Revenue up 51% but gross margin collapses to -48%; working capital deficit doubles to $21.8M

Filed May 20, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 13, 2025 · ~2 min read

Key Changes

• high

  Gross margin deteriorated from -27.8% to -48.2% as Point-of-Sale segment margin fell to -59.6%. Management expects to focus on improving POS margins during 2026 and aims for MVNO to return to positive results in late 2026.

  MD&A: Gross Margin verify on EDGAR →
• high

  Working capital swung from a $4.1M surplus to a $21.8M deficit as current liabilities surged $24.3M (primarily accounts payable and notes payable), signaling deteriorating liquidity.

  MD&A: Working Capital verify on EDGAR →
• high

  Management concluded disclosure controls were 'not effective' as of March 31, 2026, a downgrade from the prior year's 'effective' conclusion despite segregation-of-duties limitations.

  Controls and Procedures verify on EDGAR →