Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Loop Industries Reports First Quarter Fiscal 2025 Results and Provides Update on Commercialization Plans By: ACCESSWIRE July 15, 2024 at 13:25 PM EDT Loop Management to hold update call at 8:30 am ET on July 16, 2024 MONTREAL, QC / ACCESSWIRE / July 15, 2024 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company," "Loop," "we," "us," or "our"), a clean technology company whose mission is to accelerate a circular plastics economy by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber, today provided an update on its activities and reported its consolidated financial results for the first quarter for fiscal year 2025. Commercialization Update Loop and its joint venture partner, Ester Industries Ltd. ("Ester"), continue to make significant progress towards the planned Infinite Loop™ manufacturing facility in India. The joint venture has identified an abundance of low-cost polyester fiber waste from the textile industry in India, which we believe will enable Loop to sell polyester to its customers in need of a solution for textile-to-textile recycling. We have begun the process of securing offtake agreements with our global customers for the Infinite Loop™ India facility. The joint venture has retained a leading engineering firm to secure the optimal site for the facility, in proximity to the polyester fiber waste and the availability of clean renewable energy. The Company continues to be confident with the progress being made towards fulfilling the closing conditions in the agreement with Reed Management SAS ("Reed") previously announced on May 30th, 2024, and continues to expect this financing transaction to close by the end of the second quarter of the current fiscal year. Due to the Company's current liquidity position, Loop is reviewing contingency plans for bridge financing in the event that the closing extends beyond the end of the second quarter. Financial Results and Expense Breakdown The Company's financial results for the quarter ended May 31, 2024 include $5.2 million of total expenses, which include the significant legal expenses incurred to execute the final agreements with Ester and Reed, and project costs related to the deployment of Loop's technology. Excluding these items, and non-cash expenses, the remaining expenses amount to $3.2 million for the current quarter. The Company projects that the prospective run rate for cash expenses will be approximately $1 million per month for the balance of fiscal 2025, excluding project costs. CEO Comment Daniel Solomita, Founder and CEO of Loop, commented on the recent updates, saying: "We continue to be highly positive about our ongoing communications with Reed management and our shared vision for the future of Loop. We look forward to consummating the Reed financing, along with the parallel government financing, and breaking ground on the India project at the end of the fiscal year. The planned Infinite Loop™ India facility combines an experienced like-minded chemical manufacturing partner with low capital investment and low-cost manufacturing, with a plentiful supply of waste plastics which today cannot be recycled and is in close proximity to our customer's supply chain. The partnership with Ester reflects a strategic focus going forward to concentrate capital investments in global low-cost manufacturing environments, and the Infinite Loop™ India facility is expected to provide very attractive economic returns. As recycling is eventually needed in all countries to tackle the ongoing plastic waste crisis, Loop intends to license its technology to partners in higher cost manufacturing countries" Corporate Update Call Senior Management of Loop will host a corporate update call, followed by a question-and-answer session, which can be accessed via the dial-in numbers below. Slides supporting Senior Management's remarks will be available via the Investors section of Loop's website at http://loopindustries.com/en/investors/overview. Date: Tuesday, July 16, 2024Time: 8:30 am Eastern Time Participant joining details (by Telephone): Joining by Telephone:United States (Local): +1 404 975 4839 United States (Toll-Free): +1 833 470 1428 Access Code: 978353 OR Registration Link: https://www.netroadshow.com/events/login?show=96a88ec2&confId=68199 - Avoid wait time - Bypass speaking with an operator to join the call - Receive a Calendar Invitation with call access details including your unique PIN Results of Operations The following table summarizes our operating results for the three-month periods ended May 31, 2024 and 2023, in thousands of U.S. Dollars. Three months ended May 31, 2024 2023 Change favorable / (unfavorable) Revenue from contracts with customers $ 6 $ 27 $ (21 ) Expenses Research and development Machinery and equipment expenditures 