Financial Performance - The company reported a loss after tax of $79.2 million in FY23, compared to a loss of $47.8 million in FY22, largely due to higher finance and capital raising costs[832]. - Net cash used in operating activities increased to $52.5 million from $46.0 million, with customer receipts rising by $12.1 million and government grants by $11.7 million[807]. - The Group projects to raise approximately US$27.5 million (A$42.3 million) through the partial use of its US$60 million (A$92.3 million) Capital Equity Facility (CEF) over the next 12 months[905]. - The Company projects net cash outflows from operating activities of approximately US$70.5 million, with net cash inflows from financing activities of US$33 million[871]. - The Group has deferred total payments of $8.9 million to suppliers, with payments required to be made in November 2023[909]. - The Company is not yet profitable and does not expect to generate positive net operating cash flows in the next 12 months[912]. - A material uncertainty exists regarding the Group's ability to continue as a going concern, which may affect asset realizability and liability discharge[913]. Debt and Financing - The total amount borrowed under the New Debt Program is US$60 million (A$90.1 million), with US$13.1 million deducted for costs and US$9.9 million used to repay previous lenders[821]. - Adjusted debt increased by $50.1 million to $50.4 million in FY23, primarily due to the New Debt Program[835]. - The New Debt Program includes financial covenants requiring minimum cash available and EBITDA thresholds, with potential breaches forecasted for February 2024 and August 2024[882]. - Carbon Revolution entered into a New Debt Program with a term loan of USD 60 million (AUD 90.1 million) at an interest rate of 8.5%[928]. - Principal repayments for the new loan will commence in December 2024, with monthly repayments of USD 2 million[928]. - The company has incurred costs of USD 20.6 million related to the establishment of the term loan, which are being amortized over the loan term[935]. Operational Developments - The first phase of the Mega-line was commissioned and is producing customer wheels, with production rates steadily increasing[819]. - The company has thirteen active awarded programs with five global OEMs, with six currently in production and seven in development[824]. - The company aims to reduce cash burn by minimizing operating and capital expenditure while expanding production capacity[837]. - The Company plans to launch new programs, including wheels for JLR Range Rover Sport SV and Ford Mustang Dark Horse, while raising sufficient funds to support growth[852]. - The company anticipates strong demand for its wheels and expects production rates to rise as global automotive supply chain issues are resolved[829]. - The Company expects to reduce the direct cost per wheel from $2,658 in FY23 to approximately $1,500 in the long term due to the operational Mega-line expected in 2025[924]. - The Company is subject to various testing and validation procedures for its wheel products, developed in conjunction with customers[874]. Investment and Shareholder Information - The Company entered into OIC Documents with OIC Investors, resulting in initial gross proceeds of US$35 million (A$54.7 million) from the issuance of Preferred Shares and OIC Warrant[846]. - An additional US$35 million (A$54.7 million) is available in escrow, with up to US$40 million (A$62.5 million) in aggregate proceeds contingent on further conditions for future manufacturing facility development[846]. - The OIC Warrant allows OIC to purchase up to 543,918 Ordinary Shares at an exercise price of US$0.01 per share[846]. - The Preferred Shares carry a fixed dividend rate of 12% per annum, payable quarterly in cash or additional shares at the Company's discretion[876]. - The Company has allocated US$15.5 million (A$23.2 million) into reserve funds, with specific amounts scheduled for release based on conditions met[856]. - The Company has issued US$35 million (A$54.7 million) of Preferred Shares to OIC, with US$35 million (A$54.7 million) in gross proceeds received[892]. Market and Risk Factors - Carbon Revolution's exposure to foreign currency risk is primarily related to its USD-denominated term loan and sales from new wheel programs scheduled to commence production in H2 2024[633]. - The Group's ability to raise further capital is subject to consent from OIC, which may restrict the Company's business activities[898]. - Management is seeking an extension of time to complete a project under a government grant agreement due to delays in compliance with expenditure requirements[934]. - The company actively reviews its funding position to ensure adequate facilities are maintained for current and anticipated needs[639]. - The company has a compound annual growth rate of 14.8% for wheel volume[934].

