Financial Reports First Quarter 2026

Condensed Consolidated Interim Financial Statements (Expressed in U.S. dollars)

Three months ended March 31, 2026 and 2025

See accompanying notes to condensed consolidated interim financial statements.

Approved on behalf of the Board:

"Kathy Bayless" "Jim Roche"

Director Director

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss

Unaudited (Expressed in thousands of U.S. dollars, except per share amounts and number of shares)

Three months ended March 31,

See accompanying notes to condensed consolidated interim financial statements.

Condensed Consolidated Interim Statements of Changes in Equity

Unaudited (Expressed in thousands of U.S. dollars except number of shares)

See accompanying notes to condensed consolidated interim financial statements.

Condensed Consolidated Interim Statements of Cash Flows

Unaudited (Expressed in thousands of U.S. dollars)

Three months ended March 31,

1. Reporting entity:

   The principal business of Ballard Power Systems Inc. (the "Corporation") is the design, development, manufacture, sale and service of proton exchange membrane ("PEM") fuel cell products. The Corporation focuses on power products for bus and rail applications, stationary power, and other markets (consisting of truck, marine, material handling, off-road, and other applications), as well as the delivery of services including technology solutions, after sales service and training. A fuel cell is an environmentally clean electrochemical device that combines hydrogen fuel with oxygen (from the air) to produce electricity.

   The Corporation is a company domiciled in Canada and its registered office is located at 9000 Glenlyon Parkway, Burnaby, British Columbia, Canada, V5J 5J8. The condensed consolidated interim financial statements of the Corporation as at and for the three months ended March 31, 2026 and 2025 comprise the Corporation and its subsidiaries.

2. Basis of preparation:

   1. Statement of compliance:

      These condensed consolidated interim financial statements of the Corporation have been prepared in accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB"), on a basis consistent with those material accounting policies followed in the most recent annual consolidated financial statements, and therefore should be read in conjunction with the December 31, 2025 audited consolidated financial statements and the notes thereto.

      The condensed consolidated interim financial statements were authorized for issue by the Audit Committee of the Board of Directors on May 4, 2026.

   2. Basis of measurement:

      The condensed consolidated interim financial statements have been prepared on the historical cost basis except for the following material items in the statements of financial position:

      • Financial assets classified as measured at fair value through profit or loss (FVTPL)

   3. Functional and presentation currency:

      These condensed consolidated interim financial statements are presented in U.S. dollars, which is the Corporation's functional currency.

   4. Use of estimates:

The preparation of the condensed consolidated interim financial statements in conformity with International Financial Reporting Standards ("IFRS") requires the Corporation's management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

1. Basis of preparation (cont'd):

   1. Use of estimates (cont'd):

      Significant areas having estimation uncertainty include revenue recognition, asset impairment (including property, plant, and equipment and intangible assets), and any related recoveries of previously recognized impairment, warranty provision, inventory and onerous contracts provisions, and fair value measurement (including long-term financial investments). These estimates and judgments are unchanged in these condensed consolidated interim financial statements and are the same as those applied in the Corporation's audited consolidated financial statements as at and for the year ended December 31, 2025.

   2. Future operations:

   The Corporation is required to assess its ability to continue as a going concern or whether substantial doubt exists as to the Corporation's ability to continue as a going concern into the foreseeable future. The Corporation's ability to continue as a going concern and realize its assets and discharge its liabilities and commitments in the normal course of business is dependent upon the Corporation having adequate liquidity and achieving profitable operations that are sustainable. The Corporation's liquidity objective to remain a going concern into the foreseeable future is to maintain cash balances sufficient to fund at least six quarters of forecasted cash used by operating activities and contractual commitments.

   The Corporation's strategy to attain this liquidity objective is to continue its drive to attain profitable operations that are sustainable by executing a business plan that continues to focus on revenue growth, improving overall gross margins, maintaining discipline over operating expenses, managing working capital and capital expenditure requirements, and securing additional financing to fund its operations as needed until the Corporation does achieve profitable operations that are sustainable. Failure to implement this plan could have a material adverse effect on the Corporation's financial condition and/or results of operations.

