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Maritime Launch Services Inc. — Management Reports 2026
May 15, 2026
46349_rns_2026-05-14_61490326-8fb0-469e-a912-dd7545b3523d.pdf
Management Reports
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MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
Maritime Launch Services Inc.
Management Discussion and Analysis (MD&A)
For the Three Months Ended March 31, 2026
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
MANAGEMENT DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED MARCH 31, 2026.
Reference to the "Company," "our," "us" or "we" refer to Maritime Launch Services Inc. ("MLS" or "Maritime Launch Services") together with its wholly owned subsidiaries Maritime Launch USA Inc., Maritime Launch Services (Nova Scotia) Ltd. and its wholly owned subsidiary Spaceport Canada Inc. (acquired March 20, 2025)
This Management Discussion and Analysis ("MD&A") should be read in conjunction with the unaudited condensed interim consolidated financial statements of the Company for the three months ended March 31, 2026 ("Q1 2026 Interim Financial Statements") and the accompanying notes, as well as the audited consolidated financial statements of the Company for the year ended December 31, 2025 ("2025 Annual Financial Statements") and the accompanying notes.
The 2025 Annual Audited Consolidated Financial Statements have been prepared in accordance with IFRS® Accounting Standards issued by the International Accounting Standards Board ("IASB") and IFRIC® Interpretations of the IFRS Interpretations Committee
All dollar amounts are expressed in Canadian Dollars ("CAD"), except where otherwise indicated.
The information in this MD&A is current to May 13, 2026, unless otherwise noted.
Forward-Looking Information
This MD&A contains "forward-looking information" within the meaning of applicable Canadian securities laws. Such forward-looking information includes, but is not limited to, information with respect to the Company's objectives and strategies to achieve these objectives, as well as information with respect to the Company's beliefs, plans, expectations, anticipations, estimates, intentions, and views of future events. Discussions containing forward-looking information may be found throughout this MD&A. In some cases, forward-looking information can be identified by words or phrases such as "forecast", "target", "goal", "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "predict", or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking information. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward looking information. Statements containing forward-looking information are not historical facts. The Company has based the forward-looking information on its current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy, and financial needs.
Forward-looking statements include, but are not limited to, those relating to:
- expectations for space industry growth which may be impacted by new technology and geopolitics;
- the extent of global demand for small and medium class satellite launch services for satellite constellation deployment, which may be impacted by competition, economic and launch market conditions, and new technologies;
- launch timing, which may be impacted by financing and construction schedules;
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
- number, frequency of launches and class or size of launch vehicles which may be impacted by availability of launch vehicles, launch market conditions, construction, and financing;
- expected revenues from the launch site lease model ("airport model") which may be impacted by the launch vehicle customer selected and the services required by the customer, as well as their launch cadence;
Statements containing forward-looking information are based on certain assumptions and analyses made by the Company in light of management's experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate and are subject to risks and uncertainties. These assumptions include our ability to maintain and expand the scope of our business; our ability to execute on our growth strategies; assumptions relating to government support and funding levels for space programs and missions; continued and accelerated growth in the global space economy; the impact of competition; our ability to retain key personnel; our ability to obtain and maintain existing financing on acceptable terms; changes and trends in our industry or the global economy; currency exchange and interest rates; and changes in laws, rules, regulations.
Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect and there can be no assurance that actual results will be consistent with the forward-looking information. Given these risks, uncertainties and assumptions, readers should not place undue reliance on the forward-looking information. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those described in this MD&A and listed under the heading "Risk Factors" and in the Company's Annual Information Form, which was filed on SEDAR+ on March 30, 2026, such factors should not be considered exhaustive and should be read together with the other cautionary statements in this MD&A.
If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information.
Company Overview
The Company's business model is to bring in third party launch vehicle providers as lease and launch clients, with additional revenue generating ground station development initiatives. One customer agreement was closed in December 2025 and a long-term lease agreement with the Canadian Department of National Defense was signed in March 2026.
Building and operating a launch facility requires a strategic approach to capital investments and a business model designed to meet the evolving needs of the sector. The facility's success hinges on carefully planned infrastructure, operational efficiency, competitive leasing options tailored to its clientele, and diversification of the spaceport mission that, at its core, supports orbital launch capability but also accommodates suborbital and hypersonic testing capability, as well as ground station hosting.
Demand for Launch
The market demand for launch facilities has grown significantly in recent years. With the proliferation of small satellite constellations for applications such as earth observation, telecommunications, and the internet of things (IoT), the need for dedicated and flexible launch solutions has become critical. Companies are seeking reliable, cost-effective, and responsive options to place their payloads into orbit without the
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
delays and limitations often associated with larger launch systems. Furthermore, recent changes in the geopolitical environment in the United States of America, have heightened the demand for domestic launch capabilities in Canada, as businesses and governments seek greater sovereignty, independence, and security in accessing space. This access to space also enables the Canada-US Defense relations as it pertains to North American defense, security, launch resiliency, and capacity. The Florida Space Coast, as noted in recent publications, is at its launch tempo limits (at or near full capacity) and represents a single point of failure should it become unavailable. This growing demand presents a unique opportunity for Maritime Launch Services to establish itself as a key enabler in the rapidly expanding commercial space sector.
Spaceport Location
The Company's launch facility (known as "Spaceport Nova Scotia") is near Canso, Nova Scotia, located on land leased by the Company from the Province of Nova Scotia. The location is ideal, meeting all the necessary criteria for a launch facility. Coastal areas ensure safe launch trajectories over water, minimizing risks to populated areas while supporting specific orbital requirements such as polar or sun-synchronous orbits. To create a fully functional spaceport, the site is being developed with the infrastructure essential for launch operations, including roads, utilities, and safety measures.
Much of the groundwork necessary to develop the infrastructure vital for launch operations, including roads, utilities, and safety measures—aimed at creating a fully functional spaceport began in September 2022 with a suborbital demonstration launch completed in July 2023 and a further suborbital launch in November 2025.
The launch pads and associated structures will be at the heart of the facility. These are typically purpose-built to handle small-lift launch vehicles and are equipped with flame trenches, propellant loading systems, and infrastructure to support vehicle erection, payload integration, and launch. Nearby, integration and payload processing facilities provide secure, climate-controlled environments where customers can prepare and integrate their payloads with the launch vehicles. These facilities are critical for pre-launch activities, including satellite assembly, fueling, and final testing.