3 1,236 1,233 External engineering 628 1,155 527 Employee compensation 1,015 1,286 271 Stock-based compensation 129 160 31 Plant and laboratory operating expenses 270 469 199 Other 192 184 (8 ) Total research and development 2,237 4,490 2,253 General and administrative Professional fees 1,255 619 (636 ) Employee compensation 635 637 2 Stock-based compensation 241 196 (45 ) Insurance 492 703 211 Other 288 310 22 Total general and administrative 2,911 2,465 (446 ) Depreciation and amortization 137 133 (4 ) Interest and other financial expenses 60 54 (6 ) Interest income (126 ) (99 ) 27 Foreign exchange gain (24 ) (15 ) 9 Total expenses 5,195 7,028 1,833 Net loss $ (5,189 ) $ (7,001 ) $ 1,812 First Quarter Ended May 31, 2024 Revenues Revenues for the three-month period ended May 31, 2024 decreased $21 to $6, as compared to $27 for the same period in 2023. The revenues resulted from the delivery of initial volumes to customers of Loop™ PET resin produced using monomers manufactured at the Terrebonne Facility. Research and Development Research and development expense for the three-month period ended May 31, 2024 decreased $2,253 to $2,237, as compared to $4,490 for the same period in 2023. The decrease was primarily attributable to a $1,233 decrease in purchases of machinery and equipment used at the Terrebonne Facility, a $527 decrease in external engineering costs for design work for our Infinite Loop™ manufacturing process, a $271 decrease in employee compensation expenses, and a $199 decrease in plant and laboratory expenses at our Terrebonne Facility. General and administrative expenses General and administrative expenses for the three-month period ended May 31, 2024 increased $446 to $2,911, as compared to $2,465 for the same period in 2023. The increase was primarily attributable to a $636 increase in professional fees which is mainly attributable to legal costs related to our partnerships with Reed and Ester. This increase was partially offset by a $211 decrease in insurance costs. Net Loss The net loss for the three-month period ended May 31, 2024 decreased $1,812 to $5,189, as compared to $7,001 for the same period in 2023. The decrease was primarily due to the decrease of $2,253 in research and development expenses and partially offset by increased general and administrative expenses of $446. Loop Industries, Inc.Condensed Consolidated Statements of Operations and Comprehensive Loss(Unaudited) (in thousands of U.S. dollars, except per share data) Three Months Ended May 31, 2024 May 31, 2023 Revenue from contracts with customers $ 6 $ 27 Expenses : Research and development 2,237 4,490 General and administrative 2,911 2,465 Depreciation and amortization 137 133 Total expenses 5,285 7,088 Other (income) loss : Interest and other financial expenses 60 54 Interest income (126 ) (99 ) Foreign exchange gain (24 ) (15 ) Total other income (90 ) (60 ) Net loss (5,189 ) (7,001 ) Other comprehensive (loss) income - Foreign currency translation adjustment (55 ) 20 Comprehensive loss $ (5,244 ) $ (6,981 ) Net loss per share Basic and diluted $ (0.11 ) $ (0.15 ) Weighted average common shares outstanding Basic and diluted 47,535,413 47,516,104 Loop Industries, Inc.Condensed Consolidated Balance Sheets(Unaudited) (in thousands of U.S. dollars, except per share data) As at May 31, 2024 February 29, 2024 Assets Current assets Cash and cash equivalents $ 5,291 $ 6,958 Sales tax, tax credits and other receivables 242 351 Inventories 99 102 Prepaid expenses and other deposits 525 577 Total current assets 6,157 7,988 Investment in joint venture 381 381 Property, plant and equipment, net 10,533 10,636 Intangible assets, net 1,671 1,548 Total assets $ 18,742 $ 20,553 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ 2,891 $ 2,321 Current portion of long-term debt 244 100 Total current liabilities 3,135 2,421 Due to customer 784 770 Long-term debt 5,555 3,220 Total liabilities 9,474 6,411 Stockholders' Equity Series A Preferred stock - - Common stock 5 5 Additional paid-in capital 172,162 171,792 Additional paid-in capital - Warrants 20,385 20,385 Accumulated deficit (182,159 ) (176,970 ) Accumulated other comprehensive loss (1,125 ) (1,070 ) Total stockholders' equity 9,268 14,142 Total liabilities and stockholders' equity $ 18,742 $ 20,553 Loop Industries, Inc.Condensed Consolidated Statements of Cash Flows(Unaudited) (in thousands of U.S. dollars) Three Months Ended May 31, 2024 2023 Cash Flows from Operating Activities Net loss $ (5,189 ) $ (7,001 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 137 133 Stock-based compensation expense 370 355 Accretion expense 28 17 Changes in operating assets and liabilities: Sales tax and tax credits receivable 108 (83 ) Inventories 3 (144 ) Prepaid expenses 51 (90 ) Accounts payable and accrued liabilities 