On June 23, 2026, the Company issued 1,600,000 common shares as part of the securities purchase agreement. The Company estimated the fair value of the common shares of $126 using the residual allocation approach. Under this approach, the fair value of the Pre-Funded Warrant and Common Warrant liabilities was first determined and recognized at fair value, with the remaining proceeds allocated to the common shares based on their residual fair value.

During the three and six months ended June 30, 2026, the Company issued nil and 20,521 common shares, respectively, net of cancellations, upon exercises of share units (three and six months ended June 30, 2025 – 24,273 and 68,071 common shares, respectively). The Company issues shares from treasury to satisfy share unit exercises.

The value assigned to issued Units and the amounts accrued are recorded as other equity instruments. As Units are exercised or vest and the underlying shares are issued from treasury of the Company, the value is reclassified to share capital.

During the three and six months ended June 30, 2026, the Company recognized $276 and $444, respectively, (three and six months ended June 30, 2025 - $451 and $736) of stock-based compensation associated with the Westport Omnibus Plan. The Westport Omnibus Plan aims to advance the Company's interests by encouraging employees, consultants and non-employee directors to receive equity-based compensation and incentives. The plan outlines the stock-based options types, eligibility and vesting terms.


	Six months ended June 30, 2026			Six months ended June 30, 2025
	Number of Units	Weighted average grant date fair value (CDN $)		Number of Units	Weighted average grant date fair value (CDN $)
Outstanding, beginning of period	713,061	$	11.75	524,322	$	11.75
Granted	130,000	2.02		137,151	3.99
Exercised	(20,521)	17.80		(68,071)	17.48
Forfeited/expired	(134,706)	8.55		(117,296)	11.36
Outstanding, end of period	687,834	$	5.20	476,106	$	8.78
Units outstanding and exercisable, end of period	491	$	31.07	491	$	31.07

During the six months ended June 30, 2026, 130,000 share units were granted to certain employees (six months ended June 30, 2025 - 137,151).

Values of PSUs are determined using the Monte–Carlo Simulation Model. RSUs typically vest over a three-year period so the actual value received by the individual depends on the share price on the day such RSUs are settled for common shares, not the date of grant. Vesting of DSUs shall occur immediately prior to the resignation, retirement or termination of directorship, in accordance with the terms of Westport's Omnibus Plan.

As at June 30, 2026, $595 of compensation expense related to Units awarded has yet to be recognized in results from operations and will be recognized ratably over 1.5 years.

Stock-based compensation associated with the Unit plans is included in operating expenses as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

Research and development	5		15		13		28
General and administrative	271		433		431		680
Sales and marketing	—		3		—		28
	$	276	$	451	$	444	$	736


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

Stock-based compensation - equity or cash settled	110		181		196		393
Stock-based compensation - cash settled only	166		270		248		343

	$	276	$	451	$	444	$	736

Units outstanding settled in cash only are remeasured at each reporting period based on the Company's closing share price. The outstanding liability is reported within accrued payroll in note 10.