To ensure safe and reliable operations, range safety and control systems are installed. These systems include telemetry and tracking capabilities. A mission control and operations center serves as the nerve center for the facility, where trained personnel oversee launch activities, monitor systems, and manage contingencies in real-time.
Launch Diversification
The capacity for suborbital and hypersonic missions is a key benefit of the site. Developing solutions to advance the state of the art in hypersonic and suborbital autonomous platforms requires an environment that allows for extensive testing of these solutions in real-world conditions. This means that any vehicle or technology must have a place where it can be brought, prepared for launch, launched, tracked, safely landed, recovered, and processed to deliver results and data to the developer. Currently, such capability does not exist in Canada, which creates several challenges and roadblocks for prospective developers. Without this capability, developers of hypersonic and suborbital applications are largely restricted to testing their vehicles and technologies in simulated or laboratory environments. In addition, to conduct live testing, they must arrange with foreign launch and testing providers, necessitating travel outside of Canada for these tests. Such arrangements introduce multiple disadvantages, including security concerns, uncertain schedules, and heavy dependence on the priorities and decision-making circumstances of the foreign provider and their government, along with logistical complexities. All these disadvantages disappear with the existence of domestic testing capabilities.
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
Site Infrastructure
Propellant storage and distribution systems support all the site's core functions and ensure the safe handling of rocket fuels and oxidizers. Cryogenic tanks, piping systems, and refueling stations are integral to the operational infrastructure. Additionally, utilities such as power, water, telecommunications, and access roads are developed to maintain 24/7 readiness for launch preparations and support personnel.
Environmental and compliance systems are implemented to monitor and mitigate any adverse impacts of launch activities, ensuring the facility adheres to regulatory standards. Noise mitigation, waste management, and air quality monitoring systems play a crucial role in maintaining sustainable operations. To keep everything running smoothly, maintenance and logistics equipment, including mobile cranes, transporters, and ground support tools, are present on-site to facilitate rapid turnaround times between launches.
Business Model
The business model is optimized for leasing launch pads and other facility structures is designed to attract and serve various customers, ranging from commercial small satellite launch companies to government agencies and research institutions. The leasing structure is aimed at long-term fixed fee leases with additional per-launch services and support. Customized packages are available for customers requiring additional services, such as payload integration or technical support.
The primary source of revenue for the facility will come from the annual leasing of facilities to customers. This steady income stream from the leasing of launch pads is sufficient to ensure profitability of the Spaceport and is further enhanced by additional revenues generated from the provision of related support services, such as payload testing, integration, and post-launch data analysis, as required by launch customers. These services allow customers to tailor their experience while providing the facility with opportunities to enhance its profitability.
The facility will implement cost-management strategies to ensure operational efficiency and profitability, such as standardizing procedures and investing in modular, automated systems. Collaborations with regional suppliers for propellants and logistics further lower costs while maintaining high service quality. Customers are also provided with premium services, such as expedited launch windows and co-marketing opportunities, to enhance their experience and generate additional revenue.
Expected Maritime Launch Advantages
The Company recognizes that the facility's competitive advantage lies in its unique geographic location, efficient regulatory processes, innovative business model, and customer-centric services. Coastal sites with favorable weather conditions and access to valuable orbits provide significant benefits to launch customers. By cultivating long-term partnerships with technology providers and government entities, the facility can continuously enhance its offerings and stay at the forefront of the small and medium-lift launch market.
The purposeful development of the launch site also creates opportunities outside the facility. Maritime Launch has already attracted a ground station client to the area, hosted on separate acreage owned by the Company, with additional clients exploring expansion plans for their ground station activities. The anchor tenancy of the spaceport on the 45th parallel and the northeastern tip of North America will continue to draw other businesses to the region.
Looking ahead, the facility is designed with scalability in mind. Current site plans are for four launch pads (one already operational and three more being constructed in 2026 and 2027). Additional launch pads can be developed to support concurrent launches or accommodate different types of launch vehicles. The facility can also expand into ancillary markets, such as accommodating launching larger vehicles, one day
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
enabling space tourism, or supporting R&D initiatives for advanced propulsion systems, including hypersonics. By combining strategic infrastructure development with a robust and flexible business model, the small-lift launch facility positions itself as a vital enabler in the burgeoning commercial space industry in Canada.
Opportunities within the Global Commercial Space Industry
Since the landing of the last NASA Space Shuttle in 2011, the low earth orbit ("LEO") market demand has been met by the commercial space industry and has experienced average year-over-year growth of approximately 3%. This trend is coupled with the miniaturization of technology moving away from very large geosynchronous orbit ("GEO") satellites to much smaller satellite clusters, alongside the increasing market demand for global broadband and other communication and remote sensing satellites. The global space economy was valued by the analytics and engineering firm NovaSpace (previously known as Euroconsult), and according to their report on the global space economy through 2025 the value reached an all-time high of US$ 626 billion. The launch industry segment of this economy, which MLS sees as the backbone of the industry, was valued at about US$ 22 billion in 2024. The World Economic Forum published an analysis in April 2024, stating that the global space economy had reached US$ 630 billion in 2023 and is on pace to reach US$ 1.8 trillion in activity by 2035.
The entire commercial space industry relies on the combination of spaceports and launch vehicles to achieve its growth. The majority of the sector's value (83%) is derived from space-based end-user applications, which include telecommunications, Earth observation, and companies using satellite navigation to deliver services to their customers.
There are several key competitive considerations for the launch of these satellites, including cost, schedule, spaceport location related to launch inclination, satellite destination, proximity to satellite manufacturers, government stability, relationship with the United States, nearby multi-modal infrastructure, lift capacity of the launch vehicle, and the physical volume of the payload bay (fairing diameter). Other considerations and strengths of a launch location include temperate weather, nearby propellant and gas sources, and access to a skilled workforce and universities. The opportunity presented by a commercially operated, North American location (where most satellites on earth are made) with a wide range of launch inclinations, which is phasing in launch capability using multiple launch platforms and ultimately working to bring mature, low technical risk launch vehicle(s) with multi-ton lift capacities and a large diameter fairing, is believed by management to be differentiated within the spaceport industry as it exists today and difficult to replicate elsewhere.