Revenue Performance - Reported annual revenue of $35.61 million, a decrease of $0.18 million or 0.5% compared to FY 2024[7] - Year over Year decline in Telecommunications Products & Services revenue of $5.59 million or 17% compared to FY 2024[7] - Year over Year growth in SMS & MMS revenue of $5.52 million or 206% compared to FY 2024[7] Financial Position - At February 28, 2025, total assets were $48.82 million and total liabilities were $35.16 million[13] - Cash balance at February 28, 2025, was $1.13 million with a working capital surplus of $6.90 million[13] Profitability - Reported annual net loss of $5.11 million, an increase of $1.30 million or 34% compared to FY 2024[7] Expenses - Marketing costs increased by $136,206 or 97% due to the promotion of the newly launched DaGe App platform[9] - General and administrative expenses decreased by $137,710 or 2% during the year[9] Strategic Initiatives - Introduction of new platforms such as the DaGe Platform and C2 Platform contributed to revenues in FY 2025[9] - Company remains committed to growth strategy through platform development and market expansion efforts[9]

Chagee Announces First Quarter 2025 Unaudited Financial Results SHANGHAI, May 30, 2025 (GLOBE NEWSWIRE) -- Chagee Holdings Limited (NASDAQ: CHA) ("Chagee" or the "Company"), a leading premium tea drinks brand serving healthy and delicious freshly-made tea drinks, today announced its unaudited financial results for the first quarter ended March 31, 2025. First Quarter 2025 Operational Highlights First Quarter 2025 Financial Highlights Exhibit 99.1 First Quarter 2025 Financial Results Total net revenues incre ...

Revenue Performance - Canada cannabis revenue increased by 4% in Q4 FY2025 year-over-year, driven by a 13% growth in Canada medical cannabis[1] - Canada medical cannabis net revenue increased by 13% to $20 million in Q4 FY2025, while Canada adult-use cannabis net revenue declined by 3% to $20.4 million[17] - International markets cannabis net revenue decreased by 35% to $8 million in Q4 FY2025, primarily due to declines in Poland and Australia[12] - Canopy Growth Corporation reported a net revenue of CAD 65,031 thousand for the three months ended March 31, 2025, a decrease of 10.4% compared to CAD 72,788 thousand for the same period in 2024[52] - The Canada cannabis segment reported net revenue of CAD 40,377 thousand for the three months ended March 31, 2025, up from CAD 38,622 thousand in 2024, with an adjusted gross margin percentage of 11%[63] - For the year ended March 31, 2025, the Canada cannabis segment's net revenue was CAD 155,860 thousand, slightly down from CAD 159,165 thousand in 2024, but with an improved adjusted gross margin percentage of 25%[66] Financial Performance - Total debt was reduced by $293 million, or 49%, during FY2025, decreasing to $304 million as of March 31, 2025[1] - Adjusted EBITDA loss improved by 39% year-over-year to $9 million in Q4 FY2025, and by 60% to $24 million in FY2025[2] - Free cash flow outflow was $36 million in Q4 FY2025, a 60% increase in outflow compared to Q4 FY2024, while FY2025 outflow improved by 24% to $177 million[12] - Consolidated gross margin decreased by 500 basis points to 16% in Q4 FY2025, while adjusted gross margin decreased by 200 basis points to 19%[12] - The company experienced a net loss from continuing operations of CAD 604,138 thousand for the year ended March 31, 2025, compared to a net loss of CAD 483,682 thousand for the previous year, reflecting a 24.9% increase in losses[55] - The company reported a net loss from continuing operations of CAD 221,501 thousand for the three months ended March 31, 2025, compared to a loss of CAD 94,675 thousand in the same period of 2024, indicating a significant increase in losses[59] - Adjusted EBITDA for the three months ended March 31, 2025, was CAD (9,248) thousand, an improvement from CAD (15,091) thousand in the prior year[59] - Free cash flow for the three months ended March 31, 2025, was CAD (36,241) thousand, compared to CAD (22,709) thousand in the same period of 2024, reflecting increased cash usage[61] Asset and Liability Management - Total current assets decreased to CAD 294,574 thousand as of March 31, 2025, down from CAD 371,180 thousand as of March 31, 2024, representing a decline of 20.7%[48] - Canopy Growth's total liabilities decreased to CAD 430,488 thousand as of March 31, 2025, from CAD 799,823 thousand a year earlier, indicating a reduction of 46.1%[50] - The total assets of Canopy Growth Corporation decreased to CAD 917,701 thousand as of March 31, 2025, down from CAD 1,300,330 thousand as of March 31, 2024, a decline of 29.4%[48] - The company reported cash and cash equivalents of CAD 113,811 thousand as of March 31, 2025, a decrease of 33.2% from CAD 170,300 thousand at the end of the previous year[55] - Canopy Growth's inventory increased to CAD 96,373 thousand as of March 31, 2025, up from CAD 77,292 thousand a year earlier, reflecting a rise of 24.7%[48] Strategic Initiatives - Additional cost reduction initiatives are expected to deliver at least $20 million in