Financial Data and Key Metrics Changes - The company reported $10.8 million in revenue for Q4 2025, marking its first quarter of material income, primarily from a technology license sale to Reed Societe Generale Group for CAD 10.4 million [5][15] - Operating expenses were reduced to $2.6 million, a decrease of $2.1 million or 44% year-over-year, contributing to improved cash burn [16] - The company ended the quarter with a cash balance of approximately CAD 13 million and an undrawn line of credit of CAD 2.4 million [17] Business Line Data and Key Metrics Changes - The Infinite Loop India facility is expected to produce both virgin quality polyester fiber grade PET and bottle grade PET resin, diversifying customer segments [8] - The CapEx for the India project is estimated at $176 million, which includes all installation costs and financing [44] Market Data and Key Metrics Changes - The company is in advanced discussions with several brand companies to secure off-take supply agreements for the Indian facility, which are crucial for project financing [10] - The European project timeline has advanced, with site selection expected to be completed by late Q3 or early Q4 2025 [36] Company Strategy and Development Direction - The company is focusing on low-cost manufacturing and modular construction to reduce CapEx and construction timelines, enhancing overall project performance [12][14] - The strategy includes securing binding customer contracts to facilitate debt syndication for project financing [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the 2027 target for commercial operations, emphasizing that securing customer contracts is the key gating item [23] - The company anticipates robust profitability from the joint venture and expects to reinvest cash flow into future facilities [66] Other Important Information - The company has executed a $600,000 engineering services agreement and expects an additional $750,000 in engineering revenue by year-end [6] - The modular construction approach is expected to significantly enhance project delivery and cost-effectiveness [12][14] Q&A Session Summary Question: What is the latest timeline for the India JV? - The facility is expected to break ground in the second half of this year, with customer contracts being the gating item for project financing [22] Question: What is the cash burn and liquidity outlook? - The company has approximately five to six quarters of liquidity on hand and is discussing with strategic partners to close a financing gap [24][25] Question: Can you comment on the land selection process? - The land selection in Gujarat has been finalized, and negotiations with the local government are ongoing [30][32] Question: What is the CapEx for the India plant? - The total CapEx for the India project is $176 million, which includes all costs associated with the project [44] Question: What are the expected margins from the joint venture? - The company expects robust margins from day one, with a 5% licensing fee covering back office expenses [65][66]

Financial Performance - Loop generated $10.8 million in total revenue for Q4 FY2025, a significant increase from $45 in Q4 FY2024, primarily driven by $10.4 million in licensing revenue[3][20] - The net income for Q4 FY2025 was $6.9 million, a turnaround from a net loss of $5.1 million in Q4 FY2024, attributed to increased revenues and reduced expenses[24] - Revenues increased to $10,889 for the year ended February 28, 2025, compared to $153 for the same period in 2024[37] - Net loss decreased by $6,030 to $15,057 for the year ended February 28, 2025, compared to $21,087 for the same period in 2024, primarily due to a $10,736 increase in revenues[32] Expenses - Research and development expenses decreased by $1.7 million to $1.3 million in Q4 FY2025, compared to $3.0 million in Q4 FY2024, mainly due to reduced plant and laboratory operating expenses[21] - General and administrative expenses also decreased by $647,000 to $1.6 million in Q4 FY2025, down from $2.2 million in Q4 FY2024[22] - Research and development expenses decreased by $4,515 to $6,864 for the year ended February 28, 2025, compared to $11,379 for the same period in 2024[28] - General and administrative expenses decreased by $760 to $9,228 for the year ended February 28, 2025, compared to $9,988 for the same period in 2024[29] - Impairment of equipment expense increased by $8,460 for the year ended February 28, 2025, due to the termination of a joint venture agreement[30] Cash and Assets - Cash and cash equivalents increased to $12,973 as of February 28, 2025, compared to $6,958 as of February 29, 