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

Press release · 10/26 04:33
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 waste compared to mechanical recycling
  • Partnerships with major companies like Ester, SKGC, and Suez to commercialize the Infinite Loop™ technology globally
  • Expansion into specialty chemicals like rDMT and rMEG, addressing supply shortages and demand for low-carbon alternatives

Weaknesses:

  • Lack of meaningful revenue to date as the company remains in the pre-commercialization 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 an aggressive global expansion strategy, with plans to build commercial-scale Infinite Loop™ facilities in partnership with industrial companies.
  • The company’s recent partnership with Ester in India and ongoing discussions with SKGC and Suez in Asia and Europe represent significant growth opportunities.
  • However, Loop’s ability to execute on its plans is dependent on securing the necessary financing, which remains a key risk and uncertainty.
  • Overall, Loop appears to be making progress in developing and commercializing its innovative recycling technology, but significant challenges and risks remain as it transitions from the R&D stage to large-scale manufacturing.