As of the date of this MD&A, management is aware of upwards of forty spaceports globally that have either successfully launched satellites into orbit or are in various stages of development. All but one of these spaceports is owned and operated by a government entity, regardless of whether they call themselves a commercial launch site. The one active truly commercial launch site is a single user facility located in New Zealand. Spaceport Nova Scotia is expected, subject to completion of construction and regulatory processes, to be among a small number of truly commercial launch sites globally and would represent the first such facility in Canada. Management believes it is being developed with competitive features and an increased level of flexibility compared to government-operated spaceports.
Maritime Launch expects that Canada's current atmosphere of innovative investment, renewed and revised space policy initiatives, and international government agreements and treaties provides a solid foundation for Canada's space industry to grow. Maritime Launch has engaged the Governments of Canada and Nova Scotia to promote the significant benefits the Spaceport will bring to the region and the country. In response, the Government of Canada has committed to support Maritime Launch by updating Canada's launch
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
regulations, negotiating a Technology Safeguard Agreement treaty with the US government (the "TSA"), and providing support for numerous financial reimbursement programs.
As previously stated, the Spaceport is uniquely positioned in North America, allowing for various launch inclinations from 45 degrees to 98 degrees, including sun-synchronous orbit (SSO), along with a favorable northern latitude for Low Earth Obit (LEO) and Medium Earth Orbit (MEO) markets. These markets include global broadband and communication satellites, as well as the new space stations being developed in the US. Reporting in 2025 by Goldman Sachs projects as many as 70,000 satellite will be launched in the five year period following the report. According to NovaSpace's 2025 report, more than 2,000 launches of Earth Observation satellites will occur over the next 10 years for government use purposes compared to less than 350 launches over the previous 10 years. The Company plans to expand its offerings, providing launches ranging from 150 kg to four tons for SSO and up to ten tons for LEO, especially as other launch ranges approach capacity. This expansion will begin with one launch pad and based on market demand, could include up to four additional pads within the current site parameters.
The site of the Spaceport is located in a high-tech, university-rich province that serves as the base for the Canadian naval fleet. It is adjacent to a wind farm for electricity, less than one kilometer from a deep seaport, and 50 km from a major super port, along with a transnational rail line and highway network. The launch facility leases will be offered at competitive rates comparable to those of other spaceports providing similar services. There is also a significant satellite manufacturing industry in Canada, and the government is expected to encourage this industry to prioritize Spaceport Nova Scotia's launch lease clients to keep launch spending domestic and reduce logistical costs.
The development of a commercial site in Canada is favourable for launch vehicle clients in the United States and Europe, given the history of strong intergovernmental relationships between the aligned countries, the stability of the Canadian government, ongoing international space-related collaborations (such as with Lunar Gateway¹), and reduced logistical costs. Canada and the United States federal governments announced the completion of a TSA in August 2024, paving the way for US-based launch vehicles and satellites to launch from Spaceport Nova Scotia.
Expected Advantages of MLS in the Market
Maritime Launch Services is entering the market at a critical time when other launch sites in North America are operating at or near capacity. For example, the Space Coast of Florida hosted 109 launches in 2025. This is also a time when the current geopolitical landscape has stressed the importance for Canada to develop sovereign solutions to space launch. Maritime Launch can provide relief for this congested launch environment. Additionally, many launch vehicle developers lack their own designated sites for launching their clients' constellations into orbit. Maritime Launch Services is working towards hosting multiple launch vehicle companies (one customer per launch pad) that could each conduct eight or more launches per year, capable of carrying numerous satellites on each mission. As other nations outside North America recognize the necessity for domestic launch capabilities, but without the required geography to develop their own spaceport, and with the current geopolitical landscape more and more nations and launch vehicle operators are searching for spaceport locations outside of the United States. Maritime Launch's North American location, a broad range of launch inclinations, ease of access to the site, temperate weather, proximity to the satellite market, and a commercial offering for clients. The backlog at United States sites, combined with the advantages of the Nova Scotia site over other locations outside North America, creates a strong anticipated competitive edge for our offerings to the industry.
¹ Canadian Space Agency
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
Pathfinder Launches to Gain Flight Heritage
The Company's development strategy is a phased approach aimed at achieving full orbital launch capability by the end of 2027, with additional sub-orbital and hypersonic launches already planned for 2026 following the recent successful launch in November 2025. This step-by-step method fosters the development of the land and the Spaceport, allows for collaboration with federal regulators at Transport Canada to adjust the existing regulatory framework to the commercial context, and enables earlier revenue generation through small launchers, including both suborbital and orbital missions.
To date, activities have included the initial design of the Spaceport and the construction of the road system throughout the land leading to and within the Spaceport. The first of four launchpads, included in the current phase of development, has been completed (and successfully deployed). Additional structures to be completed include the payload processing facilities, a launch control center, control of public access to the Spaceport, and regulatory approval for the launch in coordination with Transport Canada and NavCanada (for clearing airspace).
The satellite constellation market dictates a long-term need for a larger launch vehicle. There is already a strong market niche for the foreseeable future for a medium-class launch vehicle to support the tens of thousands of satellites in development across numerous constellations for global broadband and near-earth imaging. As the medium launchers in development reach flight readiness, the Company will be well positioned to offer launch pads for lease to them, in addition to the small launchers that will continue service from the Company's site.
Given the market need, the longer-term focus for the Company and the Spaceport is to eventually support multiple launch companies operating their vehicles several times per year, including a medium-class launcher. Accordingly, alongside the launch of smaller vehicles, construction on the Spaceport will continue to develop the necessary infrastructure to accommodate the launch of medium-class launch vehicles. Capacity for medium-class launch vehicles is a primary goal in the Spaceport's development, as this aligns with the broader growth of launch vehicles in the industry. Management anticipates that the launch of medium-class vehicles from the Spaceport will complement the full offering to industry alongside the small launchers enabled for use at the Spaceport. Medium launch vehicles can deploy large constellations in one launch, with an average launch capacity of five tons to LEO.
Competitive Advantages of the Company and the Spaceport
Management believes that the combination of location, non-government ownership, diverse launch offerings, orbits, schedule flexibility, cost benefits, simplified logistics, and additional demand for launch will make the Spaceport a key asset for the commercial space industry that cannot be replicated at other locations in North America.