2. Material accounting policies:

   The accounting policies in these condensed consolidated interim financial statements are the same as those applied in the Corporation's audited consolidated financial statements as at and for the year ended December 31, 2025.

   Effective for January 1, 2026, the Corporation assessed any new IFRS standards, applicable amendments and interpretations, concluding that they did not have a material impact on the Corporation's condensed consolidated interim financial statements.

   The following is an overview of accounting standard changes that the Corporation will be required to adopt in future years. The Corporation expects to adopt these standards as at their effective dates and will continue to evaluate their impact on the consolidated financial statements.

   IFRS 18 Presentation and Disclosure in Financial Statements

   In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements to improve reporting of financial performance and replace IAS 1 Presentation of Financial Statements. While IFRS 18 carries forward many requirements from IAS 1, the new Standard introduces the following significant changes to the structure of a company's financial statements:

   • Income and expenses in the statements of income or loss will be grouped into new categories resulting in new subtotals and/or line items being presented (including operating profit), along with changes in how certain existing subtotals are calculated;

1. Material accounting policies (cont'd):

   • New disclosures will be required for management defined performance measures (MPM), commonly referred to as 'non-GAAP measures'; and

   • New principles will apply to the aggregation and disaggregation of certain financial information in the financial statements.

     IFRS 18 applies for annual periods beginning on or after January 1, 2027. Retrospective application is required, and the Corporation's comparative information will be restated in accordance with the Standard. The extent of the impact of adoption of IFRS 18 is currently being assessed by the Corporation.

2. Critical judgments in applying accounting policies and key sources of estimation uncertainty:

   Critical judgments in applying accounting policies:

   Critical judgments that management has made in the process of applying the Corporation's accounting policies and that have the most significant effect on the amounts recognized in the condensed consolidated interim financial statements are limited to management's assessment of the Corporation's ability to continue as a going concern (note 2(e)).

   Key sources of estimation uncertainty:

   Key assumptions concerning the future and other key sources of estimation uncertainty that have significant risk of resulting in a material adjustment to the reported amount of assets, liabilities, income and expenses within the next fiscal year include the following: revenue recognition, asset impairment (including property, plant, and equipment and intangible assets) and any related recoveries of previously recognized impairment, warranty provision, inventory and onerous contracts provisions, fair value measurement (including long-term financial investments), and residual fair value of property, plant, and equipment. These assumptions are unchanged in these condensed consolidated interim financial statements and are the same as those applied in the Corporation's audited consolidated financial statements as at and for the year ended December 31, 2025.

3. Trade and other receivables:

   March 31, December 31,

   2026 2025

   Trade accounts receivable, gross $ 16,351 $ 23,711

   Allowance for doubtful accounts (3,122) (2,946)

   Trade accounts receivable, net 13,229 20,765

   Other receivables 3,446 3,437

   $ 16,675 $ 24,202

   Information about the Corporation's exposure to credit and market risks, and impairment losses for trade receivables and contract assets is included in note 24.

4. Inventories:

   During the three months ended March 31, 2026, the write-down of inventories to net realizable value including onerous contract adjustments amounted to $nil (2025 - $334,000) and the reversal of previously recorded write-downs and onerous contract adjustments amounted to $587,000 (2025 - $1,872,000), resulting in a net recovery to cost of product and service revenues of $587,000 (2025 - $1,538,000). Write-downs and reversals are included in either cost of product and service revenues or research and product development expense, depending upon the nature of inventory.

5. Property, plant and equipment:

March 31, December 31,

2026 2025

Property, plant and equipment owned $ 14,064 $ 13,928 Right-of-use assets 17,457 18,267

Property, plant, and equipment owned

March 31, December 31,

Net carrying amounts 2026 2025

Computer equipment $ 607 $ 604

Furniture and fixtures 3,300 3,300

Leasehold improvements 3,883 3,878

Production and test equipment 6,274 6,146

During the three months ended March 31, 2026, the Corporation recognized impairment charges of

$257,000 related to prepayments made for capital assets in progress that were subsequently cancelled.