annualized savings over the next 12-18 months[1] - The company aims to achieve positive adjusted EBITDA in the near term and positive free cash flow over time as it accelerates growth in global medical cannabis[2] - Canopy Growth is focused on expanding its presence in the U.S. cannabis market through Canopy USA, which includes ownership of Acreage and Wana, aiming to capitalize on growth opportunities[33] - The company anticipates growth in customer numbers and revenue, driven by new product offerings and market expansion strategies[43] - Canopy Growth is actively pursuing acquisitions, including the final tranche closing for Jetty, with an investment of up to $20 million from the Huneeus 2017 Irrevocable Trust[38] Operational Metrics - The company emphasizes the importance of Adjusted EBITDA as a key performance metric, which excludes various costs to provide a clearer picture of operational performance[27] - Free Cash Flow is highlighted as a critical measure for assessing liquidity, calculated as net cash from operating activities minus capital expenditures[28] - Adjusted Gross Margin and Adjusted Gross Margin Percentage are used to evaluate gross margin performance, excluding restructuring charges[29] Regulatory and Compliance - Canopy Growth is navigating regulatory uncertainties in the U.S. cannabis market, which may impact its business strategies and operations[36] - The company is focused on maintaining effective internal controls and ensuring compliance with financial reporting standards[41] - Future performance expectations are subject to various risks, including market conditions, competition, and regulatory changes[42] Cost Management - The company incurred acquisition, divestiture, and other costs of CAD 5,202 thousand for the three months ended March 31, 2025, down from CAD 13,062 thousand in the same period of 2024[59] - The company experienced a loss on asset impairment and restructuring of CAD 9,098 thousand for the three months ended March 31, 2025, compared to CAD 63,535 thousand in the same period of 2024[59]

Financial Performance - Canopy Growth reported net revenue of CAD 268.995 million for the year ended March 31, 2025, a decrease of 9% from CAD 297.146 million in 2024 [449]. - The gross margin percentage improved to 30% in fiscal 2025, up from 27% in fiscal 2024, reflecting strategic changes and cost savings initiatives [458]. - Net loss from continuing operations increased to CAD 604.138 million in fiscal 2025, compared to CAD 483.682 million in 2024, representing a 25% increase in losses [449]. - Canadian adult-use cannabis revenue decreased by 15% to CAD 78.828 million in fiscal 2025, primarily due to lower sales volumes and increased price competition [451][453]. - Canadian medical cannabis revenue increased by 16% to CAD 77.032 million in fiscal 2025, driven by a higher average order size and a larger product assortment [451][454]. - International markets cannabis revenue decreased by 4% to CAD 39.734 million in fiscal 2025, attributed to declines in the Australian market and U.S. CBD business [451][455]. - Revenue from Storz & Bickel increased by 4% to CAD 73.401 million in fiscal 2025, supported by strong sales growth in Germany and the UK [451][456]. - The divestiture of This Works on December 18, 2023, resulted in a complete revenue loss from this segment, which was CAD 21.256 million in fiscal 2024 [451][457]. - Cost of goods sold decreased by 12% to CAD 189.484 million in fiscal 2025, contributing to the improved gross margin [458]. - Canopy Growth's weighted average number of outstanding common shares increased to 107,553,729 in fiscal 2025, up from 74,787,521 in fiscal 2024 [449]. Operating Expenses - Total operating expenses decreased to $196.7 million in fiscal 2025, down 36% from $309.6 million in fiscal 2024 [465]. - General and administrative expenses were $65.1 million in fiscal 2025, a 28% decrease from $90.3 million in fiscal 2024 [467]. - Sales and marketing expenses dropped to $60.9 million in fiscal 2025, down 20% from $76.1 million in fiscal 2024 [468]. - The company incurred acquisition-related costs of $19.5 million in fiscal 2025, down from $34.8 million in fiscal 2024, reflecting ongoing restructuring efforts [469]. - Total restructuring, asset impairments, and related costs in fiscal 2025 amounted to $33.2 million, down from $65.0 million in fiscal 2024 [482][484]. Cash Flow and Liquidity - Cash used in operating activities for fiscal 2025 was $165.8 million, a decrease from $282.0 million in fiscal 2024, primarily due to reduced operating losses and lower cash interest payments [547]. - Cash used in investing activities totaled $47.8 million in fiscal 2025, with $10.8 million for property, plant, and equipment improvements and $95.3 million for strategic investments, including the acquisition of Acreage's debt [549]. - Cash provided by financing activities was $148.7 million in fiscal 2025, driven by $385.4 million from common share issuances under ATM Programs, offset by $289.0 million in long-term debt repayments [552]. - Free cash flow for fiscal 2025 was an