Beyond the wide range of launch inclinations offered at the site, the Spaceport is situated in Nova Scotia, a high-tech province rich in universities, which serves as the base for the Canadian naval fleet. It is adjacent to a wind farm for electricity, less than one kilometer from a deep-water seaport, and 50 km from a major super port, as well as a transnational rail line. The launch site leases at the Spaceport are expected to be offered at competitive rates comparable to those of other spaceports providing similar services. Additionally, Canada has a significant satellite manufacturing industry, and local basing is anticipated to encourage this industry to prioritize and co-locate near the Spaceport, thereby keeping launch spending domestic and reducing logistical costs.
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
Non-government Ownership of the Spaceport
A key differentiator for the Spaceport Nova Scotia launch site is its private ownership. As already noted, almost all launch sites in the world are government-owned and operated. This results in significant differences in launch priority between government missions and commercial satellites. A key advantage is the ability to launch when the commercial client desires and to their preferred orbit, rather than waiting for an available time slot at a government range and being launched into an orbit that may limit the satellite's effectiveness or shorten its lifespan due to the energy required to move to a different orbital plane. Additionally, launching from a government range is further complicated by their proximity to highly congested population centers, their age of multiple decades, and the substantial outdated processes that must be followed. A commercial site, in contrast, is responsive to the launch needs of the launch vehicle clients and their satellite customers.
Access to polar/SSO inclinations
The Spaceport location allows the Company to support a large range of inclinations for small LEO satellites, a growing segment of the launch industry, according to the BryceTech Data. These satellites will be primarily destined to the Polar/SSO launch trajectories. The Company will be able to offer access to these trajectories from the Spaceport, whereas the current launch sites in the United States supporting similar inclinations give priority to launches for government programs or cannot achieve these launch inclinations for safety overflight reasons.
Compliance with certain US regulations
The location of the Spaceport will comply with the United States International Traffic in Arms Regulations and the terms of the Technology Safeguard Agreement, which may provide a crucial differentiator for certain customer payloads when compared to competitors located outside North America.
Low costs for initial constellation deployment
After testing the initial satellites, constellation launchers generally prefer to launch their clients' batches of satellites in the most cost-effective manner to begin service. Depending on the satellite mass of the constellation operator, larger launchers are better positioned to accommodate new constellation launches and can carry a greater number of satellites per mission at a lower cost per kilogram. For smaller-mass constellation satellites, the launchers are expected to be competitive in cost and capable of deploying a reasonable number of spacecrafts simultaneously, depending on the launch vehicle company's offerings. Additionally, as the satellites reach the end of their short service lives in orbit, the capacity to replace smaller numbers of satellites will be crucial for clients to sustain their aging constellations.
Cost-effective and responsive launch for constellation replenishment
New constellation operators tend to experience a higher incidence of satellite failures due to the use of non-radiation-hardened components in their spacecraft. Constellation operators will need to replenish their failed satellites promptly to maintain the necessary number of satellites per orbital plane for dependable network service. Medium-sized launch vehicle providers, capable of lifting one ton or more, should be well-equipped to replenish small batches of satellites at once. Small satellite launch vehicles, which support only 150-300 kg payload ranges, are not cost-effective for constellation replenishment. The Company's flexible launch inclinations, ranging from 45 to 98 degrees, are well-suited to the needs of many potential satellite clients. For comparison, according to the Federal Aviation Administration's Office of Commercial Space
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
Transportation, the Kennedy Space Center Spaceport 39 offers a range of inclinations from 39 to 57 degrees and cannot accommodate polar or SSO launches because the launch vehicle would have to traverse large population centers. The Spaceport will not need to overfly any population centers to achieve the specified launch inclinations.
Potential for rideshare launches
According to available BryceTech Data, a large proportion of the recent satellites launched in the "NewSpace" sector have been launched using medium-sized launch vehicles with a launch integration partner to assemble the spacecraft missions from various customers and to program their deployment with a chosen launcher. Some small satellite launch vehicles with a launch capacity of less than 300 kg can launch 3-30 microsatellites (weighing 10 to 100 kg each) at once. Medium launch providers can launch more than 50 microsatellites at a time at a better price per kilogram. These satellites are primarily destined for the polar/SSO launch trajectory, which is accessible from the Spaceport site. The only launch sites in the United States supporting similar inclinations are located in California and Alaska and prioritize government programs over commercial launches.
Diversified Launch Offerings - Small Class Vehicles
The focus on the phased approach to launch has generated significant interest from launch vehicle developers across Europe and North America. The Company and the first launch client, Reaction Dynamics Lab Inc. ("Reaction Dynamics") finalized an equity investment and facility usage agreement in August 2025. In addition, subsequent to year end, the Company announced the signing of an MOU with Innospace (South Korea) and is in active discussions with multiple launch vehicle companies, the total of which exceeds the number of launch pads being developed in the current phase. Most of these companies have similar facility needs, which allows for the site's development of launch support infrastructure to continue while the best option becomes clear. Payload capacities range from 150 kg to 1,250 kg. Additionally, all the facility support development required for the small class launchers directly applies to all future launch facility needs.
Canadian Domestic Launch Capability
The Government of Canada recognizes the need for domestic rocket launch capability as an important national strategic asset, especially in the current geo-political context and Canada's relationship with the United States.
Given the evolving geopolitical environment, Canada recognizes that it cannot assume guaranteed or uninterrupted access to U.S. space infrastructure under all circumstances. Changes in U.S. trade, national security, export control, and foreign policy frameworks, as well as broader shifts in cross-border relations, may increase the risks associated with reliance on foreign space launch capacity for critical capabilities. In an era where secure and sovereign access to space is fundamental to national security, economic resilience, and technological autonomy, MLS believes Canada should prioritize the development of domestic launch capability. Building and operating launch infrastructure within Canada will also foster economic development throughout Nova Scotia and provide resiliency against policy or regulatory changes outside Canada.