During the three months ended March 31, 2025, the Corporation recognized impairment charges of

$2,223,000 related to a net fair value impairment allowance against consolidated capital assets.

During the three months ended March 31, 2025, the Corporation disposed of certain miscellaneous equipment in Denmark for net proceeds of $80,000, resulting in a gain on sale of assets of $70,000.

Right-of-use assets

The Corporation leases certain assets under lease agreements, comprised primarily of leases of land and buildings, office equipment, and vehicles (note 15).

Depreciation expense on property, plant, and equipment is allocated to operating expense or cost of goods sold depending upon the nature of the underlying assets. For the three months ended March 31, 2026, depreciation expense of $890,000 (2025 - $861,000) was recorded.

1. Property, plant and equipment (cont'd):

   Additions accrued for property, plant, and equipment for the three months ended March 31, 2026 total

   $216,000 (2025 - $2,230,000), whereas actual cash expended for additions total $589,000 (2025 -

   $2,430,000).

2. Intangible assets:

   March 31, December 31,

   2026 2025

   ERP management reporting software system $ 151 $ 248

   Accumulated Net carrying

   Balance Cost amortization amount

   At January 1, 2025 $ 55,081 $ 53,324 $ 1,757

   Additions to intangible assets 337 - 337

   Amortization expense - 726 (726)

   Impairment on intangible assets (11,885) (10,765) (1,120)

   Disposals adjustment (40,923) (40,923) -

   At December 31, 2025 2,610 2,362 248

   Amortization expense - 97 (97)

   At March 31, 2026 $ 2,610 $ 2,459 $ 151

   Additions to intangible assets for the three months ended March 31, 2026 of $nil (2025 - $233,000) consist primarily of costs to expand and enhance the capabilities of the ERP management reporting software system.

   Amortization expense on intangible assets is allocated to research and product development expense or general and administration expense depending upon the nature of the underlying assets. For the three months ended March 31, 2026, amortization of $97,000 (2025 - $125,000) was recorded.

3. Equity-accounted investments:

   For the three months ended March 31, 2026, the Corporation recorded $nil (2025 - $818,000) in equity loss of investment in joint venture and associates, comprising of equity loss in Weichai Ballard Hy-Energy Technologies Co., Ltd. ("Weichai Ballard JV"). Weichai Ballard JV is an associate in which the Corporation has significant influence and a 49% ownership interest. During the year ended December 31, 2025, the Corporation recognized impairment charges of $4,634,000 to fully impair its remaining equity investment in Weichai Ballard JV as it exits from its operations in China and expects to recover nominal, or no amounts, on its equity investment at this time.

   Investment in Weichai Ballard JV
   Investment in Weichai Ballard JV	March 31, 2026	December 31, 2025
   Beginning balance	$ -	$ 8,238
   Recognition of 49% profit on inventory not yet sold to third party, net	-	757
   Equity in loss	-	(4,727)
   Cumulative translation adjustment due to foreign exchange	-	366
   Impairment charges on equity-accounted investment	-	(4,634)
   Ending balance	$ -	$ -

4. Long-term financial investments:

In addition to the above equity-accounted investments, the Corporation has also acquired ownership interest in various other investments, which are recognized at fair value (note 24).

During the three months ended March 31, 2026, changes in fair value and foreign exchange adjustments for long-term investments totalling ($1,881,000) (2025 - $4,446,000) were recognized as unrealized (loss) gain in net loss and included in finance income and other (notes 20 and 24).

Investment in Forsee Power SA

In October 2021, the Corporation acquired a non-controlling 9.8% equity interest in Forsee Power SA ("Forsee Power"), a publicly traded French company specializing in the design, development, manufacture, commercialization, and financing of smart battery systems for sustainable electric transport.

During the three months ended March 31, 2026, changes in fair value and foreign exchange adjustments totalling ($222,000) (2025 - $2,820,000) were recognized as unrealized (loss) gain in net loss and included in finance income and other (notes 20 and 24), resulting in net fair value investment in Forsee Power of

$1,489,000 as of March 31, 2026 (March 31, 2025 - $5,090,000), now representing a non-controlling 4.5% equity interest.

