Vision Marine Technologies Inc. Condensed Interim Consolidated Financial Statements For the three-month and six-month periods ended February 28, 2026 and 2025 (Unaudited) Vision Marine Technologies Inc.
Consolidated statements of financial position
[Going concern uncertainty - see note 2] | ||
(Unaudited) | As at | As at |
February 28, 2026 | August 31, 2025 | |
$ | $ | |
Assets | ||
Current | ||
Cash and cash equivalents [note 5] | 4,061,703 | 7,418,779 |
Restricted cash [note 5] | 150,000 | - |
Trade and other receivables [note 6] | 564,397 | 483,184 |
Income tax receivable | 12,761 | 9,058 |
Inventories [note 7] | 30,237,222 | 36,871,647 |
Prepaid expenses and deposits to suppliers [note 7] | 3,586,000 | 3,771,918 |
Share subscription receivable [note 17] | 326,048 | 28,526 |
Proceeds receivable from related parties [note 17] | 6,556,314 | 10,389,917 |
Total current assets | 45,494,445 | 58,973,029 |
Right-of-use assets [note 8] | 9,305,501 | 7,070,321 |
Property and equipment [note 9] | 2,980,399 | 3,307,055 |
Intangibles [note 10] | 508,601 | 481,197 |
Goodwill [note 4] | 190,935 | - |
Deferred income taxes | 10,370 | - |
Other financial assets | 141,587 | 81,655 |
Total assets | 58,631,838 | 69,913,257 |
Liabilities and shareholders' equity | ||
Current Trade and other payables [notes 11 & 17] | 7,502,634 | 8,607,790 |
Provision on onerous contracts | 67,195 | 66,706 |
Contract liabilities [note 12] | 6,372,743 | 5,674,870 |
Floor plan financing [note 14] | 18,152,523 | 32,511,664 |
Amounts due to related parties [note 17] | 62,867 | - |
Current portion of lease liabilities [note 13] | 2,498,210 | 1,666,853 |
Current portion of long-term debt [note 15] | 432,864 | 657,110 |
Current portion of derivative liabilities [note 16] | 438,672 | 510,238 |
Total current liabilities | 35,527,708 | 49,695,231 |
Lease liabilities [note 13] | 7,035,097 | 5,338,738 |
Long-term debt [note 15] | 1,225,340 | 1,373,885 |
Purchase consideration payable to related party [notes 16 and 17] | 5,354,308 | 5,048,506 |
Deferred income taxes | - | 5,895 |
Total liabilities | 49,142,453 | 61,462,255 |
Shareholders' equity Capital stock [note 18] | 73,727,463 | 67,144,672 |
Contributed surplus [note 19] | 12,337,548 | 11,785,399 |
Accumulated other comprehensive income | 1,183,405 | 1,102,489 |
Deficit | (77,759,031) | (71,581,558) |
Total shareholders' equity | 9,489,385 | 8,451,002 |
58,631,838 | 69,913,257 | |
Consolidated statements of changes in equity (deficit)
[Going concern uncertainty - see note 2]
(Unaudited)
For the six-month periods ended February 28,
Accumulated other
Contributed comprehensive
Common shares Pre-funded warrants surplus Deficit income Total
Units $ Units $ $ $ $ $
Shareholders' equity as at August 31, 2024 | 455 | 42,001,705 | 2 | 28,252 | 9,411,247 | (49,929,565) | 717,753 | 2,229,392 |
Total comprehensive loss | - | - | - | - | - | (3,720,035) | (416,534) | (4,136,569) |
Securities issuance - preferred shares converted | ||||||||
[notes 16 and 24] | 335 | 308,692 | - | - | - | - | - | 308,692 |
Securities issuance, net of transaction costs of | ||||||||
$1,891,037 [note 18] | 23,495 | 17,085,437 | 1,126 | 562,500 | - | - | - | 17,647,937 |
Securities issuance - pre-funded warrants converted | 1,126 | 562,500 | (1,126) | (562,500) | - | - | - | - |
Fractional securities issued due to reverse stock split | 488 | - | - | - | - | - | - | - |
Share-based compensation - warrants [note 19] | - | - | - | - | 348,552 | - | - | 348,552 |
Share-based compensation - stock options [note 19] | - | - | - | - | 23,220 | - | - | 23,220 |
Shareholders' equity as at February 28, 2025 | 25,899 | 59,958,334 | 2 | 28,252 | 9,783,019 | (53,649,600) | 301,219 | 16,421,224 |
Shareholders' equity as at August 31, 2025 | 122,737 | 67,116,420 | 2 | 28,252 | 11,785,399 | (71,581,558) | 1,102,489 | 8,451,002 |
Total comprehensive loss | - | - | - | - | - | (6,177,473) | 80,916 | (6,096,557) |
Management fees charged to Marine Ventures LLC | ||||||||
[note 17] | - | - | - | - | 159,269 | - | - | 159,269 |
Change in derivative liabilities due to partial | ||||||||
settlements of convertible note due to related | ||||||||
party [notes 16 and 24] | - | - | - | - | 17,578 | - | - | 17,578 |
Securities issuance, net of transaction costs of | ||||||||
$896,174 [note 18] | 708,728 | 2,770,541 | 318,750 | 3,812,250 | - | - | - | 6,582,791 |
Securities issuance - pre-funded warrants converted | ||||||||
[note 18] | 318,750 | 3,812,250 | (318,750) | (3,812,250) | - | - | - | - |
Fractional securities issued due to reverse stock split | ||||||||
[note 18] | 71,416 | - | - | - | - | - | - | - |
Share-based compensation - RSUs [note 19] | - | - | - | - | 30,980 | - | - | 30,980 |
Share-based compensation - stock options [note 19] | - | - | - | - | 13,131 | - | - | 13,131 |
Share-based compensation - warrants [note 19] | - | - | - | - | 331,191 | - | - | 331,191 |
