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Held-for-sale disposal group and discontinued operations | 6 Months Ended
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Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Held-for-sale disposal group and discontinued operations | 5. Held-for-sale disposal group and discontinued operations: On May 15, 2025, the Company held its Annual General and Special Meeting of Shareholders. At the meeting, shareholders approved management's plan to sell the Light-Duty segment in accordance with the terms of the sale and purchase agreement ("SPA") dated March 30, 2025. As at June 30, 2025, the Company accounted for the Light-Duty segment as a held-for-sale disposal group and presented its financial position and operating results in discontinued operations for both the current and comparative periods. As part of the terms of the transaction, the long-term debt with UniCredit S.p.A., Deutsche Bank, Banca de Credito Cooperativo, and Rabobank in Westport Fuel Systems Italia S.r.l and its subsidiaries will remain with the disposal group. As a result of classifying the Light-Duty segment as held-for-sale, the Company recorded a write-down loss of $30,183 in discontinued operations. Light-Duty's total additions to long-lived assets, excluding business combinations for the three and six months ended June 30, 2025 was $1,620 and $3,926, respectively (three and six months ended June 30, 2024 was $4,176 and $8,325). On July 14, 2025, the Company entered into a short-term loan with the Purchaser for $5,831 (€5,000). The loan was subsequently repaid on July 29, 2025. 5. Assets and liabilities held for sale (continued): On July 29, 2025, the Company closed the sale of its Light-Duty segment to the Purchaser. The transaction provided $62,513 (€53,600) in net proceeds received as $41,170 (€35,300) in initial cash proceeds, $8,514 (€7,300) in deferred payments expected to be received in September 2025 and $12,829 (€11,000) in proceeds held in escrow. Net proceeds are after the deduction of net debt in the Light-Duty segment and certain other closing costs. Further, up to $3,790 (€3,250) in potential earnouts are available if certain conditions are achieved in accordance with terms and conditions in the sale and purchase agreement. The proceeds held in escrow will be released to the Company in four tranches by year-end 2025, early 2026, early 2027 and mid-year 2027. Purchase price adjustments may impact the final proceeds received from the Purchaser and are customary in nature. Major assets and liabilities of the discontinued operations are as follows:
|  | June 30, 2025 |  | December 31, 2024
Cash |  | $ | 15,319 |  |  | $ | 22,892 |
Accounts receivable |  | 67,947 |  |  | 54,316 |
Inventories |  | 53,383 |  |  | 46,858 |
Prepaid expenses |  | 5,772 |  |  | 4,332 |
|  | 142,421 |  |  | 128,398 |
Long-term investments |  | 3,331 |  |  | 2,866 |
Property, plant, and equipment |  | 43,775 |  |  | 38,836 |
Operating lease right-of-use asset |  | 21,744 |  |  | 18,196 |
Intangible assets |  | 5,179 |  |  | 5,184 |
Deferred income tax assets |  | 10,196 |  |  | 9,695 |
Goodwill |  | 3,257 |  |  | 2,876 |
Other long-term assets |  | 1,999 |  |  | 1,842 |
|  | 89,481 |  |  | 79,495 |
Valuation allowance from classifying the discontinued operations as held-for-sale |  | (30,183) |  |  | — |
Total assets classified as held for sale |  | $ | 201,719 |  |  | $ | 207,893 |
Accounts payable and accrued liabilities |  | $ | 78,048 |  |  | $ | 68,688 |
Current portion of operating lease liabilities |  | 2,703 |  |  | 2,336 |
Current portion of long-term debt |  | 9,763 |  |  | 10,755 |
Current portion of warranty liabilities |  | 3,416 |  |  | 2,709 |
|  | 93,930 |  |  | 84,488 |
Long-term operating lease liabilities |  | 19,170 |  |  | 15,885 |
Long-term debt |  | 14,487 |  |  | 16,135 |
Warranty liabilities |  | 1,888 |  |  | 1,456 |
Deferred income tax liabilities |  | 3,588 |  |  | 4,029 |
Other long-term liabilities |  | 3,114 |  |  | 2,955 |
|  | 42,247 |  |  | 40,460 |
Total liabilities classified as held for sale |  | $ | 136,177 |  |  | $ | 124,948 |
5. Assets and liabilities held for sale (continued): Revenue and expenses of the discontinued operation are as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue |  | $ | 76,372 |  |  | $ | 69,277 |  |  | $ | 140,004 |  |  | $ | 132,423 |
Cost of revenue |  | 61,219 |  |  | 54,514 |  |  | 111,160 |  |  | 105,395 |
Gross profit |  | 15,153 |  |  | 14,763 |  |  | 28,844 |  |  | 27,028 |
Operating expenses: |  |  |  |  |  |  |  |
Research and development |  | 2,979 |  |  | 3,100 |  |  | 5,738 |  |  | 6,444 |
General and administrative |  | 3,756 |  |  | 5,883 |  |  | 7,481 |  |  | 9,041 |
Sales and marketing |  | 2,854 |  |  | 2,478 |  |  | 5,169 |  |  | 4,644 |
Foreign exchange loss |  | 1,862 |  |  | 198 |  |  | 2,609 |  |  | 82 |
Depreciation and amortization |  | 646 |  |  | 622 |  |  | 1,279 |  |  | 1,307 |
|  | 12,097 |  |  | 12,281 |  |  | 22,276 |  |  | 21,518 |
Income from discontinued operations |  | 3,056 |  |  | 2,482 |  |  | 6,568 |  |  | 5,510 |
Income from investment accounted for by the equity method |  | 387 |  |  | 414 |  |  | 472 |  |  | 445 |
Loss from classifying the discontinued operations as held-for-sale |  | (30,183) |  |  | — |  |  | (30,183) |  |  | — |
Impairment of long-lived assets |  | (664) |  |  | — |  |  | (664) |  |  | — |
Interest on long-term debt |  | (391) |  |  | (438) |  |  | (875) |  |  | (935) |
Interest and other income (loss), net of bank charges |  | 133 |  |  | 88 |  |  | 353 |  |  | 503 |
Income (loss) from discontinued operations before income tax |  | (27,662) |  |  | 2,546 |  |  | (24,329) |  |  | 5,523 |
Income tax expense |  | 1,629 |  |  | 875 |  |  | 2,118 |  |  | 1,479 |
Net income (loss) from discontinued operations |  | $ | (29,291) |  |  | $ | 1,671 |  |  | $ | (26,447) |  |  | $ | 4,044 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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