Persistent Net LossesDespite revenue and margin improvements, net income stayed negative in both years, implying non-operating charges (depreciation, financing, other items) still erode bottom-line results. Prolonged net losses limit equity rebuild, reduce retained earnings, and constrain the company's ability to self-fund growth or reduce leverage without external capital.
Rising Leverage And Weakened EquityLeverage increased materially in 2025 with debt at ~C$30.4M and debt/equity ~2.6x, reducing financial flexibility. Elevated leverage raises refinancing, covenant and liquidity risk, magnifies downside from commodity or operational shocks, and limits strategic optionality until profitability and equity metrics improve.
Deeply Negative Free Cash FlowFree cash flow around -C$31.0M in 2025, despite better operating cash flow, signals heavy investment or cash burn that external financing must cover. Prolonged negative FCF increases dependence on capital markets or debt, raising execution and dilution risk until investments begin to generate positive cash returns.