The lack of access to space launch capabilities in the US will have national ramifications for Canada's communications and surveillance technologies, further emphasizing the strategic importance of domestic
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
launch capabilities in Canada. MLS is well positioned to accommodate the wide range of launch inclinations required by the satellite market. Not only can the MLS spaceport accommodate inclination ranges from 45 degrees to 98 degrees, but MLS can also deliver payloads to geosynchronous transfer orbits, to the International Space Station ("ISS") as well as newer commercial space stations in development, if called upon. The domestic launch capability in Canada will also signify a commitment alongside Five Eye partner countries: the USA, UK, Australia, and New Zealand. Canada will be positioned to offer capacity and resiliency to US Space Force operations in Florida should any event disrupt operations along the Florida Space Coast, such as the recent hurricane Milton that crossed Florida and impacted the Florida Space Coast. The facility will also provide an outlet for overflow demands for launches, given that the launch tempo in Florida is approaching near capacity. The Canadian and US governments announced in August 2024 the completion of the TSA negotiations. Similar discussions are being undertaken to codify the relationship with other European countries with launch vehicles in development, by defining similar frameworks.
As noted above, MLS has signed its first launch client and has two additional letters of intent with separate launch vehicle developers and is working on similar launch vehicle letters of intent with multiple other partners. These launch vehicles are being developed and funded through each manufacturer's own company means and have much smaller launch facility infrastructure requirements. MLS is also working directly with three US companies with legacy flight heritage in the industry dating back to the Apollo missions to consider their launch vehicles and/or key subsystems that can enhance the offering at the site through the incorporation of their subsystems into existing systems or as standalone, additional offerings to the satellite industry.
MLS is developing a spaceport intended to support a range of launch vehicles and is on a path to bring full orbital launch capability to Canada. MLS achieved its first launch of a smaller suborbital rocket to obtain flight heritage in July 2023 and a further successful suborbital launch in November 2025 (and additional launches scheduled for 2026).
Employees, Specialized Skill, and Knowledge
As of the date of this MD&A, Maritime Launch has seven full-time employees, along with several contract personnel and advisors in Canada and the United States. This includes specialists and industry experts who will contribute to the operation of the Spaceport, the design and manufacturing of the launch vehicle, the design and construction of the Spaceport, satellite sales and marketing, government regulatory expertise, investor relations, and public company operations. Additionally, the creation of the Advisory Board (established March 2023) offers multiple decades of industry experience in launch vehicle development, launch site development, satellite development, and space law, enhancing the Maritime Launch team's skills and resources.
The composition of the Advisory Board is presently as follows:
| ADVISORY BOARD MEMBER | BACKGROUND |
|---|---|
| Sarah McLean | VP, Communications and Corporate Affairs at Maritime Launch Services (Advisory Board Chair) |
| Hon. Stephen McNeil | Former Premier of Nova Scotia (2013 – 2021) |
| Donna Lawler | Principal at Azimuth Advisory, Space Law Specialists |
| Cory Bell | President and CEO of Lindsay Construction |
| Colonel Lee Rosen | Co-Founder and President of Think Orbital Inc. |
| Jeffrey Manber | Co-Founder of Nanoracks, President of International and Space Stations for Voyager Space |
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
[email protected] | maritimelaunch.com
The Land and the Spaceport
The location of the Spaceport is an approximately 334-acre parcel situated within the Municipality of Guysborough in the Province of Nova Scotia, near the town of Canso (the "Land"). The Land is owned by the Province of Nova Scotia and is subject to a crown lease (the "Land Lease"), which was signed effective August 24, 2022. The Land Lease has an initial term of 20 years and an initial annual rent payment of $13,500. The Land Lease also provides for, among other inclusions, a renewal period of 20 years and certain rent adjustment clauses. The Land Lease can be canceled by either the lessee or the lessor by providing 60 days' written notice to the other party.
The Spaceport is being constructed in three distinct areas within the 334-acre leased site: vertical launch pad areas for small launchers, launch vehicle and payload processing capabilities, and a control center area. The initial facility layout was developed as part of the site selection process in 2016 to ensure the location was safe for any nearby population and downrange. This analysis was reviewed, approved, and accepted by Transport Canada, the federal regulatory body for space launches in Canada. This approval prompted NavCanada to conduct an aeronautical study defining the restricted airspace needed for a launch, which was completed in 2019. The Spaceport's initial road design, created by DesignPoint, has been completed, including a geotechnical evaluation to assess road overburden. The Department of Natural Resources authorized the development of the initial roads to support the geotechnical evaluation for design, and those initial roads into the site are complete. Upgrades to the roads have now been finished, as has the drilling of the test well sites for water for the launch pad and integration facility. The site layout design is tailored for the multi-vehicle lease model to adjust the layout to accommodate multiple small launchers.
The environmental assessment of the land was approved in June 2019, and in August 2022, the Company received approval from the Province of Nova Scotia to begin construction. The approval process required the Company to provide numerous plans and studies, including the wildlife management plan, noise monitoring plan, air monitoring plan, water monitoring plan, erosion control plan, and various noise and launch vehicle emissions studies.
MLS purchased a 7-acre parcel of private land near the proposed location of the launch pad in June 2021 and has completed building out a pad site for a ground station for their client Leaf Space. This ground station came online in November 2025 and provides the spaceport with its first revenue as a hosting site for the client (US$ 100,000 per year). The Company received full commercial rezoning utilization from the Municipality of Guysborough.
On January 27, 2026, the Company acquired 19.4 acres of land from the municipality of Guysborough during the period that is strategically located north of the Sable Wind Farm on the southern border of the town of Canso. The land is where the permanent site access and security checkpoint will be constructed, as well as a specialized satellite assembly and test facility.
New Space Business Opportunities Are Increasing
As space becomes more accessible and capital investment in space companies increases, the opportunity for Maritime Launch Services is directly impacted. The demand for launch services has risen while the availability of sites with the range of capabilities offered by the location in Nova Scotia has remained stagnant. As noted, the existing launch sites in North America are approaching full capacity, and management is not currently aware of other identified launch site locations that provide a comparable combination of geographic and logistics equivalent to Spaceport Nova Scotia. Given the significant barriers
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to entry for a launch site, should a viable site be identified, the typical process to develop one would take several years of environmental reviews to even reach the point of beginning construction.
Government Agencies are Seeking Increased Commercial Collaboration
The growing commercial space economy has resulted in government customers, including civilian space agencies and defense departments, seeking commercial collaboration for launch support activities. This has been emphasized by the Government of Canada via its recently announced "Defense Industrial Strategy," projects such as the Earth Observation Service Continuity program, the Defense Enhanced Surveillance from Space program, and the Enhanced Satellite Communication Project – Polar, all of which will require launch services. This trend was affirmed during the three months ended March 31, 2026, when the Company signed a ten-year, $200 million launch pad lease agreement with the Canadian Department of National Defence ("DND") on March 16, 2026, marking the Company's first major long-term government customer commitment.
