Core Viewpoint - CARBIOS and Wankai New Materials have signed a collaboration agreement to implement CARBIOS's enzymatic PET recycling technology in Asia, marking a significant strategic advancement for both companies in establishing a circular PET industry in the region [1][5][6]. Group 1: Agreement Details - The agreement includes the construction and operation of multiple PET biorecycling plants in Asia, with a total capacity of up to 1 million tons per year [2][8]. - The first step involves establishing a joint venture to build a PET biorecycling plant in China, with an annual processing capacity of 50,000 tons of PET waste [3][8]. - Wankai will guarantee the financing of the joint venture and become the main shareholder, with construction expected to begin in Q1 2026 [3][4]. Group 2: Investment and Licensing - Wankai will invest €5 million in CARBIOS to strengthen the strategic partnership [4]. - CARBIOS will grant an exclusive license for its technology to the joint venture, marking the first licensing of its technology and confirming the viability of its business model [5][6]. Group 3: Market Context - China, as the world's leading PET producer, is a crucial market for CARBIOS, and this agreement is a significant step towards a sustainable PET industry in Asia [5][6]. - The partnership aims to contribute to a circular and low-carbon PET industry, aligning with global sustainability goals [6].

Financial Data and Key Metrics Changes - Cash operating expenses for Q1 fiscal 2026 were $2,600,000, a reduction of $2,200,000 or 46% compared to the same quarter last year [14] - Cash used in operating activities for the quarter was $3,100,000, including working capital outflows of $800,000 [14] - The company ended the quarter with available liquidity of $12,300,000 [14] Business Line Data and Key Metrics Changes - The company is advancing discussions with leading global apparel brands and consumer packaged goods (CPG) brands for textile-to-textile recycling solutions [5][6] - European beverage brands are seeking high-quality recycled PET due to declining quality from mechanical recycling [7][8] - The confirmed CapEx for the Indian facility is $176,000,000, which includes a polymerization unit and all financing costs [9] Market Data and Key Metrics Changes - The Indian textile industry provides a plentiful supply of waste polyester fiber, which is advantageous for the company's operations [6] - The low-cost structure in India allows the company to offer high-quality PET at competitive prices [8][9] Company Strategy and Development Direction - The company is focused on the development of Infinite Loop manufacturing facilities in India and Europe, leveraging local joint venture partners [4][5] - Modularization of projects is expected to significantly reduce CapEx by 50%, enhancing the company's competitive position [12][13] - The long-term vision includes driving significant shareholder value through the rollout of manufacturing facilities and generating multiple revenue streams [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in securing customer contracts and financing for the Indian facility, with a focus on long-term agreements [21][22] - The company is optimistic about the future, citing strong relationships with customers and the potential for additional facilities in India [56][57] Other Important Information - The company is working with KPMG to syndicate debt financing for the Indian facility [30] - The total equity contribution required for the Indian facility is $25,000,000, with a funding gap of approximately $15,000,000 [50][52] Q&A Session Summary Question: Can you provide details on your offtake agreements? - The company is advancing discussions with customers for long-term contracts, which may take longer to finalize due to internal processes [21][22] Question: What is the capital intensity of Loop's facilities? - The gross CapEx per pound for Loop's technology is 61¢, excluding certain costs [36][38] Question: What are the next steps for the project? - The company is focused on securing customer contracts and finalizing land selection in Gujarat [31][32] Question: What is the timeline for the facility's construction? - The facility is expected to be operational by the end of 2027, with an 18-month construction period [43][44] Question: How does the company plan to finance the project? - The company is evaluating several opportunities to cover the $15,000,000 funding gap needed for the project [52] Question: Can you update on the licensing pipeline? - The company is optimistic about potential licensing opportunities, especially with reduced CapEx for future projects [54][56]