outflow of $176.6 million, an improvement from an outflow of $231.9 million in fiscal 2024, reflecting decreased cash used in operating activities [557]. - The company reported a net decrease in cash and cash equivalents of $56.5 million for fiscal 2025, compared to a decrease of $506.7 million in fiscal 2024 [545]. Debt and Financing - Total debt outstanding as of March 31, 2025, was $304.1 million, down from $597.2 million as of March 31, 2024, representing a decrease of approximately 49% [559]. - The total principal amount owing as of March 31, 2025, was $315.5 million, a reduction from $622.0 million at March 31, 2024, indicating a decrease of about 49% [559]. - The company entered into a Credit Agreement providing for a Credit Facility in the aggregate principal amount of US$750.0 million on March 18, 2021 [560]. - The company made an Optional Prepayment resulting in an aggregate principal reduction of $143.9 million (US$100.0 million) for a cash payment of $140.3 million (US$97.5 million) on March 31, 2025 [571]. - The company repurchased additional outstanding principal amounts under the Credit Facility resulting in an aggregate principal reduction of $73.3 million (US$54.5 million) for a cash payment of $69.6 million (US$51.8 million) on August 11, 2023, and September 14, 2023 [564]. Impairments and Restructuring - The company recognized a goodwill impairment loss totaling $1.7 billion for the cannabis operations reporting unit in the first quarter of fiscal 2023 [603]. - The company recognized a non-cash impairment of divestiture-related assets and employee restructuring costs contributing to the total restructuring costs [482]. - Impairment charges in fiscal 2024 totaled $79.5 million, including $42.1 million in goodwill impairment losses related to the Storz & Bickel reporting unit [527]. - The company recognized fair value changes on Canopy USA related assets resulting in increased expenses of $237.3 million in fiscal 2025 [490]. Strategic Initiatives - The company completed the acquisition of Acreage, owning 100% of the issued and outstanding shares, with 5,888,291 common shares issued to former shareholders of Acreage [432]. - The company has received EU-GMP certification at its Kincardine facility, enabling the export of certified medical cannabis to European markets [415]. - The company maintains agreements to supply all Canadian provinces and territories with adult-use products through established retail distribution systems [419]. - The company has developed a compassionate pricing program offering eligible low-income patients a 20% discount on regular prices of medical cannabis [419]. - The company has established an at-the-market equity program allowing it to issue and sell up to US$250 million of Canopy Shares [429].

Financial Performance - First quarter 2025 net sales declined 7.5% to $277.7 million compared to $300.4 million in the first quarter of 2024[6] - First quarter 2025 net income was $9.3 million, or $0.34 per diluted share, down from $17.3 million, or $0.63 per diluted share in the first quarter of 2024[9] - Operating income fell to $11.965 million, a decrease of 46.8% from $22.507 million year-over-year[29] - Net income decreased to $9.343 million, down 46.0% from $17.286 million in the same quarter last year, resulting in a diluted net income per share of $0.34[29] - Gross profit declined to $95.777 million, representing a gross margin of 34.5%, compared to $106.800 million and a gross margin of 35.5% in the prior year[29] Sales and Revenue Outlook - The company expects net sales for Fiscal 2025 to range from $1.15 billion to $1.23 billion, representing a decline of 4% to an increase of 2% compared to Fiscal 2024[19] - Shoe Station banner net sales grew 4.9% while the family footwear industry experienced a decline[4] - Net sales decreased to $277.715 million for the thirteen weeks ended May 3, 2025, down 7.5% from $300.365 million for the same period last year[29] Expenses and Margins - The gross profit margin for the first quarter 2025 was 34.5%, down from 35.6% in the first quarter of 2024[7] - SG&A expenses as a percentage of net sales increased to 30.2% in the first quarter 2025 from 28.1% in the first quarter of 2024[8] Cash and Assets - The company had over 30% additional cash on hand compared to the first quarter of 2024, with no debt[5] - Cash and cash equivalents at the end of the period were $78.476 million, a decrease from $108.680 million at the beginning of the period[33] - Total assets grew to $1,140.158 million, compared to $1,124.133 million in the previous quarter[31] - Total liabilities increased to $486.577 million, up from $475.137 million in the previous quarter[31] - Cash flows from operating activities resulted in a net cash outflow of $9.637 million, compared to a net inflow of $17.059 million in the same period last year[33] Capital Expenditures and Store Strategy - Capital expenditures in the first quarter 2025 totaled $13.3 million, reflecting the rebanner of 24 stores and the opening of one new store[12] - The company plans for approximately 120 stores, or 28% of the store fleet, to operate as Shoe Station by the end of Fiscal 2025[16] - The rebanner strategy is projected to impact operating income by $20 to $25 million, resulting in an estimated $0.65 decline in Fiscal 2025 EPS[18] Dividends - Dividends declared per share increased to $0.150, up from $0.135 in the prior year[29]