577 1,321 Customer deposits - (12 ) Net cash used in operating activities (3,915 ) (5,504 ) Cash Flows from Investing Activities Deposits on machinery and equipment - (2,023 ) Additions to intangible assets (176 ) (99 ) Net cash used in investing activities (176 ) (2,122 ) Cash Flows from Financing Activities Borrowings under credit facility 2,517 - Repayment of long-term debt (25 ) (16 ) Net cash (used) provided by financing activities 2,492 (16 ) Effect of exchange rate changes (68 ) 21 Net decrease in cash (1,667 ) (7,621 ) Cash, cash equivalents and restricted cash, beginning of period 6,958 30,591 Cash, cash equivalents and restricted cash, end of period $ 5,291 $ 22,970 Supplemental Disclosure of Cash Flow Information: Income tax paid $ - $ - Interest paid $ 42 $ 21 Interest received $ 195 $ 99 About Loop Industries Loop Industries is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and away from our dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber, including plastic bottles and packaging, carpets and textiles of any color, transparency or condition and even ocean plastics that have been degraded by the sun and salt, to its base building blocks (monomers). The monomers are filtered, purified and polymerized to create virgin-quality Loop™ branded PET resin suitable for use in food-grade packaging and polyester fiber, thus enabling our customers to meet their sustainability objectives. Loop™ PET plastic and polyester fiber can be recycled infinitely without degradation of quality, successfully closing the plastic loop. Loop Industries is contributing to the global movement towards a circular economy by reducing plastic waste and recovering waste plastic for a sustainable future. Common shares of the Company are listed on the NASDAQ Global Market under the symbol "LOOP." For more information, please visit www.loopindustries.com. Follow Loop on Twitter: @loopindustries, Instagram: loopindustries, Facebook: Loop Industries and LinkedIn: Loop Industries Forward-Looking Statements This news release contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "should," "could," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or "continue," the negative of such terms or similar words. These forward-looking statements include, without limitation, statements about Loop's market opportunity, its strategies, ability to improve and expand its capabilities, competition, expected activities and expenditures as Loop pursues its business plan, the adequacy of its available cash resources, regulatory compliance, plans for future growth and future operations, the size of Loop's addressable market, market trends, and the effectiveness of Loop's internal control over financial reporting. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond Loop's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with among other things: (i) commercialization of our technology and products, (ii) our status of relationship with partners, (iii) development and protection of our intellectual property and products, (iv) industry competition, (v) our need for and ability to obtain additional funding relative to our current and future financial commitments, (vi) engineering, contracting, and building our manufacturing facilities, (vii) our ability to scale, manufacture, and sell our products in order to generate revenues, (viii) our proposed business model and our ability to execute thereon, (ix) the ability to obtain the necessary approvals or satisfy any closing conditions in respect of any of our proposed partnerships, (x) our joint venture projects and our ability to recover certain expenditures in connection therewith, (xi) adverse effects on the Company's business and operations as a result of increased regulatory, media, or financial reporting scrutiny, practices, rumors, or otherwise, (xii) disease epidemics and other health-related concerns and crises, which could result in reduced access to capital markets, supply chain disruptions and scrutiny, embargoing of goods produced in affected areas, government-imposed mandatory business closures and any resulting furloughs of our employees, government employment subsidy programs, travel restrictions or the like to prevent the spread of disease, or market or other changes that could result in non-cash impairments of our intangible assets, and property, plant and equipment, (xiii) the effect of the continuing worldwide macroeconomic uncertainty and its impacts, including inflation, market volatility and fluctuations in foreign currency exchange and interest rates, (xiv) the outcome of any U.S. Securities and Exchange Commission ("SEC") investigations or class action litigation filed against us, (xv) our ability to hire and/or retain qualified employees and consultants, (xvi) other events or circumstances over which we have little or no control, and (xvii) other factors discussed in Loop's Annual Report on Form 10-K for the fiscal year ended February 29, 2024 filed with the SEC and in Loop's subsequent filings with the SEC. More detailed information about Loop and the risk factors that may affect the realization of forward-looking statements is set forth in Loop's filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. Loop assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise. For More Information:Investor Relations:Kevin C. O'Dowd, Investor RelationsLoop Industries, Inc.