Shareholders' equity as at February 28, 2026 | 1,221,631 | 73,699,211 | 2 | 28,252 | 12,337,548 | (77,759,031) | 1,183,405 | 9,489,385 |
Consolidated statements of comprehensive income (loss)
[Going concern uncertainty - see note 2]
(Unaudited) | Restated [note 2] | Restated [note 2] | ||
Three- | Three- | Six- | Six- | |
month | month | month | month | |
period | period | period | period | |
ended | ended | ended | ended | |
February | February | February | February | |
28, 2026 | 28, 2025 | 28, 2026 | 28, 2025 | |
$ | $ | $ | $ | |
Revenues [note 20] | 14,531,484 | 75,009 | 30,224,328 | 177,219 |
Cost of sales [note 7] | 10,134,016 | 78,899 | 21,628,521 | 217,333 |
Gross profit (loss) | 4,397,468 | (3,890) | 8,595,807 | (40,114) |
Expenses | ||||
Research and development | 142,315 | 565,648 | 219,013 | 747,549 |
Selling and marketing expenses | 1,802,018 | 759,290 | 3,446,227 | 1,151,128 |
Office salaries and benefits | 2,577,101 | 674,017 | 5,131,448 | 1,026,390 |
Office and general | 1,479,676 | 335,253 | 3,024,439 | 604,460 |
Professional fees | 536,380 | 638,398 | 1,265,420 | 1,438,218 |
Share-based compensation [note 19] | 22,832 | 10,089 | 44,111 | 23,220 |
Depreciation and amortization | 866,173 | 83,883 | 1,642,689 | 167,905 |
Net finance expense (income) [note 21] | (1,155,106) | (480,335) | 17,988 | (1,487,453) |
6,271,389 | 2,586,243 | 14,791,335 | 3,671,417 | |
Loss before tax | (1,873,921) | (2,590,133) | (6,195,528) | (3,711,531) |
Income taxes | ||||
Current tax expense (recovery) | 4,039 | (8,638) | (1,862) | 4,449 |
Deferred tax expense (recovery) | (13,036) | 1,780 | (16,193) | 4,055 |
(8,997) | (6,858) | (18,055) | 8,504 | |
Net loss for the period (1,864,924) | (2,583,275) | (6,177,473) | (3,720,035) | |
Items of comprehensive loss that will be subsequently reclassified to earnings:
Foreign currency translation differences for foreign
operations, net of tax | 305,363 | (224,398) | 80,916 | (416,534) |
Other comprehensive loss, net of tax | 305,363 | (224,398) | 80,916 | (416,534) |
Total comprehensive loss for the period, net of tax | (1,559,561) | (2,807,673) | (6,096,557) | (4,136,569) |
Weighted average shares outstanding | 802,698 | 16,246 | 461,892 | 9,116 |
Basic and diluted income (loss) per share | (2.32) | (159.01) | (13.37) | (408.08) |
Consolidated statements of cash flows
[Going concern uncertainty - see note 2] | ||
(Unaudited) Six-month periods ended February 28, | 2026 | 2025 |
Restated | ||
[note 2] | ||
$ | $ | |
Operating activities | ||
Net loss for the period | (6,177,473) | (3,720,035) |
Depreciation and amortization | 1,967,428 | 244,442 |
Accretion on long-term debt and lease liability | 360,983 | 24,735 |
Share-based compensation - options and warrants | 375,302 | 371,772 |
Shares issued for services | 190,788 | 721,922 |
Income tax expense (recovery) | (18,055) | 8,504 |
Gain on derivative liabilities [note 16] | (2,911,891) | (2,241,059) |
Loss on revaluation of contingent consideration [notes 16 and 17] | 466,795 | - |
Loss on lease termination | 44,023 | - |
Effect of exchange rate fluctuation | 60,218 | (416,683) |
(5,641,882) | (5,006,402) | |
Net change in non-cash working capital items | ||
Trade and other receivables | (81,213) | (88,718) |
Inventories | 6,798,032 | (327,266) |
Prepaid expenses and deposits to suppliers | 185,918 | (367,319) |
Share subscription receivable | (297,522) | - |
Other financial assets | (59,932) | 4,395 |
Trade and other payables | (1,234,551) | (2,571,975) |
Contract liabilities | 697,873 | 35,999 |
Cash provided by (used in) operating activities | 366,723 | (8,321,286) |
Investing activities | ||
Business acquisition - net of cash acquired | 27,616 | - |
Additions to property and equipment | (319,656) | (23,939) |
Additions to intangibles | (83,670) | (37,738) |
Proceeds received from related parties on sale of real estate [note 17] | 3,833,603 | - |
Cash provided by (used in) investing activities | 3,457,893 | (61,677) |
Financing activities | ||
Increase in floor plan financing | 132,102 | - |
Repayment of floor plan financing | (14,491,243) | - |
Decrease (increase) in restricted cash [note 5] | (150,000) | - |
Increase in long-term debt | 251,620 | 207,161 |
Repayment of long-term debt | (798,505) | (272,693) |
Repayment of purchase consideration | (1,723) | - |
Change in amounts due to related parties | (12,133) | (75,146) |
Issuance of Voting Common Shares and warrants [note 18] | 9,259,809 | 19,141,579 |
Repayment of lease liabilities | (1,371,619) | (50,949) |
Cash provided by (used in) financing activities | (7,181,692) | 18,949,952 |
Net increase (decrease) in cash during the period | (3,357,076) | 10,566,989 |
Cash and cash equivalents, beginning of period | 7,418,779 | 46,791 |
Cash and cash equivalents, end of period | 4,061,703 | 10,613,780 |