Mergers and Acquisitions - The company completed a merger with Old iCore on August 25, 2023, resulting in Old iCore becoming a wholly-owned subsidiary[17] - The company sold the assets of its Managed IT Services on October 1, 2024, indicating a strategic shift in its business focus[18] - The company is actively evaluating opportunities for acquisitions or investments in complementary businesses and technologies[42] Product Offerings - The company offers a range of HIPAA-compliant SaaS products, including iCoreRx and iCoreVerify, aimed at improving workflow efficiency and patient safety[21][23] - iCorePay, a cloud-based FinTech solution, streamlines billing and payment processes, enhancing patient experience and revenue collection for healthcare providers[30] - The company markets a range of HIPAA-compliant SaaS offerings, including iCoreRx and iCoreVerify, aimed at improving workflow productivity in healthcare[21] Business Strategy - The company aims to expand into new horizontal markets, focusing on analytics, claims, coding, billing processing, and electronic prescribing[40] - The company plans to deepen existing customer relationships by providing additional value-added products and services[39] - The company has a strategy of continuous innovation based on customer feedback, aiming to improve products and services through development, acquisitions, and partnerships[38] Financial Information - The company has implemented a reverse stock split at a ratio of 1-for-20 effective December 23, 2024, to comply with Nasdaq Listing Rule requirements[14] - There was a significant accounts receivable concentration, with one customer representing 26% of total accounts receivable as of December 31, 2024, compared to 25% for a different customer in 2023[44] - As of December 31, 2024, the company had 72 employees, with 68 being full-time[47] Technology and Security - The company’s software solutions are designed to be secure, private, scalable, and reliable, with a comprehensive security infrastructure in place[33] - The company does not currently own any patents or trademarks, relying instead on trade secrets and contractual rights to protect its technology[45] User Experience and Adoption - The company emphasizes rapid deployment and lower total cost of ownership for its services, allowing customers to save on traditional enterprise software costs[35] - The company is committed to enhancing user adoption by designing intuitive products that require minimal training[36] - High levels of user adoption are facilitated by intuitive product design, enabling users to benefit with minimal training[37] Market Validation - The company has won over 100 major healthcare association endorsements across 33 states, indicating strong market validation[41] - The company has won over 100 major healthcare association endorsements in 33 states, indicating strong market presence[41]

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]

Financial Performance - Net income for the three-month period ended May 3, 2025, was $100.8 million, an increase from $78.5 million in the same period last year, driven by higher sales and increased gross margin rate [108]. - Adjusted Net Income rose by $15.8 million to $102.6 million compared to the prior year, primarily due to higher sales and improved gross margin rate [115]. - Adjusted EBIT increased by $16.9 million to $146.3 million for the three months ended May 3, 2025, compared to the same period in the prior year [121]. - Adjusted EBITDA rose by $26.7 million to $238.1 million for the three months ended May 3, 2025, driven by higher sales and increased gross margin rate [121]. - Net sales improved by approximately $142.8 million, or 6.1%, to $2,500.1 million during the first quarter of Fiscal 2025, primarily due to net sales from 94 new stores opened since the end of the first quarter of Fiscal 2024 [136]. - Comparable store sales were flat at 0% for the three months ended May 3, 2025, compared to a 2% increase for the same period in the prior year [126]. - Gross margin as a percentage of net sales increased to 43.8% during the three months ended May 3, 2025, compared to 43.5% for the same period in the prior year [128]. - Income tax expense was $32.0 million for the first quarter of Fiscal 2025, with an effective tax rate of 24.1%, down from 28.4% in the prior year [147]. Store Operations and Expansion - The company opened 14 new stores during the three-month period, bringing the total store count to 1,115 as of May 3, 2025 [95]. - The company plans to average about 100 net new stores per year, targeting a total of 500 net new stores over the five-year period from Fiscal 2024 through Fiscal 2028 [100]. - The company aims to operate 2,000 stores in the long term, identifying