Loop Industries Reports Revenue Decline, Net Loss, and Strategic Developments in Latest Quarter

Loop Industries, Inc. reported its financial results for the three and six months ended August 31, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended August 31, 2024, Loop Industries generated revenue of $23,000, a decrease from $54,000 in the same period of 2023. For the six-month period, revenue fell to $29,000 from $81,000 year-over-year. The company's total expenses for the three months were $4,669,000, down from $5,017,000 in 2023, while for the six months, expenses decreased to $9,954,000 from $12,104,000. Despite the reduction in expenses, Loop reported a net loss of $(4,839,000) for the three months, slightly higher than the $(4,750,000) loss in 2023. However, the six-month net loss improved to $(10,028,000) from $(11,751,000) in the prior year.

Loop's total current assets decreased significantly to $2,360,000 as of August 31, 2024, from $7,988,000 as of February 29, 2024. Total assets also fell to $15,003,000 from $20,553,000 during the same period. Current liabilities increased to $4,870,000, leading to a current liabilities exceeding current assets by $2,510,000. The accumulated deficit worsened to $(186,998,000) from $(176,970,000) as of February 29, 2024, and total stockholders' equity decreased to $4,834,000 from $14,142,000.

Strategically, Loop has been active in forming partnerships and joint ventures. In May 2024, the company established a 50/50 joint venture with Ester Industries Ltd. to build an Infinite Loop™ manufacturing facility in India, aimed at producing lower carbon footprint recycled materials. Additionally, Loop entered into a binding agreement with Reed Management SAS for an investment of €35 million to support the global commercialization of its technology. This investment includes a €10 million Convertible Preferred Security and a €25 million loan, contingent upon certain conditions being met.

As of August 31, 2024, Loop had 50 employees and reported a cash position of $1,395,000, with an undrawn senior loan facility of $1,008,000. The company anticipates that its liquidity will be sufficient to cover expected cash outflows until the end of November 2024. However, material uncertainties raise substantial doubt about its ability to continue as a going concern, emphasizing the need for successful financing efforts to support ongoing operations and strategic initiatives.