LOOP INDUSTRIES, INC. FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Press release · 10/15 22:50
LOOP INDUSTRIES, INC. FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

LOOP INDUSTRIES, INC. FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Loop Industries, Inc. filed its quarterly report for the three and six months ended August 31, 2024. The company reported a net loss of $12.4 million for the three months ended August 31, 2024, compared to a net loss of $10.3 million for the same period in 2023. For the six months ended August 31, 2024, the company reported a net loss of $24.1 million, compared to a net loss of $20.6 million for the same period in 2023. As of August 31, 2024, the company had cash and cash equivalents of $14.4 million, compared to $23.4 million as of February 29, 2024. The company’s total assets were $54.4 million as of August 31, 2024, compared to $63.4 million as of February 29, 2024. The company’s total liabilities were $34.4 million as of August 31, 2024, compared to $33.4 million as of February 29, 2024.

Summary and Analysis of Key Points

Overview of Financial Performance:

  • Loop Industries, Inc. is a technology company focused on developing and commercializing its patented Infinite Loop™ depolymerization technology to recycle PET plastic and polyester fiber waste.
  • The company has reported financial results for the three and six-month periods ended August 31, 2024.
  • During the second quarter of fiscal 2024, Loop generated $23,000 in revenue from initial deliveries of Loop™ PET resin to customers, down from $54,000 in the prior year period.
  • The company incurred a net loss of $4.8 million in Q2 2024, compared to a net loss of $4.7 million in Q2 2023.
  • For the first six months of fiscal 2024, Loop reported a net loss of $10.0 million, an improvement from a net loss of $11.8 million in the prior year period.

Revenue and Profit Trends:

  • Loop’s revenues have been limited as the company remains in the pre-commercialization stage, with no material revenues to date.
  • The company’s net losses have decreased year-over-year, driven by lower research and development expenses as it has completed upgrades to its Terrebonne pilot facility.
  • However, the company continues to incur significant operating expenses as it develops its technology and pursues commercialization.

Strengths and Weaknesses: Strengths:

  • Innovative depolymerization technology that can recycle a wider range of PET plastic and polyester waste compared to mechanical recycling.
  • Partnerships with major companies like Ester Industries and SK Geo Centric to commercialize the Infinite Loop™ technology globally.
  • Expansion into production of recycled DMT and MEG monomers, addressing supply shortages and demand for low-carbon alternatives.

Weaknesses:

  • Lack of meaningful revenue to date as the company remains in the pre-commercial stage.
  • Continued net losses and reliance on external financing to fund operations and growth.
  • Uncertainty around timing and execution of planned commercial facilities.

Outlook:

  • Loop is pursuing a global expansion strategy for its Infinite Loop™ technology through a mix of owned facilities, joint ventures, and licensing agreements.
  • The company has secured a €35 million investment from Reed Management to fund global commercialization, and a joint venture with Ester Industries to build a facility in India.
  • Planned facilities in South Korea and Europe with partners SKGC and Suez are in development, though timing is under review.
  • Loop’s ability to execute on its strategic plans is dependent on securing additional financing through debt, equity, joint ventures, and/or government incentives.
  • The company faces material uncertainties around its ability to continue as a going concern, with its current liquidity only expected to be sufficient until November 2024.

Overall, Loop Industries is making progress in developing and commercializing its innovative recycling technology, but continues to face challenges in achieving profitability and securing the necessary financing to fund its growth plans. The company’s success will depend on its ability to execute on its partnerships and commercial projects while managing its liquidity and operating expenses.