Investment in Wisdom Motor Holdings Ltd.

In June 2022, the Corporation invested $10,000,000 and acquired a non-controlling 7.2% interest in Wisdom Group Holdings Ltd. ("Wisdom Motor"), a privately held Cayman Islands holding company with operating subsidiaries whose business includes the design and manufacture of vehicles, including zero emission fuel cell electric buses, trucks, and battery-electric vehicles. Subsequently, the Corporation assigned its option held to purchase additional Series A Preferred Shares in Wisdom for consideration of

$1,000,000, resulting in recovery of contributions of $1,000,000. During 2025, the Corporation's investment in Wisdom Motor was fully impaired.

1. Long-term financial investments (cont'd):

   Investment in Hydrogen Funds HyCap Fund I SCSp

   In August 2021, the Corporation invested in HyCap Fund I SCSp ("HyCap"), a special limited partnership registered in Luxembourg. During the three months ended March 31, 2026, the Corporation made additional contributions of £680,000 ($917,000) (2025 - £138,000 ($179,000)) for total contributions of £20,976,000 ($27,361,000).

   During the three months ended March 31, 2026, changes in fair value and foreign exchange adjustments totalling $(590,000) (2025 - $798,000) were recognized as unrealized (loss) gain in net loss and included in finance income and other (notes 20 and 24), resulting in net fair value investment in HyCap of $32,404,000 as of March 31, 2026 (March 31, 2025 - $24,964,000).

   Clean H2 Infrastructure Fund

   In December 2021, the Corporation invested in Clean H2 Infrastructure Fund I ("Clean H2"), a special limited partnership registered in France. During the three months ended March 31, 2026, the Corporation made additional contributions of $nil (2025 - $nil) for total contributions of €11,790,000 ($12,935,000).

   During the three months ended March 31, 2026, changes in fair value and foreign exchange adjustments totalling ($1,069,000) (2025 - $828,000) were recognized as unrealized (loss) gain in net loss and included in finance income and other (notes 20 and 24), resulting in net fair value investment in Clean H2 of

   $12,899,000 as of March 31, 2026 (March 31, 2025 - $9,871,000).

   Investment in Decarbonization and Climate Technology Fund Templewater Fund

   In February 2024, the Corporation invested in Templewater Decarbonization I, L.P ("Templewater"), a special limited partnership registered in Cayman Islands. During the three months ended March 31, 2026, the Corporation made additional contributions of $nil (2025 - $nil) for total contributions of $685,000, representing a 1.8% equity interest, on a total commitment of $1,000,000, remainder yet to be paid. During the three months ended March 31, 2026, the Corporation received a return of contribution of $nil (2025 -

   $27,000) in the form of an equalization payment.

   During the three months ended March 31, 2026, changes in fair value and foreign exchange adjustments totalling $nil (2025 - $nil) were recognized as unrealized gain (loss) in net loss and included in finance income and other (notes 20 and 24), resulting in net fair value investment in Templewater of $250,000 as of March 31, 2026 (March 31, 2025 - $288,000).

2. Bank facilities:

The Corporation has the following bank facilities available to it:

Letter of Guarantee Facility

The Corporation has a Letter of Guarantee Facility ("LG Facility"), enabling the bank to issue letters of guarantees, standby letters of credit, performance bonds, or similar credits on the Corporation's behalf from time to time up to a maximum of $2,000,000. As at March 31, 2026, a nominal amount (2025 - €979,000 ($1,058,000)) was outstanding on the LG Facility.

1. Bank facilities (cont'd):

   The LG Facility also enables the Corporation to enter into foreign exchange contracts (at face value amounts in excess of the LG Facility).

   As at March 31, 2026, the Corporation had outstanding foreign exchange currency contracts to purchase a total of CDN $nil (2025 - CDN $6,500,000) resulting in an unrealized loss of CDN $nil at March 31, 2026 (2025 - CDN ($248,000)). An unrealized gain on forward foreign exchange contracts is presented in prepaid expenses and other current assets and an unrealized loss on forward foreign exchange contracts is presented in trade and other payables on the condensed consolidated interim statements of financial position.

