NCL posts 11% revenue drop, $11.7M loss as tariffs triple and $8.3M stock comp spike offsets equity raise

Filed April 14, 2026 · Period ending December 31, 2025 · Compared to 10-K Jul 1, 2025 · ~2 min read

Key Changes

• high

  Revenue fell 11% to $13.6M as new U.S. tariffs on Chinese imports drove customer demand down; tariff expense tripled from $290K to $848K, compressing margins while company burned $5.7M in operating cash.

  MD&A: Revenue & Tariffs verify on EDGAR →
• high

  Net loss widened from $4.4M to $11.7M driven by $8.3M share-based compensation spike (34× prior year) in selling expenses; company raised $8.2M in equity but ended year with only $1M cash after funding $4.1M inventory build.

  MD&A: Net Loss & Cash Flow verify on EDGAR →
• high

  Auditor expressed substantial doubt about ability to continue as a going concern due to capital-raising uncertainty; company depends on future debt or equity financing to fund operations until recurring revenues materialize.

  Risk Factors: Going Concern verify on EDGAR →