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Loop Industries(LOOP) - 2025 Q1 - Quarterly Results
LOOPLoop Industries(LOOP)2024-07-15 21:21

Financial Performance - The net loss for the three-month period ended May 31, 2024, decreased to 5.189millionfrom5.189 million from 7.001 million for the same period in 2023, a reduction of approximately 26%[7] - The company reported a comprehensive loss of 5.244millionforthethree−monthperiodendedMay31,2024,comparedtoacomprehensivelossof5.244 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,animprovementof5,189, an improvement of 1,812 compared to a net loss of 7,001forthesameperiodin2023[41]Expenses−Totalexpensesforthequarterwere7,001 for the same period in 2023[41] Expenses - Total expenses for the quarter were 5.285 million, down from 7.088millioninthesamequarterofthepreviousyear,representingadecreaseofabout257.088 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 2.237millioncomparedto2.237 million compared to 4.490 million in the same period last year, a reduction of approximately 50%[22] - General and administrative expenses increased by 446to446 to 2,911 for the three-month period ended May 31, 2024, compared to 2,465forthesameperiodin2023[42]−Theincreaseingeneralandadministrativeexpenseswasmainlyduetoa2,465 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 211decreaseininsurancecosts[42]−Totalexpensesforthethree−monthperiodendedMay31,2024,were211 decrease in insurance costs[42] - Total expenses for the three-month period ended May 31, 2024, were 5,195, a decrease of 1,833from1,833 from 7,028 in the same period in 2023[41] Cash Position - Cash and cash equivalents as of May 31, 2024, were 5.291million,downfrom5.291 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,downfrom5,291, 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 1millionpermonthfortheremainderoffiscal2025,excludingprojectcosts[3]−Thecompanyisreviewingcontingencyplansforbridgefinancingduetoitscurrentliquidityposition,anticipatingtheclosingofafinancingtransactionwithReedManagementSASbytheendofthesecondquarteroffiscal2025[12]ShareholderInformation−Theweightedaveragecommonsharesoutstandingincreasedslightlyto47,535,413from47,516,104year−over−year[22]−Thedecreaseinresearchanddevelopmentexpenseswasprimarilyduetoa1 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 527decreaseinexternalengineeringcosts,anda527 decrease in external engineering costs, and a 271 decrease in employee compensation expenses[32]