[Condensed Consolidated Interim Financial Statements (unaudited)](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the unaudited balance sheets, statements of operations, equity, and cash flows for the period [Condensed Consolidated Interim Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) Total assets decreased to $424.4 million and shareholders' equity slightly declined to $229.1 million as of June 30, 2022 Balance Sheet Summary (in thousands of USD) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $291,863 | $338,564 | | Cash and cash equivalents | $98,174 | $124,892 | | **Total Assets** | **$424,398** | **$471,313** | | **Total Current Liabilities** | $123,427 | $146,447 | | **Total Liabilities** | **$195,252** | **$234,894** | | **Total Shareholders' Equity** | **$229,146** | **$236,419** | [Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) The company reported a net loss of $3.9 million for the first six months of 2022, a reversal from a net income of $14.1 million in the prior year Statement of Operations Summary (in thousands of USD, except per share amounts) | Metric | Three months ended June 30, 2022 | Three months ended June 30, 2021 | Six months ended June 30, 2022 | Six months ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $79,964 | $79,008 | $156,508 | $155,451 | | **Loss from operations** | $(11,325) | $(3,686) | $(22,128) | $(11,843) | | **Net income (loss)** | **$(11,579)** | **$17,229** | **$(3,869)** | **$14,089** | | **Net income (loss) per share - basic and diluted** | **$(0.07)** | **$0.11** | **$(0.02)** | **$0.09** | [Condensed Consolidated Interim Statements of Shareholders' Equity](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity decreased in H1 2022, driven by a net loss and other comprehensive loss from currency translation Reconciliation of Shareholders' Equity (Six months ended June 30, 2022, in thousands of USD) | Description | Amount | | :--- | :--- | | **Balance at January 1, 2022** | **$236,419** | | Net loss for the period | $(3,869) | | Other comprehensive loss | $(4,645) | | Stock-based compensation | $1,241 | | Issuance of common shares on exercise of share units | $0 | | **Balance at June 30, 2022** | **$229,146** | [Condensed Consolidated Interim Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Cash used in operations increased significantly, leading to a $26.7 million decrease in total cash during the first half of 2022 Cash Flow Summary (Six months ended June 30, in thousands of USD) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(33,404) | $(11,306) | | Net cash from investing activities | $25,670 | $6,063 | | Net cash (used in) from financing activities | $(16,407) | $99,859 | | **Decrease in cash and cash equivalents** | **$(26,718)** | **$96,449** | | **Cash and cash equivalents, end of period** | **$98,174** | **$160,711** | [Notes to Condensed Consolidated Interim Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section details accounting policies, liquidity risks, investment sales, debt structure, and segment performance [Note 1: Company organization and operations](index=7&type=section&id=1.%20Company%20organization%20and%20operations) The company engineers and supplies alternative fuel systems and components for the global transportation industry - The company focuses on providing alternative fuel systems (LPG, CNG, LNG, RNG, hydrogen) and components for a wide range of transportation applications globally[9](index=9&type=chunk) [Note 2: Liquidity and impact of COVID-19](index=7&type=section&id=2.%20Liquidity%20and%20impact%20of%20COVID-19) The company faces going concern risk due to operating losses, with future viability dependent on new financing or positive cash flow - The company continues to sustain operating losses and negative cash flows from operations, and its ability to continue as a **going concern beyond August 2023** depends on generating sufficient positive cash flows or obtaining financing[11](index=11&type=chunk) - As of June 30, 2022, the company has **cash and cash equivalents of $98,174 thousand**[11](index=11&type=chunk) [Note 6: Sale of investment](index=9&type=section&id=6.%20Sale%20of%20investment) The company sold its stake in the Cummins Westport Inc. joint venture, resulting in a total gain on sale of $19.1 million - The company sold its **100% interest in Cummins Westport Inc. ("CWI")** to Cummins Inc. on February 7, 2022[20](index=20&type=chunk) Gain on Sale of Investment (in thousands of USD) | Description | Amount | | :--- | :--- | | Proceeds from sale of investment | $31,445 | | Holdback receivable | $9,713 | | Carrying value of investment | $(22,039) | | **Gain on sale of investment** | **$19,119** | [Note 11: Short-term debt](index=11&type=section&id=11.%20Short-term%20debt) Short-term debt from revolving facilities decreased to $8.6 million as of June 30, 2022 Short-Term Debt (in thousands of USD) | Facility | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Revolving financing facilities | $8,610 | $13,652 | [Note 12: Long-term debt](index=12&type=section&id=12.%20Long-term%20debt) Total long-term debt decreased to $47.9 million, and the company remained in compliance with all debt covenants Long-Term Debt Summary (in thousands of USD) | Category | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Term loan facilities, net | $46,143 | $53,516 | | Other bank financing | $502 | $544 | | Capital lease obligations | $1,295 | $1,655 | | **Total Long-Term Debt** | **$47,940** | **$55,715** | [Note 15: Share capital, stock options and other stock-based plans](index=14&type=section&id=15.%20Share%20capital%2C%20stock%20options%20and%20other%20stock-based%20plans) Stock-based compensation expense increased to $1.4 million in H1 2022, with 2.5 million new share units granted - During the six months ended June 30, 2022, the company granted **2,533,288 share units**, including 1,311,890 RSUs and 1,221,398 PSUs[49](index=49&type=chunk) Stock-Based Compensation Expense (in thousands of USD) | Period | 2022 | 2021 | | :--- | :--- | :--- | | Three Months Ended June 30 | $864 | $539 | | Six Months Ended June 30 | $1,395 | $623 | [Note 18: Segment information](index=16&type=section&id=18.%20Segment%20information) OEM segment revenue grew while IAM revenue declined, with both segments reporting operating losses in H1 2022 - Revenue from Europe constituted **66% of total revenue** for the six months ended June 30, 2022, compared to 65% in the prior year period[59](index=59&type=chunk) Segment Performance (Six months ended June 30, in thousands of USD) | Segment | Revenue 2022 | Revenue 2021 | Operating income (loss) 2022 | Operating income (loss) 2021 | | :--- | :--- | :--- | :--- | :--- | | OEM | $106,101 | $90,165 | $(11,914) | $(9,883) | | IAM | $50,407 | $65,286 | $(367) | $2,744 | | Corporate | — | — | $(9,847) | $(4,704) | | **Total** | **$156,508** | **$155,451** | **$(22,128)** | **$(11,843)** | [Note 19: Financial instruments](index=18&type=section&id=19.%20Financial%20instruments) The company faces significant liquidity risk, with $112.9 million in contractual obligations due within one year - The company highlights **liquidity risk** as a key financial risk due to its history of operating losses and negative cash flows from operations[61](index=61&type=chunk) Contractual Maturities of Financial Obligations (as of June 30, 2022, in thousands of USD) | Period | Contractual Cash Flows | | :--- | :--- | | < 1 year | $112,928 | | 1-3 years | $41,449 | | 4-5 years | $15,513 | | >5 years | $15,843 | | **Total** | **$185,733** |

FOURTH QUARTER 2021 HIGHLIGHTS FULL-YEAR 2021 HIGHLIGHTS Adjusted EBITDA is a non-GAAP financial measures. Refer to section 'GAAP and Non-GAAP Financial Measures' for the reconciliation. EXHIBIT 99.1 Westport Fuel Systems Reports Fourth Quarter and Full-Year 2021 Financial Results VANCOUVER, British Columbia, March 14, 2022 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. ("WFS") (TSX:WPRT / Nasdaq:WPRT) today reported financial results for the fourth quarter and year ended December 31, 2021, and provided an ...