2024[34] - Total assets decreased to $18,578 as of February 28, 2025, from $20,553 as of February 29, 2024[35] - Total liabilities increased to $18,211 as of February 28, 2025, compared to $6,411 as of February 29, 2024[35] Facility Development - Loop's Infinite Loop™ India facility is projected to have an annual production capacity of 70,000 metric tons of polyester fiber and PET resin, with a total estimated investment of $176 million[8][6] - Groundbreaking for the Infinite Loop™ India facility is expected in the second half of 2025, with commercial operations anticipated to start in 2027[9] - Loop is actively negotiating off-take supply agreements with apparel and textile companies for the anticipated output from the India facility[8] - The company is exploring potential locations for its first Infinite Loop™ facility in Europe, focusing on site selection and engineering studies[12] - Loop plans to adopt a modular approach for its European facilities to reduce capital expenditures and construction timelines significantly[13] Strategic Focus - The company plans to focus on the development of large-scale commercial manufacturing facilities following the successful scaling of its technology[28] - The company aims to contribute to a circular economy by reducing plastic waste and recovering waste plastic for sustainable future[40]

Technology and Production - Loop Industries has successfully operated its Terrebonne, Québec depolymerization production facility for the past five years, demonstrating the effectiveness of its technology and supplying Loop PET resin and polyester fiber to customers [220]. - The planned production capacity of the Infinite Loop™ manufacturing facility in India is 70,000 tons per year of Loop branded PET resin and polyester fiber [221]. - The Infinite Loop™ Technology is positioned to respond to the global transition towards a circular economy, allowing for the recycling of waste polyester that would otherwise be disposed of [224]. - The modular construction strategy aims to reduce overall capital expenditures and operating expenses while improving project timelines [234]. - The Company plans to continue the commercialization of its Infinite Loop™ Technology and execute partnerships and commercial agreements with customers [295]. Financial Performance - Revenues for the three-month period ended February 28, 2025 increased to $10,809 from $45 for the same period in 2024, primarily driven by $10,395 in licensing revenue [258]. - For the fiscal year ended February 28, 2025, revenues increased to $10,889 from $153 in 2024, with significant contributions from licensing revenue and engineering fees [267]. - Net income for the three-month period ended February 28, 2025 was $6,882, an increase of $11,973 compared to a net loss of $5,091 for the same period in 2024 [263]. - The net loss for the fiscal year ended February 28, 2025 decreased to $15,057 from $21,087 in 2024, driven by increased revenues and decreased expenses [272]. - The company reported a net loss of $15,057,000 for the year ended February 28, 2025, compared to a net loss of $21,087,000 for the previous year [349]. Expenses and Cost Management - Research and development expenses decreased to $1,306 for the three-month period ended February 28, 2025, down from $3,018 in the same period in 2024, mainly due to a reduction in plant and laboratory operating expenses [259]. - General and administrative expenses for the three-month period ended February 28, 2025 decreased to $1,574 from $2,221 for the same period in 2024, attributed to lower employee compensation and insurance expenses [261]. - Research and development expenses for the fiscal year ended February 28, 2025 decreased significantly to $6,864 from $11,379 in 2024, reflecting a shift towards large-scale commercial manufacturing [268]. - General and administrative expenses for the fiscal year ended February 28, 2025 decreased to $9,228 from $9,988 in 2024, primarily due to reduced insurance and employee compensation expenses [269]. - The Company incurred total expenses of $25.076 million for the year ended February 28, 2025, compared to $21.902 million in the prior year [339]. Cash Flow and Liquidity - The company had cash and cash equivalents of $12,973 as of February 28, 2025, indicating a liquidity position subject to risks and uncertainties [273]. - Net cash used in operating activities decreased to $2,121 for the year ended February 28, 2025, compared to $18,046 for the previous year, attributed to increased revenues and decreased operating expenses [291]. - The Company requires capital to fund its equity contributions to