The Pace and Density of Space Missions are Increasing
The intensity of new business development is rapidly increasing across the industry. Government agencies have raised demand for space-based initiatives for Earth observation, space exploration, and space-based communication, while commercial customers are exhibiting similar needs as they secure record levels of financing. The industry has also expressed a strong interest in suborbital launches for scientific experiments, testing systems prior to orbital launches, and developing high-velocity tracking capabilities. This market segment has grown significantly in recent years.
Financial Support Received from Provincial and Federal Governments
The Government of Canada has provided meaningful support for Maritime Launch's development of Canada's first commercial spaceport. Regulatory support and modernization were announced by the Minister of Transport in January 2022, enabling a clear framework for commercial space launch operations in Canada. Building on that framework, on April 21, 2026 the Government of Canada introduced Bill C-28, the Canadian Space Launch Act, which would establish Canada's first dedicated federal legislative framework for commercial space launch and re-entry activities. Bill C-28 has passed first reading and is proceeding through second reading in the House of Commons. This was followed by the successful negotiation and announcement of the US-Canada TSA in August 2024. The TSA is a critical step toward fostering US partnerships and ensuring compliance with security protocols. The Company received a $120,000 loan from ACOA in the fall of 2024 to build a ground station on site at Spaceport Nova Scotia in partnership with Leaf Space (the first revenue-generating customer). This tangible support demonstrates the Canadian Government's recognition of the strategic importance of space launch infrastructure for Canada's national defense, economic growth, and space sector innovation.
In 2023, the Province of Nova Scotia approved Maritime Launch for an initial qualification of $13.2M for the development of Spaceport Nova Scotia's launch vehicle integration facility on site. The Nova Scotia CITC is an annualized reimbursement program (funds need to be spent and then applied for reimbursement via tax filings in the year following completion of the project) designed by the Government of Nova Scotia to drive economic growth and incentivize development within Nova Scotia. The program provides significant financial advantages to eligible corporations that invest in infrastructure and capital equipment for approved projects located in Nova Scotia. In 2024, the Province of Nova Scotia approved the Company's eligibility for an additional $7.5M in reimbursements under the CITC for the satellite processing facility project, bringing the total to $20.7 million in qualified projects under the provincial program. The Company will start
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making reimbursement claims in 2027. These provincial reimbursement programs are non-repayable and will enhance Spaceport Nova Scotia's competitive position. Coupled with the CITC program is the Atlantic ITC program, for which the Company is automatically qualified when the CITC qualification is approved. This comprises an additional 10% reimbursement for qualified infrastructure.
On June 6, 2025, the Company announced that it obtained additional approval from the Province of Nova Scotia for approximately $10.5M of refundable tax credits under the Capital Investment Tax Credit (CITC) for an additional small launcher launch pad at the Spaceport.
In October 2025, the Company received a $10,000,000 Senior Credit Facility from Export Development Canada ("EDC") to further progress the construction of the Spaceport.
See also the "Subsequent Events" section of this document, as well as the accompanying notes to the interim consolidated financial statements as of March 31, 2026.
Selected Financial Information
On March 16, 2026, the Company entered into a ten-year lease agreement with the DND for a launch pad at Spaceport Nova Scotia. The contract has a total value of $200 million, comprising annual lease fees of $20 million from April 1, 2025 to March 31, 2035, with the first $20 million payment received on March 31, 2026. The DND agreement is the most significant commercial development in the Company's history and was the dominant driver of the financial results in the quarter. It produced the Company's first material revenue ($921,649 of lease revenue) recognized for the period from the lease commencement date of March 16, 2026 to March 31, 2026 (Q1 2025 - nil), and underpinned the substantial improvements in cash, working capital, and total assets reported at March 31, 2026 (see the Selected Financial Information table below and the Liquidity and Capital Resources section). The remainder of the $19.08 million first-year payment is recorded as deferred revenue and will be recognized over the period ending March 31, 2027.
For three-month period ended March 31, 2026 and March 31, 2025
The following table contains selected financial information for the three months ended March 31, 2026, as well as comparative results for the three months ended March 31, 2025, as well as annual results for the years ended December 31, 2025, and December 31, 2024.
| Three months ended March 31, 2026 | Three months ended March 31, 2025 | Year Ended December 31, 2025 | Year Ended December 31, 2024 | |
|---|---|---|---|---|
| Revenue | 946,603 | - | 14,980 | - |
| Income (loss) and comprehensive income (loss) for the period | (1,094,254) | 322,066 | (47,283,982) | (6,216,547) |
| Total assets | 48,279,543 | 14,133,936 | 24,958,220 | 14,104,938 |
| Working capital (deficiency) | 659,152 | (14,194,323) | 3,490,553 | (17,063,200) |
| Shareholders' equity (deficiency) | 17,793,193 | (474,421) | 18,154,912 | (3,309,488) |
| Loss per share | (0.00) | 0.00 | (0.09) | (0.01) |
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
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Results of Operations: Three Months Ended March 31, 2026
Net income (loss) and comprehensive income (loss)
For the three-month period ended March 31, 2026, the Company had a net loss and comprehensive loss of $1,094,254, as compared to net income and comprehensive income of $322,066 for the three-month period ended March 31, 2025, a decline of $1,416,320. The decline is driven principally by interest and accretion expense of $995,512 (comprised of $1,050,338 interest expense, net of interest income of $54,826) (Q1 2025 — $5,357). This decline arose mainly from the EDC Senior Credit Facility (entered into in October 2025) including a $2,500,000 increase in the estimate of arranging fees payable to EDC triggered by receipt of the first DND lease payment, accretion of issuance costs of $205,184, and accrued interest and commitment fees. Total borrowing costs that were capitalized to the spaceport were $1,802,124, with the remainder of $1,045,892 being recorded as interest expense. The current period also reflects partial offset from the recognition of $946,603 of revenue (Q1 2025 - nil), comprised of $921,649 of lease revenue under the new DND launch-pad lease and $24,954 of hosting services revenue. The prior-period comparative included a non-cash $1,271,506 gain on fair value adjustment of convertible debentures (those debentures were retired in November 2025), without which Q1 2025 would have been a net loss.