   The Corporation also has a Loan Agreement enabling the bank to issue commercial credit cards, standby letters of credit, or similar credits on the Corporation's behalf from time to time up to a maximum of approximately CDN $13,000,000. As at March 31, 2026, letters of credit of $2,092,000 (CDN $2,915,000) (2025 - $nil) were outstanding on the LG Facility associated with this Loan Agreement.

2. Trade and other payables:

   March 31, December 31,

   2026 2025

   Trade accounts payable $ 14,152 $ 12,007

   Compensation payable 8,057 11,787

   Other liabilities 3,953 4,794

   Taxes payable 198 200

   $ 26,360 $ 28,788
3. Deferred revenue:

Deferred revenue (i.e. contract liabilities) represents cash received from customers in excess of revenue recognized on uncompleted contracts.

During 2025, the Corporation accrued restructuring expenses in provisions and other current liabilities, consisting primarily of amounts incurred related to a July 2025 corporate restructuring initiative including costs related to the Chief Executive Officer ("CEO") transition and other personnel severance costs, certain contract exit and modification costs, and related consulting and advisory services. This provision is adjusted as actual costs are incurred and expended each quarter.

During the three months ended March 31, 2026, the Corporation accrued additional restructuring expenses related to personnel change costs and cost reduction initiatives.

As at March 31, 2026, restructuring costs totalling $4,281,000 (December 31, 2025 - $5,890,000) remain accrued.

Warranty Provision

The Corporation recorded warranty provisions of $771,000 (2025 - $890,000) related to new product sales offset by warranty expenditures of $1,628,000 (2025 - $513,000) due primarily to costs incurred to satisfy warranty obligations. During the three months ended March 31, 2026 and 2025, no warranty adjustments were recorded. As of March 31, 2026, total warranty provision of $12,771,000 (December 31, 2025 -

$13,567,000) has been accrued in provisions and other current liabilities.

Onerous Contracts Provision

Upon completion of a review of the Corporation's "open" contracts as at March 31, 2026, total onerous contract costs of $526,000 (December 31, 2025 - $929,000) have been accrued in provisions and other current liabilities.

The Corporation will continue to review open contracts on a quarterly basis to determine if any ongoing or new contracts become onerous, and/or any of the underlying conditions or assumptions change which would require an adjustment to the accrued provision.

The Corporation leases certain assets under lease agreements. The lease liability consists primarily of leases of land and buildings, office equipment and vehicles. The leases have interest rates ranging from 4.95% to 8.56% per annum and expire between November 2026 and February 2035.

During the three months ended March 31, 2026, the Corporation made principal payments on its lease liabilities of $831,000 (2025 - $689,000). The Corporation is committed to future minimum lease payments (comprising principal and interest) as follows:

Deferred gains on closing of finance lease agreements are amortized over the lease term. As at March 31, 2026 and 2025, there were no outstanding deferred gains.

A provision for decommissioning liabilities for the Corporation's head office building is related to estimated site restoration obligations at the end of the lease term. As at March 31, 2026, total decommissioning liabilities amounted to $2,688,000 (December 31, 2025 - $2,733,000), resulting from (dilution) accretion of ($45,000) (2025 - $19,000).

1. Equity:

   Three months ended March 31,

   Share-based compensation 2026 2025

   Option Expense $ - $ 115

   DSU Expense 72 88

   RSU Expense 1,233 1,663

   Total share-based compensation (per statement of loss and statement of cash flows) $ 1,305 $ 1,866 RSUs accrued but not yet granted (41) (40)

   Total share-based compensation (per statement of equity) $ 1,264 $ 1,826

   1. Share capital:

      As at March 31, 2026, 301,475,849 common shares were issued and outstanding.

   2. Share options:

      Options for common shares

      At December 31, 2025 2,262,620

      Options exercised -

      At March 31, 2026 2,262,620

      During the three months ended March 31, 2026, compensation expense of $nil (2025 - $115,000) was recorded in net loss based on the grant date fair value of the awards recognized over the vesting period.

      During the three months ended March 31, 2026 and 2025, no share options were exercised.