the India JV for the construction of the planned Infinite Loop™ facility in India [359]. - The Company has incurred net losses and negative cash flow from operating and investing activities since its inception, expecting additional net losses as it advances its commercialization efforts [298]. - The Company has determined that current available liquidity will be sufficient to meet its obligations for at least twelve months from the issuance date of the financial statements [358]. Investments and Joint Ventures - Loop received an initial down payment of €10 million for its first technology license sold to Reed Societe Generale Group, with additional milestone payments expected as the project advances [221]. - The total funding required for the India JV is expected to be financed by a combination of debt and equity capital, with Loop and Ester each contributing 50% of the equity capital [248]. - The Company invested $1,954 in its joint venture in India during the year ended February 28, 2025, with total net cash used in investing activities amounting to $2,036 [292]. - The company has a 50% interest in two joint ventures, Indorama Loop Technologies, LLC and Ester Loop Infinite Technologies Private Limited, accounted for under the equity method [353]. Assets and Liabilities - Total current assets increased to $13.852 million as of February 28, 2025, up from $7.988 million as of February 29, 2024 [337]. - The total liabilities as of February 28, 2025, were $18.211 million, a significant increase from $6.411 million the previous year [337]. - Cash and cash equivalents increased to $12,973 million as of February 28, 2025, compared to $6,958 million as of February 29, 2024 [337]. - The accumulated deficit as of February 28, 2025, amounted to $192.027 million, an increase from $176.970 million the previous year [337]. Research and Development - Research and development expenses are primarily related to process development, customer trials, and machinery expenditures, and are charged to expense as incurred [377]. - The Company is eligible for reimbursable Provincial research and development tax credits, which are recorded as a reduction of research and development expenses [381]. - The company recorded research and development tax credits of $85 million for the year ended February 28, 2025, down from $263 million in 2024 [407]. Intellectual Property - The company is focused on protecting its intellectual property and limiting expenses to optimize its liquidity position [303]. - As of February 28, 2025, the net value of patents increased to $1.708 billion from $1.548 billion in 2024, reflecting a growth of approximately 10.3% [415]. - The total cost of patents at the end of 2025 was $2.446 billion, up from $1.996 billion at the end of 2024, indicating an increase of 22.5% [415]. - The company continued to develop the Infinite Loop™ technology and filed various patents globally during the fiscal year ending February 28, 2025 [415].

Financial Data and Key Metrics Changes - The company completed a €20 million financing transaction with Societe Generale, which includes €10 million in convertible preferred security [7][24] - Research and development costs decreased by 25% to $1.38 million, reflecting the natural evolution of the production facility [25] - General and administrative expenses reduced by 13% to $2.15 million, primarily due to lower insurance claims [26] - Cash burn rate for Q3 was $2.8 million, slightly down from $2.9 million in Q2 [27][30] Business Line Data and Key Metrics Changes - The company is focusing on licensing its technology in higher-cost manufacturing countries like Europe and parts of Asia, while deploying capital in low-cost manufacturing countries such as India [8][14] - Engineering services are expected to generate significant revenue, with an estimated $10 million from the Societe Generale project [38][40] Market Data and Key Metrics Changes - The India joint venture is progressing well, with land acquisition and feedstock sourcing from polyester textile waste being prioritized [15][19] - The circular fashion industry is becoming increasingly important, with fashion brands seeking recycled solutions for their materials [16][19] Company Strategy and Development Direction - The company aims to license its technology to generate revenue while focusing on low-cost manufacturing partnerships [8][21] - The strategy includes building a supply chain for spun fiber to meet the needs of fashion companies, expanding its product offerings [18][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the prospects for additional licensing opportunities in