+1 617-755-4602kodowd@loopindustries.com Media Inquiries:Andrea Kostiuk, VP Marketing & CommunicationsLoop Industries, Inc.+1 (450) 951-8555akostiuk@loopindustries.com SOURCE: Loop Industries, Inc. View the original press release on accesswire.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Loop Industries Reports First Quarter Fiscal 2025 Results and Provides Update on Commercialization Plans By: ACCESSWIRE July 15, 2024 at 13:25 PM EDT Loop Management to hold update call at 8:30 am ET on July 16, 2024 MONTREAL, QC / ACCESSWIRE / July 15, 2024 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company," "Loop," "we," "us," or "our"), a clean technology company whose mission is to accelerate a circular plastics economy by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber, today provided an update on its activities and reported its consolidated financial results for the first quarter for fiscal year 2025. Commercialization Update Loop and its joint venture partner, Ester Industries Ltd. ("Ester"), continue to make significant progress towards the planned Infinite Loop™ manufacturing facility in India. The joint venture has identified an abundance of low-cost polyester fiber waste from the textile industry in India, which we believe will enable Loop to sell polyester to its customers in need of a solution for textile-to-textile recycling. We have begun the process of securing offtake agreements with our global customers for the Infinite Loop™ India facility. The joint venture has retained a leading engineering firm to secure the optimal site for the facility, in proximity to the polyester fiber waste and the availability of clean renewable energy. The Company continues to be confident with the progress being made towards fulfilling the closing conditions in the agreement with Reed Management SAS ("Reed") previously announced on May 30th, 2024, and continues to expect this financing transaction to close by the end of the second quarter of the current fiscal year. Due to the Company's current liquidity position, Loop is reviewing contingency plans for bridge financing in the event that the closing extends beyond the end of the second quarter. Financial Results and Expense Breakdown The Company's financial results for the quarter ended May 31, 2024 include $5.2 million of total expenses, which include the significant legal expenses incurred to execute the final agreements with Ester and Reed, and project costs related to the deployment of Loop's technology. Excluding these items, and non-cash expenses, the remaining expenses amount to $3.2 million for the current quarter. The Company projects that the prospective run rate for cash expenses will be approximately $1 million per month for the balance of fiscal 2025, excluding project costs. CEO Comment Daniel Solomita, Founder and CEO of Loop, commented on the recent updates, saying: "We continue to be highly positive about our ongoing communications with Reed management and our shared vision for the future of Loop. We look forward to consummating the Reed financing, along with the parallel government financing, and breaking ground on the India project at the end of the fiscal year. The planned Infinite Loop™ India facility combines an experienced like-minded chemical manufacturing partner with low capital investment and low-cost manufacturing, with a plentiful supply of waste plastics which today cannot be recycled and is in close proximity to our customer's supply chain. The partnership with Ester reflects a strategic focus going forward to concentrate capital investments in global low-cost manufacturing environments, and the Infinite Loop™ India facility is expected to provide very attractive economic returns. As recycling is eventually needed in all countries to tackle the ongoing plastic waste crisis, Loop intends to license its technology to partners in higher cost manufacturing countries" Corporate Update Call Senior Management of Loop will host a corporate update call, followed by a question-and-answer session, which can be accessed via the dial-in numbers below. Slides supporting Senior Management's remarks will be available via the Investors section of Loop's website at http://loopindustries.com/en/investors/overview. