In January, Kitchener-Waterloo-based workforce training platform Uvaro acquired Lighthouse Labs, a coding school, making it a subsidiary. Seven months later, both filed for bankruptcy. Canadian Cyber in Context first reported that on August 1, both companies filed a bankruptcy notice and appointed GlassRatner as their trustee. Websites for both Uvaro and Lighthouse Labs now redirect to the trustee page with bankruptcy documents and a FAQ for creditors and stakeholders.
The FAQ reveals insufficient funding led to the bankruptcy. Uvaro’s documents show they raised capital for the Lighthouse Labs acquisition but began to burn cash due to unmet sales forecasts and delayed government contracts. Both companies ceased operations, and their assets are now managed by the trustee.
Founded in 2013, Lighthouse Labs educated over 40,000 learners in various tech fields. Uvaro aimed to align with AI job market trends through the acquisition, focusing on AI and digital skills training influenced by Canada’s AI programming and funding initiatives.
Uvaro reported Lighthouse Labs had $10 million in annual revenue with growth potential. However, the expected revenue didn’t materialize, causing a deficit with increasing costs and rapid cash erosion. Lighthouse Labs faced similar issues, expecting $3 million in new partnerships that did not close within projected timelines.
Despite efforts to cut costs and seek additional funding, both companies stated they couldn’t secure enough liquidity to remain solvent. Uvaro’s CEO did not comment, while Lighthouse Labs’ CEO noted his departure before the bankruptcy decision.
Lighthouse Labs has nearly $230,000 in assets and over $3 million in liabilities, with RBC as the largest creditor. Uvaro’s filings show nearly $1.6 million in assets and $5.7 million in liabilities, with significant debts to various creditors and its subsidiary Lighthouse Labs.
After the acquisition, Uvaro’s CEO emphasized the importance of AI and upskilling in evolving job roles, while Lighthouse Labs adjusted to the changing market influenced by COVID-19, remote work, and AI. All employees were terminated due to the bankruptcy. The FAQ indicates terminated employees and affected students can make claims through respective federal programs and the trustee. GlassRatner is working to transfer student records and provide course completion updates when available.