high-cost manufacturing countries in Asia [72] - The company is optimistic about the demand for recycled materials in Europe due to upcoming regulations [48] Other Important Information - The company canceled its joint venture with SK due to high manufacturing costs in South Korea, preferring to license technology instead [21][22] - A write-down of polymerization equipment was noted, but it was clarified that this was an accounting measure and the equipment remains in good condition [20][30] Q&A Session Summary Question: Can you remind us what the terms for the additional licensing payments are? - The milestone payments are related to customer contracts and are expected by the end of 2025 or early 2026, depending on project development speed [34][35] Question: What is the timeline for CapEx deployment for your different projects? - CapEx spending for the India project is expected to begin in Q2 2025, with local engineering work being handled by Tata Engineers [56][58] Question: When should we start to see revenue from engineering services? - Revenue from engineering services is expected to start appearing in the next quarter filing [65] Question: What are some milestones to track the India project? - Key milestones include completion of the engineering package and securing customer contracts for feedstock [66][70] Question: Are there additional licensing opportunities outside of Europe? - The company is exploring licensing opportunities in higher-cost manufacturing countries in Asia [72]

Financial Performance - Loop Industries reported a revenue increase of 100% for Q3 FY2025, reaching $52,000 compared to $26,000 in Q3 FY2024[21]. - The net loss for Q3 FY2025 was $11,912, up from $4,244 in Q3 FY2024, largely attributed to the impairment of assets[25]. - Revenues for the nine-month period ended November 30, 2024, decreased by $27 to $81 million, compared to $108 million for the same period in 2023[28]. - The company reported a net loss per share of $0.46 for the nine-month period ended November 30, 2024, compared to $0.34 in the same period of 2023[35]. - Impairment of assets expense increased by $8,460 million due to the termination of a joint venture arrangement, resulting in a net loss of $21,940 million for the nine-month period, up from $15,995 million in 2023[31][32]. Expenses - Total expenses for Q3 FY2025 were $11,964, an increase of $7,694 from $4,270 in Q3 FY2024, primarily due to an impairment charge of $8,460 for machinery and equipment[20][25]. - Research and development expenses decreased by $456 to $1,377 in Q3 FY2025, compared to $1,833 in Q3 FY2024, mainly due to reduced employee compensation and external engineering costs[22]. - General and administrative expenses decreased by $310 to $2,148 in Q3 FY2025, down from $2,458 in Q3 FY2024, primarily due to lower insurance costs[23]. - Research and development expenses decreased by $2,802 to $5,559 million, compared to $8,361 million for the same period in 2023[29]. - General and administrative expenses decreased by $113 to $7,654 million, compared to $7,767 million for the same period in 2023[30]. Assets and Liabilities - Total current assets decreased to $994 million as of November 30, 2024, from $7,988 million in February 2024[38]. - Total liabilities increased to $11,562 million as of November 30, 2024, compared to $6,411 million in February 2024[38]. - Cash and cash equivalents decreased to $323 million as of November 30, 2024, from $6,958 million at the beginning of the period[40]. Strategic Initiatives - Loop closed financing and technology licensing transactions with Reed Societe Generale Group, generating total cash proceeds of $20.8 million (€20 million) to support its commercialization strategy[2]. - The Infinite Loop™ India manufacturing facility is expected to break ground in Q2 2025, with commercial operations anticipated to commence in 2027[8]. - Loop's joint venture with Ester Industries in India aims to produce 100% recycled polyester fiber and bottle-grade PET resin from waste materials[10][11]. - The company plans to utilize proceeds from the Reed transactions to finance its share of the initial equity capital required for the Indian facility[12]. - Loop Industries aims to expand its market presence in Europe and advance joint ventures in India as part of its growth strategy[43]. Revenue Generation - Loop's engineering services division has started generating revenue, with plans to expand service offerings to partners and licensees[17]. - The company plans to utilize impaired equipment in a future commercial production facility, although deployment plans are not fully developed[31].