Net income (loss) and comprehensive income (loss) excluding non-cash transactions
Excluding all non-cash transactions from the operating results would have resulted in a net loss of $1,016,732 for the three months ended March 31, 2026, compared to a net loss of $852,332 in the comparative period in the prior year, an increase in net loss of $164,400. The increase was driven primarily by higher cash operating costs, including administration expenses up $169,153 and wages and salaries up $115,535, together with $1,045,892 of cash interest expense recognized on the EDC Senior Credit Facility (Q1 2025: $5,357). These increases were partially offset by $946,603 of revenue recognized in the current period (Q1 2025: nil) and a $93,085 decrease in professional services costs.
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The expenses and net loss and comprehensive loss incurred during the three months ended March 31, 2026, and March 31, 2025, are detailed in the following table.
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | Period over Period Change ($) | Year over Year Change (%) | |
|---|---|---|---|---|
| Revenue | 946,603 | - | 946,603 | 0% |
| Administration | 206,723 | 37,570 | 169,153 | 450% |
| Professional services | 372,352 | 465,437 | (93,085) | (20%) |
| Stock-based compensation | 67,956 | 88,209 | (20,253) | (23%) |
| Amortization | 9,566 | 8,899 | 667 | 7% |
| Wages and salaries | 454,113 | 338,578 | 115,535 | 34% |
| Total operating expenses | 1,110,710 | 938,693 | 172,017 | 18% |
| Income (Loss) from operations | (164,107) | (938,693) | 774,586 | (83%) |
| Fair value adjustment on convertible debentures | - | 1,271,506 | (1,271,506) | (100%) |
| Other income (expense) | 69,630 | - | 69,630 | -% |
| Interest and accretion (expense) income | (995,512) | (5,357) | (990,155) | 18,483% |
| Foreign exchange (loss) gain | (4,265) | (5,390) | 1,125 | (21%) |
| Net income (loss) and comprehensive income (loss) for the period | (1,094,254) | 322,066 | (1,416,320) | (440%) |
Administration expenses
For the three months ended March 31, 2026, the Company incurred administration expenses of $206,723, as compared to $37,570 for the three months ended March 31, 2025, an increase of $169,153. The increase reflects higher activity at Spaceport Nova Scotia following the November 2025 launch and ongoing commercialization, including travel, insurance, office, and other administrative costs incurred in support of the active DND launch-pad lease and ongoing customer engagements.
Professional services
For the three months ended March 31, 2026, the Company incurred professional services costs of $372,352, as compared to $465,437 for the three months ended March 31, 2025, a decrease of $93,085. Q1 2025 professional services were elevated by legal, accounting, and advisory fees associated with the debenture extension (Amendment 3), the February 2025 private placement, and conversion of shareholder loans, none of which recurred in Q1 2026. Q1 2026 professional fees reflect ongoing public-company costs together with services in support of the DND lease, the EDC facility, and continued spaceport development.
Stock-based compensation
Stock-based compensation expense for the three months ended March 31, 2026, was $67,956, compared to $88,209 for the three months ended March 31, 2025. Stock options previously subject to vesting on the November 2025 launch milestone became fully vested in 2025; Q1 2026 expense relates to ongoing service-vested amortization of prior grants and the new options granted during the quarter (750,000 options at an exercise price of $0.39).
MARITIME LAUNCH
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Wage and salaries expenses
For the three months ended March 31, 2026, the Company incurred wages and salaries expenses of $454,113 (including independent director fees), as compared to $338,578 during the three months ended March 31, 2025, an increase of $115,535. The increase reflects higher headcount and modest wage increases, payroll tax withholdings on director's fees, and the addition of one board member added to director's fees.
Fair value adjustment on convertible debentures
All convertible debentures were retired in November 2025 through forced conversion to common shares. As a result, no fair value adjustment expense was recognized in respect of convertible debentures for the three months ended March 31, 2026.
Interest and accretion expense
During the three months ended March 31, 2026, the Company incurred interest and accretion expense of $995,512, compared to $5,357 during the three months ended March 31, 2025. Interest and accretion expense in the current period arises from the senior credit facility entered into with EDC in October 2025, as noted above.
Summary of Quarterly Results
The following table contains selected financial information for the Company for the past eight quarterly periods.
| Revenue $ | Net income (loss) and comprehensive income (loss) $ | Total assets $ | Working capital (deficiency) $ | Shareholder equity (deficiency) $ | Income (Loss) per Share $ ** | |
|---|---|---|---|---|---|---|
| June 30, 2024 | Nil | (569,928) | 13,866,626 | (13,239,336) | 157,782 | (0.00) |
| September 30, 2024 | 41,920* | (742,510) | 13,940,092 | (13,742,697) | (155,431) | (0.00) |
| December 31, 2024 | (41,920)* | (3,280,357) | 14,105,938 | (17,063,200) | (3,309,488) | (0.00) |
| March 31, 2025 | Nil | 322,066 | 14,133,936 | (14,194,323) | (474,421) | 0.00 |
| June 30, 2025 | Nil | (1,483,099) | 13,907,049 | (14,475,316) | (1,183,916) | (0.00) |
| September 30, 2025 | Nil | (5,745,870) | 13,981,612 | (20,011,214) | (6,442,336) | (0.00) |
| December 31, 2025 | 14,980 | (40,377,078) | 24,958,220 | 3,490,553 | 18,154,912 | (0.06) |
| March 31, 2026 | 946,603 | (1,094,254) | 48,279,543 | 659,152 | 17,793,193 | (0.00) |
- As noted above, revenue previously recognized has been adjusted and recorded as a cost recovery for accounting purposes
** The sum of Loss Per Share does not necessarily equal the annual total as a result of rounding.
MARITIME LAUNCH
Suite 303, 1883 Upper Water Street, Halifax, Nova Scotia B3J 1S9
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Going Concern
At March 31, 2026, the Company has sufficient sources of cash and operating cash flows to meet its ongoing needs. At quarter end the Company had approximately $23.5 million in net cash (cash on hand less the balance owing on the senior credit facility) and $0.7 million in positive working capital. The total cash operating expenses in the three months ended March 31, 2026 were approximately $1.03 million. Additional capital expenditures to complete development of the Spaceport will be contracted only once sufficient capital is on hand to complete those contracts.
See also the "Subsequent Events" section of this document.
