ) | ||
| Other comprehensive income (loss): | ||||||||
| Cumulative translation adjustment | $ | 4,898 | $ | (2,535 | ) | |||
| Reclassification of accumulated foreign currency translation on deconsolidation | (10,070 | ) | — | |||||
| Ownership share of equity method investments' other comprehensive loss | (1,898 | ) | (113 | ) | ||||
| (7,070 | ) | (2,648 | ) | |||||
| Comprehensive loss | $ | (68,696 | ) | $ | (24,489 | ) | ||
| Loss per share: | ||||||||
| From continuing operations - basic & diluted | $ | (1.71 | ) | $ | (1.81 | ) | ||
| From discontinued operations - diluted & diluted | $ | (1.85 | ) | $ | 0.55 | |||
| Net loss per share - basic & diluted | $ | (3.56 | ) | $ | (1.26 | ) | ||
| Weighted average common shares outstanding: | ||||||||
| Basic and diluted | 17,343,595 | 17,248,090 | ||||||
| Consolidated Statements of Cash Flows | ||||||||
| (Expressed in thousands of | ||||||||
| Years ended | ||||||||
| Years ended | ||||||||
| 2025 | 2024 | |||||||
| Operating activities: | ||||||||
| Net loss for the year from continuing operations | $ | (29,571 | ) | $ | (31,268 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 735 | 2,183 | ||||||
| Stock-based compensation expense | 808 | 766 | ||||||
| Unrealized foreign exchange loss (gain) | (5,365 | ) | 6,227 | |||||
| Deferred income tax expense (recovery) | — | 35 | ||||||
| Loss from investments accounted for by the equity method | 15,845 | 6,715 | ||||||
| Interest on long-term debt and accretion of royalty payable | 92 | 74 | ||||||
| Impairment of long-lived assets | 538 | — | ||||||
| Change in inventory write-downs to net realizable value | 403 | 1,143 | ||||||
| Gain on deconsolidation | — | (15,198 | ) | |||||
| Loss on sale of investment | — | 352 | ||||||
| Net loss on sale of assets | — | 703 | ||||||
| Change in bad debt expense | 233 | 288 | ||||||
| Net cash used before working capital changes | (16,282 | ) | (27,980 | ) | ||||
| Changes in working capital | $ | 2,038 | $ | 22,205 | ||||
| Net cash used in operating activities of continuing operations | $ | (14,244 | ) | $ | (5,775 | ) | ||
| Net cash (used in) provided by operating activities of discontinued operations | $ | (862 | ) | $ | 13,111 | |||
| Investing activities: | ||||||||
| Purchase of property, plant and equipment | $ | (2,693 | ) | $ | (3,813 | ) | ||
| Proceeds on sale of investments | — | 29,994 | ||||||
| Proceeds from sale of operations, net of cash in disposed operations | 26,034 | — | ||||||
| Proceeds received from holdback receivables | 14,067 | — | ||||||
| Capital contributions to investments accounted for by the equity method | (21,654 | ) | (9,900 | ) | ||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 15,754 | $ | 16,281 | ||||
| Net cash used in investing activities of discontinued operations | $ | (3,169 | ) | $ | (11,815 | ) | ||
| Financing activities: | ||||||||
| Drawings on operating lines of credit and long-term facilities | 5,839 | 15,537 | ||||||
| Repayment of operating lines of credit and long-term facilities | (9,836 | ) | (34,229 | ) | ||||
| Net cash used in financing activities of continuing operations | (3,997 | ) | (18,692 | ) | ||||
| Net cash (used in) provided by financing activities of discontinued operations | $ | (6,168 | ) | $ | (6,518 | ) | ||
| Effect of foreign exchange on cash and cash equivalents | $ | 2,198 | $ | (3,799 | ) | |||
| Net decrease in cash and cash equivalents | (10,488 | ) | (17,207 | ) | ||||
| Cash and cash equivalents, beginning of year (including restricted cash) | 37,646 | 54,853 | ||||||
| Cash and cash equivalents, end of year (including restricted cash) | $ | 27,158 | $ | 37,646 | ||||
| Less: cash and cash equivalents from discontinued operations, end of year (including restricted cash) | $ | — | $ | 22,892 | ||||
| Cash and cash equivalents from continuing operations, end of year (including restricted cash) | $ | 27,158 | $ | 14,754 | ||||
| Consolidated Statements of Cash Flows | |||||||
| (Expressed in thousands of | |||||||
| Years ended | |||||||
| Supplementary information: | Years ended December 31, | ||||||
| 2025 | 2024 | ||||||
| Interest paid | $ | 1,477 | $ | 2,721 | |||
| Taxes paid, net of refunds | 1,925 | 2,108 | |||||
| Changes in working capital | |||||||
| Accounts receivable | $ | 2,268 | $ | 37,032 | |||
| Inventories | 3,369 | (6 | ) | ||||
| Prepaid expenses | 217 | (635 | ) | ||||
| Accounts payable and accrued liabilities | (3,824 | ) | (13,057 | ) | |||
| Warranty liability | 8 | (1,129 | ) | ||||
| $ | 2,038 | $ | 22,205 | ||||