Sustainability and Technology - Loop Industries is focused on accelerating the shift towards sustainable PET plastic and polyester fiber, utilizing its patented Infinite Loop™ Technology to depolymerize waste PET into virgin-quality resin [86]. - Loop's depolymerization technology can process a wider variety of PET feedstock, including complex and degraded plastics, which mechanical recycling cannot handle effectively [89][96]. - The global market for DMT is experiencing a shortage, and Loop's rDMT offers a sustainable alternative to traditional DMT produced from fossil fuels [96]. - There is a high demand for low-carbon MEG, and Loop's rMEG aims to fulfill this market need by providing a lower carbon footprint recycled alternative [98]. - The Infinite Loop™ Technology is positioned as a key driver for the company's global expansion strategy, focusing on sustainable production of PET and specialty polymers [120]. Financial Performance - Revenue for the three-month period ended November 30, 2024, increased to $52,000 from $26,000 in the same period in 2023, reflecting initial deliveries of Loop™ PET resin [131]. - Revenue for the nine-month period ended November 30, 2024, decreased by $27 to $81 million, compared to $108 million for the same period in 2023 [138]. - Net loss for the three-month period ended November 30, 2024, increased to $11,912,000 from $4,244,000 in 2023, primarily due to an impairment charge of $8,460,000 related to machinery and equipment [135]. - Net loss for the nine-month period increased by $5,945 to $21,940 million, primarily due to the impairment of equipment [142]. - Cash and cash equivalents on hand were $323 million, with current liabilities exceeding current assets by $7,085 million as of November 30, 2024 [143]. Expenses and Cost Management - Research and development expenses decreased to $1,377,000 for the three-month period ended November 30, 2024, down from $1,833,000 in 2023, primarily due to reduced employee compensation and external engineering costs [132]. - General and administrative expenses decreased to $2,148,000 for the three-month period ended November 30, 2024, compared to $2,458,000 in 2023, mainly due to lower insurance costs [133]. - Research and development expenses decreased by $2,802 to $5,559 million, primarily due to a $1,196 decrease in machinery and equipment purchases and a $1,073 decrease in employee compensation [139]. - General and administrative expenses decreased by $113 to $7,654 million, mainly due to a $637 reduction in insurance expenses [140]. - Impairment of assets increased by $8,460 million, reflecting an impairment charge for machinery and equipment due to the termination of a joint venture [141]. Partnerships and Joint Ventures - The partnership with Reed Management SAS allows Loop to retain a maximum equity stake of 50% in future European manufacturing facilities [102]. - Loop entered into a strategic partnership with Ester Industries to form a 50/50 joint venture in India, aiming to produce 70,000 tonnes of rDMT and 23,000 tonnes of rMEG annually using Infinite Loop™ Technology [104][107]. - The initial funding required for the India joint venture is projected to be $165 million, with Loop and Ester each contributing 50% of the equity capital [108]. - Groundbreaking for the India facility is expected in Q2 2025, with construction completion anticipated by late 2026 and commercial operations projected to start in 2027 [112]. Financing Activities - On December 23, 2024, Loop closed financing transactions, issuing 1,044,430 shares of Series B Convertible Preferred Stock at $10.00 per share, raising total cash proceeds of $20,790 [101]. - The company received proceeds of $20,790 million from transactions with Reed, which included the issuance of Series B Convertible Preferred Stock [144]. - Net cash used in operating activities was $8,635 million, a decrease from $14,762 million in the same period in 2023 [156]. - Net cash used in investing activities was $86 million, significantly lower than $5,453 million in the same period in 2023 [157]. - The company borrowed $2,372 million under the Credit Facility during the nine months ended November 30, 2024 [158]. Strategic Goals - The company aims to expand its technology licensing and engineering services to address global demand while focusing internal resources on direct equity investments [103]. - Loop's strategy includes leveraging its technology to enter new markets and cater to a broader range of customers across multiple industries [87]. - Loop aims to assist global consumer goods brands in meeting sustainability commitments through co-branded packaging and recycled materials, potentially commanding premium pricing over virgin materials [125]. - The company plans to utilize the impaired equipment from the terminated joint venture with SKGC in future commercial production facilities [134].

