Net loss narrows 73.8% on tax benefit as revenue falls 15.8% and operating income swings negative

Filed May 14, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 14, 2025 · ~2 min read

Key Changes

• high

  Net loss narrowed to $3.1M from $11.7M, but operating income swung to a $2.2M loss from $2.1M income — the bottom-line improvement came from a $17.1M income tax benefit and $4.1M non-operating drag, not operations. Net income remains below operating income.

  MD&A: Income Tax & Non-Operating Items verify on EDGAR →
• high

  Material weaknesses in internal controls now caused immaterial errors in FY2025 financial statements (selling, general and administrative expenses and accrued liabilities), beyond the previously-disclosed FY2022 errors. Company added detailed remediation plan including hiring senior accounting/IT staff and implementing cloud-based ERP.

  Controls & Procedures verify on EDGAR →
• high

  December 2025 refinancing replaced $556.3M of 2028 Notes with $258.6M of 2031 Second Lien Notes and $60.6M of 2030 First Lien Notes; company repurchased $32.4M of the new Second Lien Notes at 40.7% of par (deep discount), but troubled-debt accounting prevented gain recognition.

  MD&A: Debt Refinancing verify on EDGAR →