Liquidity and Capital Resources
At March 31, 2026, the Company reported current assets of $30,730,138, current liabilities of $30,070,986 and positive working capital of $659,152, as compared to current assets of $9,939,391, current liabilities of $6,448,838 and positive working capital of $3,490,553 at December 31, 2025.
See the Subsequent Events Note at the end of this document.
Export Development Canada ("EDC") Senior Credit Facility
On October 24, 2025, the Company entered a non-revolving secured term loan credit facility ("loan agreement") in the maximum amount of $10,000,000 with EDC. The first $4,768,871 was received at the time of closing and no further disbursements under the loan agreement have been made as of the date of this MD&A. The loan is to be used to fund the design, engineering, financing, development, acquisition, ownership, construction, equipping, testing, repair, operation, maintenance, commercialization, and use of the spaceport. The outstanding principal bears interest at the Canadian Overnight Repo Rate Average ("CORRA") +7% per annum, payable quarterly and originally matured on June 1, 2026; on February 24, 2026, the Company requested and was granted a maturity date extension to January 4, 2027 in accordance with the terms of the facility, with all other terms and conditions unchanged. The loan is secured by all underlying assets of the Company. Commitment fees, at an annual rate of 35% of the Margin (of 7%) on the undrawn portion are payable quarterly (with the first quarter being capitalized to loan principal). Arranging fees determined based on 6.25% of Gross Business Revenue are payable on receipt of the revenue, subject to a maximum fee of $2,500,000.
As at March 31, 2026, the Company's estimate of arranging fees payable increased by $2,500,000 (2025 - $nil), payable upon receipt of payment from DND (recorded as interest expense). In addition, accrued interest of $111,795, commitment fees of $31,037, and accretion of issuance costs of $205,184 were recognized in the period. Total borrowing costs of $1,802,124 were capitalized to the Spaceport during the quarter (March 31, 2025 - $nil), with the remainder of $1,045,892 recorded as interest expense. As of the date of this MD&A, the drawn amount of the loan has been repaid. The loan remains open for future use if deemed necessary by the Company. Refer to Note 9 of the interim consolidated financial statements as of March 31, 2026.
Convertible Debentures
For transactional history prior to 2026, please refer to both the 2024 and 2025 Annual audited Financial Statements and 2025 MD&A of the Company.
MARITIME LAUNCH
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The Company had 2021 and 2023 Convertible Debentures outstanding during the prior year which were extinguished and retired on November 12, 2025, upon the conversion of the debentures and accrued and outstanding interest to common shares.
During Q1 2025, a decrease in the fair value of the convertible debentures of $1,271,506 was recorded. A redemption of principal amount of $50,000 of debentures and conversion of $500,000 of debentures occurred during the quarter.
Off-Balance Sheet Arrangements
Other than as described herein, the Company has no off-balance sheet arrangements.
Related Party Transactions
During the three months ended March 31, 2026, and March 31, 2025, the Company entered into the following related party transactions:
| March 31, 2026 | March 31, 2025 | |
|---|---|---|
| Management Compensation attributable to the Chief Executive Officer, Chief Financial Officer | $220,300 | $149,135 |
| Director's fees | $60,000 | $48,000 |
| Non-cash stock-based compensation attributable to the Chief Executive Officer, Chief Financial Officer and Directors | $nil | $45,700 |
These transactions are in the normal course of operations and are measured at the amount of consideration established and agreed to by the related parties. Refer to Note 12 of the interim consolidated financial statements as of March 31, 2026.
Outstanding Share Data
| Issued and Outstanding May 14, 2026 | Issued and Outstanding March 31, 2026 | Issued and Outstanding December 31, 2025 | |
|---|---|---|---|
| Common Shares | 760,204,733 | 756,621,400 | 750,555,382 |
| Stock Options | 25,599,999 | 29,183,332 | 34,349,995 |
| Warrants | 8,899,165 | 8,899,165 | 8,899,165 |
See the Q1 2026 Interim Financial Statements and the 2025 Annual Audited Financial Statements for the year ended December 31, 2025, for additional information with respect to common shares, stock options, and warrants.
MARITIME LAUNCH
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Subsequent Events
Stock Option Exercises
On April 13, 2026, a board director elected to exercise their stock options. A total of 2,250,000 options were exercised at $0.167 per common share for gross proceeds of $375,750.
On April 20, 2026, an option holder elected to exercise their stock options. A total of 833,333 and 500,000 options were exercised at $0.05 and $0.07 per common share, respectively, for gross proceeds of $76,667.
EDC Senior Credit Facility Repayment
On April 10, 2026, the Company repaid the principal amount outstanding on the EDC Senior Credit Facility together with accrued interest and commitment fees, totaling $5,038,757. The credit facility remains open and available for future draws if required by the Company. The Company will continue to make payments on the arranging fees as they become due.
Little Dover Land Purchase
On May 11, 2026, the Company completed the purchase of land located at Dover Road, Portage Cove, Nova Scotia, in Guysborough County, for total consideration of $358,698. The acquisition was funded through cash on hand. The land was acquired for the purpose of future development.
Risk Factors
Risks and uncertainties related to economic and industry factors are discussed in detail in the fiscal 2025 annual MD&A filed on SEDAR+ on March 30, 2026, which disclosure is incorporated by reference into this MD&A, as supplemented below:
Customer Concentration
There are a relatively small number of potential customers for the services of the Company. Specifically, approximately 97.4% of the Company's revenue generated from spaceport operations is derived from its lease agreement with DND. Therefore, the Company is reliant on the continuation of that lease agreement, and any disruption of DND's lease or financial condition could adversely affect the Company's financial condition and results of operations. There is no certainty that DND will be willing or able to perform its payment obligations under its lease agreement. DND has not provided any security to guarantee these obligations.
Additional risks and uncertainties not currently known to the Company, or that the Company currently deems immaterial, may also impair the operations of the Company. If any such risks occur, the financial condition, liquidity, and results of operations of the Company could be materially adversely affected and the ability of the Company to implement its growth plans could be adversely affected. Additional risks not currently known, or that the Company currently deems immaterial, may also impair the Company's operations. There is no assurance that risk management steps taken will avoid future loss due to the occurrence of the risks described by the Company or other unforeseen risks. The Company's business, financial condition, and operating results could be adversely affected by the occurrence of any risk, known or unknown.