Financial Performance - Loop Industries reported a revenue decrease of $31 to $23 million for the three-month period ended August 31, 2024, compared to $54 million for the same period in 2023[12]. - For the six-month period ended August 31, 2024, revenues decreased by $52 to $29 million compared to $81 million in the same period in 2023[19]. - The net loss for the quarter increased by $88 to $4.839 million, compared to a net loss of $4.750 million in the same period last year[15]. - Net loss for the six months ended August 31, 2024, was $10,028,000, compared to a net loss of $11,751,000 for the same period in the previous year, indicating an improvement of approximately 14.7%[26]. - The company reported a basic and diluted net loss per share of $0.21 for the six months ended August 31, 2024, compared to $0.25 for the same period in the previous year[26]. Expenses and Liabilities - Total expenses for the quarter were $4.9 million, with cash expenses projected to run at approximately $1.0 million per month for the remainder of fiscal 2025[6]. - Research and development expenses decreased by $93 to $1.945 million for the quarter, primarily due to a reduction in employee compensation and plant expenses[13]. - General and administrative expenses decreased by $248 to $2.595 million, mainly due to a reduction in insurance costs[14]. - Total current assets decreased from $7,988,000 as of February 29, 2024, to $2,360,000 as of August 31, 2024, representing a decline of approximately 70.5%[25]. - Cash and cash equivalents decreased from $6,958,000 at the beginning of the period to $1,395,000 at the end of the period, a decline of approximately 80%[26]. - Total liabilities increased from $6,411,000 as of February 29, 2024, to $10,169,000 as of August 31, 2024, an increase of approximately 58.5%[25]. - The company reported a significant increase in accounts payable and accrued liabilities, rising from $2,321,000 to $4,376,000, an increase of approximately 88.5%[25]. Strategic Initiatives - The Infinite Loop™ manufacturing facility in Gujarat, India, is on schedule, leveraging local textile waste as a primary feedstock for producing 100% recycled polyester[4]. - Loop expects to finalize a financing agreement with Reed Management SAS in November 2024, which includes an initial tranche of €10 million in convertible preferred securities[2]. - The company plans to utilize low-cost manufacturing in India to enhance competitiveness while supplying high-quality PET resin and polyester fiber[7]. - Loop's partnership with Ester Industries will facilitate the deployment of capital into low-cost manufacturing countries and a shift towards a licensing model in higher-cost regions[8]. - Loop Industries is pursuing a joint venture with Ester to construct a manufacturing facility in Gujarat Province, India, which is expected to enhance its market position[29]. Sustainability Efforts - The company has patented technology that allows for the depolymerization of waste PET plastic, contributing to sustainability efforts[27]. - Loop Industries aims to close the plastic loop by enabling infinite recycling of its Loop™ PET plastic and polyester fiber without degradation of quality[27].

Technology and Innovation - Loop Industries is in the planning stages for constructing commercial scale facilities utilizing its Infinite Loop™ Technology, with financing discussions ongoing [76]. - Loop's rDMT and rMEG are positioned to address a global shortage in DMT and high demand for low carbon MEG, providing sustainable alternatives to traditional fossil fuel-derived products [82]. - Loop's technology can process a wider variety of PET feedstock, including complex and degraded plastics, which mechanical recycling cannot handle [79]. - Loop's depolymerization technology allows for infinite recycling of plastics without degrading material quality, creating a closed-loop system [80]. - The Infinite Loop™ Technology allows for the production of rDMT and rMEG, with a capacity of up to 70,000 M/T of PET resin output per year [97]. Joint Ventures and Partnerships - The company has entered into a joint venture with Reed Management SAS for a €35 million investment to fund the global commercialization of its technology [83]. - The India joint venture with Ester Industries aims to produce 70,000 tonnes of rDMT and 23,000 tonnes of rMEG annually, leveraging both companies' strengths [86]. - The company has established a strong relationship with Ester, which has been producing Loop™ PET for global brands for the past four years [86]. - The India joint venture (JV) requires initial funding of $165 million, with Loop and Ester each contributing 50% [88]. Financial Performance - Revenue for the three-month period ended August 31, 2024, decreased by $31 to $23, compared to $54 for the same period in 