      As at March 31, 2026, options to purchase 2,262,620 common shares were outstanding (2025 -3,335,001).

   3. Deferred share units:

      DSUs for common shares

      At December 31, 2025 1,032,673

      DSUs granted 29,852

      At March 31, 2026 1,062,525

      Deferred share units ("DSUs") are granted to the board of directors and executives. Eligible directors must elect to receive at least half of their annual retainers, and executives may elect to receive all or part of their annual bonuses in DSUs. Each DSU is redeemable for one common share in the capital of the Corporation after the director or executive ceases to provide services to the Corporation. Shares will be issued from the Corporation's share distribution plan.

      During the three months ended March 31, 2026, $72,000 (2025 - $88,000) of compensation expense was recorded in net loss relating to 29,852 (2025 - 78,615) DSUs granted during the period.

      As at March 31, 2026, 1,062,525 DSUs were outstanding (2025 - 1,068,283).

      17. (d)	Equity (cont'd): Restricted share units:
      		RSUs for common shares
      	At December 31, 2025	5,478,660
      	RSUs granted	3,706,222
      	RSUs exercised	(1,368,536)
      	RSUs forfeited	(140,183)
      	At March 31, 2026	7,676,163

      Restricted share units ("RSUs") are granted to certain employees, executives and directors. Each RSU is convertible into one common share, net of statutory tax withholdings. The RSUs vest after a specified number of years from date of issuance and, under certain circumstances, are contingent on achieving specified performance criteria and/or market criteria. For certain of the RSUs awarded, a performance factor adjustment is made if there is an over-achievement (or under-achievement) of specified performance criteria, resulting in additional (or fewer) RSUs being converted. Certain RSUs granted in 2024 to 2026 include an additional market criteria with weighted vesting over three years.

      During the three months ended March 31, 2026, compensation expense of $1,233,000 (2025 - $1,663,000) was recorded in net loss.

      During the three months ended March 31, 2026, 1,368,536 RSUs (2025 - 776,466) were exercised, net of applicable taxes, which resulted in the issuance of 691,033 common shares (2025 - 395,118) resulting in an impact on equity of ($1,611,000) (2025 - ($488,000)).

      As at March 31, 2026, 7,676,163 RSUs were outstanding (2025 - 10,066,442).

2. Disaggregation of revenue:

The Corporation's operations and main revenue streams are the same as those described in the Corporation's audited consolidated financial statements as at and for the year ended December 31, 2025. Revenues from the delivery of services, including technology solutions, after sales service and training, are included in each of the respective markets. The Corporation's revenue is derived from contracts with customers.

In the following table, revenue is disaggregated by geographical market, by market application, and by timing of revenue recognition. Comparative information for disaggregation of revenue has been restated to reflect current year presentation.

1. Disaggregation of revenue (cont'd):

   Three months ended March 31,

   	2026	2025
   Geographical markets
   Europe	$ 8,096	$ 9,401
   North America	11,044	5,473
   China	-	189
   Rest of World	281	326
   	$ 19,421	$ 15,389
   Application
   Bus	$ 6,782	$ 12,467
   Rail	5,075	111
   Stationary	5,213	596
   Other	2,351	2,215
   	$ 19,421	$ 15,389
   Timing of revenue recognition
   Products transferred at a point in time	$ 18,505	$ 13,087
   Products and services transferred over time	916	2,302
   	$ 19,421	$ 15,389

2. Other operating expense:

   Three months ended March 31,

   	2026	2025
   Net impairment loss (recovery) on trade receivables	$ 5	$ (1)
   Restructuring and related costs	576	228
   	$ 581	$ 227
   Impairment loss (recovery) on trade receivables

   During the three months ended March 31, 2026, the Corporation recorded a nominal net impairment loss (2025 - nominal net impairment recovery) on trade receivables, consisting primarily of receivables no longer deemed collectible. In the event that the Corporation recovers any amounts previously recorded as impairment losses, the recovered amount will be recognized as a reversal of the impairment loss in the period of recovery.

   Restructuring and related costs

   During the three months ended March 31, 2026, total restructuring and related charges of $576,000 relate to personnel change costs and cost reduction initiatives.

