Loop Industries(LOOP) - 2024 Q4 - Annual Report

Revenue Performance - Revenues for the three-month period ended February 29, 2024, increased by $33 to$45, compared to $12 for the same period in 2023, driven by initial deliveries of Loop™ PET resin [221]. - For the fiscal year ended February 29, 2024, revenues decreased by$20 to $153, compared to$173 for the same period in 2023, attributed to initial deliveries of Loop™ PET resin [227]. - Revenue for the year ended February 29, 2024, was $153,000, a decrease of 11.6$173,000 for the year ended February 28, 2023 [287]. Net Loss and Financial Performance - The net loss for the three-month period ended February 29, 2024, increased by $10,514 to$5,091, compared to a net income of $5,423 for the same period in 2023, largely due to a prior gain on land disposition of$9,980 [224]. - The net loss for the year ended February 29, 2024, decreased by $214 to$21,087, compared to $21,301 for the same period in 2023 [230]. - The Company incurred a net loss of$21.1 million for the year ended February 29, 2024, with net cash flows used from operating activities amounting to $18.0 million [276]. - Comprehensive loss decreased to$21,016,000 from $22,346,000, reflecting a 5.9$0.44, compared to $0.45 in the previous year, indicating a minor improvement [287]. Research and Development Expenses - Research and development expenses for the three-month period ended February 29, 2024, rose by$805 to $3,018, primarily due to an$866 increase in plant and laboratory operating expenses, including an inventory write-down of $817 [222]. - Total research and development expenses for the fiscal year ended February 29, 2024, were$11,379, a decrease of $5,967 from the previous year [226]. - Research and development expenses decreased by$5,967 to $11,379 for the year ended February 29, 2024, compared to$17,346 for the same period in 2023 [228]. - Research and development expenses primarily relate to process development, customer trials, and testing of pre-production samples, and are presented net of related tax credits and government grants [313]. Cash Flow and Liquidity - Cash and cash equivalents on hand were $6,958 as of February 29, 2024, with an undrawn senior loan facility of$2,579 [230]. - Net cash used in operating activities was $18,034 for the year ended February 29, 2024, compared to$34,892 for the year ended February 28, 2023 [244]. - The company has incurred net losses and negative cash flow from operating and investing activities since its inception, with no material revenues from customers [302]. - Management estimates that current available liquidity and forecasted net cash flows will not be sufficient to meet the company's obligations over the next twelve months [303]. - As of February 29, 2024, the Company's available liquidity was $9.5 million, consisting of cash and cash equivalents of$6.9 million and an undrawn senior loan facility of $2.6 million [276]. General and Administrative Expenses - General and administrative expenses for the three-month period ended February 29, 2024, increased by$22 to $2,221, primarily due to an increase in stock-based compensation [223]. - General and administrative expenses decreased by$10,441 to $9,988 for the year ended February 29, 2024, compared to$20,429 for the same period in 2023 [229]. - General and administrative expenses for the year ended February 29, 2024 were $9,988,000, down 51.1$20,429,000 in the prior year [390]. Debt and Financing - The company is pursuing financing for its planned manufacturing facilities, which is critical for moving to the next stage of strategic development [218]. - The Company has a long-term debt obligation of up to $3,390 related to the expansion of the Terrebonne Facility, with repayments structured over 72 monthly installments [234]. - The company is seeking to finalize negotiations for previously announced financing initiatives on acceptable terms [232]. - Total repayments due on the company's indebtedness over the next five years amount to$3,511 [371]. - Interest expense on the Investissement Québec loan for the year ended February 29, 2024, was $84, compared to$86 in 2023 [366]. Inventory and Assets - The company reported total inventories of $102,000 as of February 29, 2024, a decrease from$727,000 in the previous year, with an allowance for inventory write-down of $817,000 recorded [343]. - The total current assets decreased from$36.4 million as of February 28, 2023, to $8.0 million as of February 29, 2024 [282]. - The total stockholders' equity decreased from$33.7 million as of February 28, 2023, to $14.1 million as of February 29, 2024 [284]. Strategic Developments - A strategic partnership with Ester was announced to build an Infinite Loop™ manufacturing facility in India, expected to commence commercial operations in early 2027 [212]. - The planned facility in Ulsan, South Korea, is expected to supply up to 70,000 metric tons per year of Loop™ PET resin, with construction timing currently under review [215]. - The company intends to continue executing its corporate strategy, focusing on commercialization of Infinite Loop™ Technology and securing financing for operations and projects [248]. Stock-Based Compensation - Stock-based compensation expenses were$1,422,000, significantly lower than $10,086,000 in the previous year [294]. - Stock-based compensation attributable to stock options for the year ended February 29, 2024 amounted to$644,000, compared to $1,316,000 in 2023 [393]. - Stock-based compensation attributable to RSUs for the year ended February 29, 2024, amounted to$778, a significant decrease from $8,770 in 2023 [396]. - The total number of outstanding restricted stock units (RSUs) at the end of 2024 was 4,368,897, compared to 3,888,618 at the end of 2023, reflecting an increase of approximately 12.3% [395].