2023 [107]. - Research and development expenses for the same period decreased by $93 to $1,945, primarily due to a $356 decrease in employee compensation [108]. - General and administrative expenses decreased by $248 to $2,595, mainly due to a $233 decrease in insurance expenses [109]. - The net loss for the three-month period ended August 31, 2024, increased by $88 to $4,839, compared to $4,750 for the same period in 2023 [109]. - Revenue for the six-month period ended August 31, 2024, decreased by $52 to $29, compared to $81 for the same period in 2023 [113]. - Research and development expenses for the same period decreased by $2,346 to $4,182, down from $6,528 in 2023 [114]. - General and administrative expenses increased by $198 to $5,506, compared to $5,308 in 2023 [114]. - The net loss for the six-month period ended August 31, 2024, decreased by $1,723 to $10,028, compared to $11,751 in 2023 [115]. Cash Flow and Liabilities - Cash and cash equivalents on hand were $1,395, with an undrawn senior loan facility of $1,008 as of August 31, 2024 [117]. - Net cash used in operating activities was $6,775 for the six months ended August 31, 2024, compared to $11,017 in 2023 [126]. - Net cash used in investing activities was $325 for the six months ended August 31, 2024, compared to $5,290 in 2023 [127]. - The company borrowed $1,587 under the Credit Facility during the six months ended August 31, 2024 [127]. - Current liabilities exceeded current assets by $2,510 as of August 31, 2024 [117]. - The company has a long-term debt obligation of up to $3,410 related to the Financing Facility for the Terrebonne Facility expansion [120]. Future Plans and Capacity - The company anticipates that the financing from Reed will be completed by November 2024, with an initial tranche of €10 million expected [84]. - The planned Infinite Loop™ facility in Ulsan, South Korea, is expected to have an annual capacity of 70,000 metric tons of Loop™ PET resin, with groundbreaking planned for the first half of 2024 [101]. - Construction of the India facility is expected to be completed by the end of 2026, with commercial operations commencing in early 2027 [99]. - The Infinite Loop™ Europe facility aims to supply up to 70,000 metric tons of recycled PET plastic and polyester fiber to the European market [92]. - The company is targeting multi-year take or pay offtake agreements for planned Infinite Loop™ production to enhance project economics [103].

Financial Performance - The net loss for the three-month period ended May 31, 2024, decreased to $5.189 million from $7.001 million for the same period in 2023, a reduction of approximately 26%[7] - The company reported a comprehensive loss of $5.244 million for the three-month period ended May 31, 2024, compared to a comprehensive loss of $6.981 million for the same period in 2023[22] - The net loss for the three-month period ended May 31, 2024, was $5,189, an improvement of $1,812 compared to a net loss of $7,001 for the same period in 2023[41] Expenses - Total expenses for the quarter were $5.285 million, down from $7.088 million in the same quarter of the previous year, representing a decrease of about 25%[22] - Research and development expenses decreased by $2.253 million to $2.237 million compared to $4.490 million in the same period last year, a reduction of approximately 50%[22] - General and administrative expenses increased by $446 to $2,911 for the three-month period ended May 31, 2024, compared to $2,465 for the same period in 2023[42] - The increase in general and administrative expenses was mainly due to a $636 rise in professional fees related to partnerships, partially offset by a $211 decrease in insurance costs[42] - Total expenses for the three-month period ended May 31, 2024, were $5,195, a decrease of $1,833 from $7,028 in the same period in 2023[41] Cash Position - Cash and cash equivalents as of May 31, 2024, were $5.291 million, down from $6.958 million at the end of the previous year[23] - Cash, cash equivalents, and restricted cash at the end of the period were $5,291, down from $22,970 at the end of the same period in 2023[45] Strategic Initiatives - Loop Industries is progressing towards the Infinite Loop™ manufacturing facility in India, focusing on low-cost polyester fiber waste from the textile industry[27] - Loop Industries aims to license its technology to partners in higher-cost manufacturing countries as part of its strategic focus on global low-cost manufacturing environments[39] - The Infinite Loop™ India facility is expected to provide attractive economic returns as part of Loop's strategy to tackle the ongoing plastic waste crisis[39] - Loop Industries is committed to contributing to a circular economy by manufacturing 100% recycled PET plastic and polyester fiber[35] Future Projections - The company projects a prospective run rate for cash expenses of approximately $1 million per month for the remainder of fiscal 2025, excluding project costs[3] - The company is reviewing contingency plans for bridge financing due to its current liquidity position, anticipating the closing of a financing transaction with Reed Management SAS by the end of the second quarter of fiscal 2025[12] Shareholder Information - The weighted average common shares outstanding increased slightly to 47,535,413 from 47,516,104 year-over-year[22] - The decrease in research and development expenses was primarily due to a $1,233 reduction in machinery and equipment purchases, a $527 decrease in external engineering costs, and a $271 decrease in employee compensation expenses[32]

Business Expansion and Joint Ventures - Loop Industries aims to construct commercial scale facilities for its Infinite Loop™ Technology, with financing discussions currently underway [80]. - The India joint venture with Ester Industries is expected to produce 70,000 tonnes of rDMT and 23,000 tonnes of rMEG annually [93]. - Initial funding required for the India JV is projected at $165 million, with both Loop and Ester contributing 50% of the equity capital [96]. - The Infinite Loop™ India facility is anticipated to commence commercial operations in early 2027 [95]. - The India JV will leverage local expertise in sourcing PET plastic and polyester fiber waste feedstocks [92]. - The company is pursuing joint ventures with SKGC in Asia and Europe to build and operate Infinite Loop™ manufacturing facilities [115]. Technology and Sustainability - Loop's rDMT and rMEG are positioned to address a global shortage in DMT and high demand for low carbon MEG, providing sustainable alternatives [89][90]. - The company’s technology allows for the recycling of a wider variety of PET feedstock, including complex and degraded plastics [81]. - Loop's depolymerization technology enables the production of virgin-quality PET resin suitable for food-grade packaging [78]. - Loop's technology offers a closed-loop system for plastic waste, allowing for infinite recycling without degrading material quality [86]. - The Infinite Loop™ Technology aims to transition from fossil fuels to a circular economy by recycling waste plastic into PET plastic and polyester fiber [111]. Financial Performance - Revenue for the three-month period ended May 31, 2024, decreased by $21 to $6, compared to $27 for the same period in 2023, resulting from initial deliveries of Loop™ PET resin [126]. - Research and development expenses for the same period decreased by $2,253 to $2,237, primarily due to a $1,233 decrease in machinery and equipment purchases and a $527 decrease in external engineering costs [127]. - General and administrative expenses increased by $446 to $2,911, mainly due to a $636 increase in professional fees related to partnerships with Reed and Ester [128]. - The net loss for the three-month period ended May 31, 2024, decreased by $1,812 to $5,189, compared to $7,001 for the same period in 2023 [130]. - The company’s liquidity position consists of cash and cash equivalents of $5,291 as of May 31, 2024 [131]. - The Company estimates that current available liquidity and forecasted net cash flows will not be sufficient to meet its obligations and budgeted expenditures for the next twelve months [132]. Cash Flow and Financing - During the three months ended May 31, 2024, the Company used $3,915 in operating activities, a decrease from $5,504 in the same period in 2023, primarily due to reduced operating expenses [142]. - The Company used $176 in investing activities during the three months ended May 31, 2024, compared to $2,122 in the same period in 2023, with investments focused on patent technology [143]. - The Company borrowed $2,517 under the Credit Facility during the three months ended May 31, 2024, while repaying $25 of long-term debt [144]. - The interest rate on the Financing Facility was increased from 2.36% to 3.36% as per the Second Financing Facility Amendment [137]. - The Company has a long-term debt obligation of up to $3,390 related to the Financing Facility, with disbursements totaling $3,390 received to date [135]. - A total of $37 of the principal amount was repaid in monthly installments in the fiscal year ended February 29, 2024, with the remainder repayable in 72 monthly installments [136]. - The Company is seeking additional financing through various means, including debt and equity issuance, but there is no assurance of success [133]. - The Company is in compliance with the minimum equity covenant of the Credit Facility as of May 31, 2024 [139]. - The net decrease in cash for the three months ended May 31, 2024, was $1,667, compared to a decrease of $7,621 in the same period in 2023 [140].