Loop Industries Reports Revenue Decline and Increased Net Losses for Three and Nine Months Ended November 30, 2024

Loop Industries, Inc. reported its financial results for the three and nine months ended November 30, 2024, revealing a significant decline in revenue and an increase in net losses compared to the previous fiscal period. The company generated $52,000 in revenue during the third quarter, up from $26,000 in the same period last year, but total revenue for the nine-month period fell to $81,000 from $108,000 in 2023. The net loss for the third quarter was $11.9 million, compared to a loss of $4.2 million in the same quarter of the previous year. For the nine months, the net loss increased to $21.9 million from $16 million in 2023.

The financial statements indicate a substantial increase in total expenses, which rose to $12.1 million for the third quarter, compared to $4.4 million in the same period last year. This increase was primarily driven by an impairment charge of $8.5 million related to machinery and equipment, attributed to the termination of a joint venture with SK Geo Centric Co. Ltd. The company’s accumulated deficit also widened to $198.9 million as of November 30, 2024, from $176.9 million at the end of the previous fiscal year.

Operationally, Loop Industries has faced challenges, with total current assets decreasing to $994,000 from $7.99 million at the end of February 2024. Current liabilities surged to $8.08 million, resulting in a working capital deficit of $7.08 million. The company’s cash and cash equivalents fell to $323,000, down from $6.96 million, raising concerns about liquidity. As of November 30, 2024, Loop Industries had a total of 47.62 million shares outstanding, a slight increase from 47.53 million shares in the previous year.

In terms of strategic developments, Loop Industries is in the pre-commercialization stage of its technology, which focuses on recycling PET plastic. The company has been actively seeking financing to support its operations and future growth plans. On December 23, 2024, Loop received $20.79 million from Reed Management SAS through the issuance of Series B Convertible Preferred Stock and a technology licensing agreement, which is expected to bolster its liquidity and operational capabilities. However, the company continues to face uncertainty regarding its ability to secure additional funding necessary for its strategic initiatives.

Looking ahead, Loop Industries management has expressed cautious optimism regarding its liquidity position, bolstered by the recent capital injection. However, the company acknowledges the need for further financing to advance its commercialization plans and construct manufacturing facilities. The ongoing assessment of market conditions and the ability to attract additional funding will be critical for Loop Industries as it navigates its path forward in the competitive recycling technology sector.