Westport Fuel Systems(WPRT) - 2022 Q3 - Quarterly Report

Revenue Performance - Revenue for Q3 2022 was $71,182,000, a decrease of 2.9% compared to $74,343,000 in Q3 2021[3] - For the nine months ended September 30, 2022, total consolidated revenue was $227,690, slightly down from $229,794 in the same period of 2021[58] - The OEM segment reported revenue of $44,142 with an operating loss of $7,265 for the three months ended September 30, 2022, compared to revenue of $48,033 and an operating loss of $7,385 in 2021[57] - The IAM segment generated revenue of $27,040 with an operating income of $2,145 for the three months ended September 30, 2022, compared to $26,310 and $633 in 2021[57] Net Loss and Financial Performance - Net loss for Q3 2022 was $11,927,000, compared to a net loss of $5,768,000 in Q3 2021, reflecting a significant increase in losses[3] - Comprehensive loss for Q3 2022 was $17,441,000, compared to a comprehensive loss of $9,835,000 in Q3 2021[3] - The company reported a loss from operations of $10,923,000 in Q3 2022, compared to a loss of $8,643,000 in Q3 2021[3] - For the three months ended September 30, 2022, Westport Fuel Systems reported a net loss of $11,927 thousand, compared to a net loss of $5,768 thousand for the same period in 2021, indicating a deterioration in performance[5] Assets and Liabilities - Total assets decreased to $392,967,000 as of September 30, 2022, down from $471,313,000 at the end of 2021, representing a decline of 16.6%[2] - Total shareholders' equity decreased to $212,436,000 from $236,419,000, a decline of 10.1%[2] - Current liabilities decreased to $115,393,000 from $146,447,000, a reduction of 21.2%[2] - Cash and cash equivalents decreased to $86,501,000 from $124,892,000, a decline of 30.7%[2] Cash Flow and Operating Activities - Operating activities resulted in a net cash outflow of $41,995 thousand for the nine months ended September 30, 2022, compared to an outflow of $25,697 thousand for the same period in 2021[5] - The company experienced a decrease in cash and cash equivalents, ending the period with $86,501 thousand, down from $141,899 thousand at the end of September 2021[6] - As of September 30, 2022, Westport Fuel Systems reported cash and cash equivalents of $86,501, with cash used in operating activities amounting to $8,591 for the three months ended September 30, 2022, primarily due to operating losses of $10,923[11] Expenses and Costs - Research and development expenses for Q3 2022 were $6,473,000, slightly up from $6,207,000 in Q3 2021[3] - The company reported depreciation and amortization expenses of $9,040 thousand for the nine months ended September 30, 2022, down from $10,485 thousand in the same period of 2021[5] - Stock-based compensation expense increased to $2,210 thousand for the nine months ended September 30, 2022, compared to $1,252 thousand for the same period in 2021[5] - Operating lease cost for Q3 2022 was $1,003,000, a decrease of 4.2% from $1,047,000 in Q3 2021[10] Shareholder and Equity Information - The weighted average common shares outstanding for Q3 2022 were 171,246,067, compared to 169,500,461 in Q3 2021[3] - Total shareholders' equity as of September 30, 2022, was $212,436 thousand, a decrease from $231,590 thousand as of September 30, 2021[4] - The company issued 20,930,000 common shares in a public offering, raising $107,921 thousand net of costs incurred[4] - The company issued 496,954 common shares during the nine months ended September 30, 2022, compared to 282,534 shares in the same period of 2021, indicating an increase in share issuance[45] Risks and Challenges - The company is facing inflationary pressures on production input costs, impacting margins due to global supply chain shortages[9] - The company has exposure to liquidity risk, credit risk, foreign currency risk, and interest rate risk, which could impact its financial position[59] - The company experienced operating losses and negative cash flows, indicating a need for profitable, sustainable growth to continue as a going concern beyond November 2023[11] Other Financial Metrics - The company had a total of $5,570,000 in long-term royalty payable as of September 30, 2022, down from $9,947,000 at the end of 2021, reflecting a decrease of 44%[39] - Warranty liability decreased to $10,575,000 as of September 30, 2022, from $18,791,000 at the end of 2021, a reduction of 43%[43] - The principal repayment schedule for long-term debt indicates a total repayment of $11,001,000 due in 2023[38] - The company had a revolving financing facility with HSBC, with an outstanding amount of $7,714,000 as of September 30, 2022, down from $12,965,000 at the end of 2021, a decrease of 40%[28]