numerous market opportunities for expansion [100]. - The company opened 14 new stores and closed three stores during the three-month period ended May 3, 2025, bringing the total store count to 1,115, with plans to open approximately 100 net new stores in Fiscal 2025 [167]. Inventory and Cash Flow - Inventory increased to $1,315.3 million as of May 3, 2025, compared to $1,140.8 million at May 4, 2024, primarily due to an increase in reserve inventory and new store openings [130]. - Cash and cash equivalents decreased by $623.6 million during the three months ended May 3, 2025, compared to a decrease of $183.0 million during the same period in the prior year [133]. - Cash used during the three-month period ended May 3, 2025, was $623.6 million, compared to $183.0 million for the same period in 2024, indicating a significant increase in cash outflow [154]. - Net cash used in operating activities was $28.9 million for the three-month period ended May 3, 2025, down from a net cash provided of $49.4 million in the same period in 2024, primarily due to changes in working capital [155]. - Net cash used in investing activities increased to $412.7 million for the three-month period ended May 3, 2025, compared to $165.5 million in the same period in 2024, driven by higher capital expenditures related to supply chain costs and store openings [156]. - Net cash used in financing activities was $182.0 million during the three-month period ended May 3, 2025, up from $66.9 million in the same period in 2024, mainly due to the settlement of the 2025 Convertible Notes and increased treasury stock repurchases [157]. - Capital expenditures for the three-month period ended May 3, 2025, amounted to $412.2 million, with an estimated total of approximately $950 million planned for Fiscal 2025 [159][160]. Economic and Market Conditions - General economic conditions, including inflation and consumer spending habits, remain a challenge, particularly affecting low-income shoppers, the company's core customer base [99]. - The company anticipates increased competition in the retail sector, necessitating continued differentiation from competitors through brand-name merchandise at discounted prices [104]. - The company acknowledges risks related to general economic conditions, including inflation and political situations, which may impact consumer confidence and spending [186]. - The company highlights the importance of adapting to changing consumer preferences and demand as a key factor for future growth [186]. Operational Challenges and Strategies - The company is focusing on driving comparable store sales growth by effectively chasing sales trends and operating with leaner inventories [96]. - The company expects to carry less inventory compared to historical levels, which should lead to faster inventory turns and lower markdowns [96]. - The company is investing in merchandising capabilities, including training, improved tools, and incremental headcount to strengthen vendor relationships and better forecast sales trends [97]. - The company is focused on optimizing existing stores and maintaining favorable lease terms to enhance operational efficiency [186]. - The company faces challenges related to labor costs and the ability to attract and retain quality employees, which are critical for sustaining growth [186]. - The company is subject to risks from disruptions in its distribution network and the need to protect its information systems against cyber-related attacks [186]. - The company notes that its advertising and marketing programs are essential for generating customer traffic and brand awareness [186]. Debt and Financial Commitments - As of May 3, 2025, total debt obligations included $1,236.1 million under the Term Loan Facility and $297.1 million of 2027 Convertible Notes [168]. - The company has $1,980.1 million in purchase commitments related to goods not received as of May 3, 2025, and $4,703.8 million in future minimum lease payments under operating leases [182]. - The 2027 Convertible Notes bear interest at a rate of 1.25% per year and may be converted into common stock, with an initial conversion price of approximately $205.93 per share [178][179]. - The company has authorized a share repurchase program of up to $1 billion, with $157.9 million remaining under the current authorization as of May 3, 2025 [161][162]. Forward-Looking Statements and Risks - The company emphasizes that past financial performance should not be relied upon as an indication of future performance due to various unpredictable factors [187]. - The company will not publicly update or revise forward-looking statements unless required by law, indicating a cautious approach to future projections [187]. - The company has no material changes in its quantitative and qualitative disclosures about market risk from those included in the Fiscal 2024 10-K [189]. - The company is committed to complying with increasingly rigorous privacy and data security regulations, which are vital for maintaining customer trust [186].

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].