   During the three months ended March 31, 2025, total restructuring and related charges of $228,000 relate to additional amounts accrued related to the global corporate restructuring initiated in September 2024 consisting primarily of cost reduction measures including a reduction in workforce, a rationalization of products and product development activities, and a reduction or cancellation of certain capital projects. Restructuring and related charges include personnel change costs.

3. Finance income (expense):

   Three months ended March 31,

   	2026	2025
   Investment and other income	$ 4,950 $	6,625
   Mark-to-market and foreign exchange (loss) gain on financial assets (notes 10 & 24)	(1,881)	4,446
   Foreign exchange (loss) gain	(114)	250
   Government recoveries	-	180
   Finance income and other	$ 2,955 $	11,501
   Finance expense	$ (441) $	(506)

4. Related party transactions:

   Related parties include shareholders with a significant ownership interest in the Corporation, including its subsidiaries and affiliates, and the Corporation's equity accounted investee, Weichai Ballard JV (note 9).

   For the three months ended March 31, 2026, related party transactions and balances with the Corporation's 49% owned equity-accounted investee, Weichai Ballard JV, were as follows:

   Balances with related party - Weichai Ballard JV	March 31, 2026	December 31, 2025
   Trade and other receivables	$ 1,607	$ 1,607
   Deferred revenue	1,607	1,607

   Three months ended March 31,

   Transactions during the period with Weichai Ballard JV 2026 2025

   Revenues	$	- $ 184
   Cost of goods sold and operating expense		- 91

5. Supplemental disclosure of cash flow information:

   Three months ended March 31,

   Non-cash financing and investing activities	2026	2025
   Compensatory shares	$ 1,821 $	1,821

6. Operating segments:

   The Corporation operates in a single operating segment, Fuel Cell Products and Services, which consists of the sale of PEM fuel cell products and services for a variety of applications, including bus and rail applications, stationary power, and other markets (consisting of truck, marine, material handling, off-road, and other applications). Revenues from the delivery of services, including technology solutions, after sales service and training, are included in each of the respective markets.

7. Financial Instruments:

   1. Fair value:

      The Corporation's financial instruments consist of cash and cash equivalents, short-term investments, trade and other receivables, long-term financial investments, and trade and other payables. The fair values of cash and cash equivalents, short term investments, trade and other receivables, and trade and other payables approximate their carrying values because of the short-term nature of these instruments.

      Long-term financial investments (note 10) comprise investment in hydrogen infrastructure and growth equity funds: HyCap Fund and Clean H2 Fund, investment in a decarbonization and climate technology fund: Templewater, and an investment in Forsee Power and Wisdom Motor. Changes in fair value and foreign exchange adjustments are recognized as gains or losses in net loss and included in finance income and other (note 20). During the three months ended March 31, 2026, the Corporation recognized net mark-to-market ("MTM") and foreign exchange (losses) gains of ($1,881,000) (2025 - $4,446,000).

      Change in fair value due to MTM and foreign exchange	March 31, 2026	December 31, 2025
      Long-term investment - Clean H2 Fund	$ (1,069) $	2,465
      Long-term investment - HyCap Fund	(590)	1,960
      Long-term investment - Forsee Power	(222)	(559)
      Long-term investment - Wisdom Motor	-	(1,900)
      Long-term investment - Templewater Fund	-	(223)
      (Decrease) increase in fair value of investments	$ (1,881) $	1,743

   2. Credit risk:

IFRS 9 Financial Instruments requires impairment losses to be recognized based on "expected losses" that will occur in the future, incorporating forward-looking information relating to defaults and applies a single 'expected credit loss' ("ECL") impairment model that applies to all financial assets within scope. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Corporation in accordance with the contract and the cash flows that the Corporation expects to receive). Under IFRS 9, at each reporting date the Corporation is required to assess whether financial assets carried at amortized cost are credit-impaired.

As a result of this review for the three months ended March 31, 2026, the Corporation did not recognize any additional estimated ECL impairment losses, excluding specific impairment losses (note 19). At March 31, 2026, the total amount accrued was $200,000 (December 31, 2025 - $200,000).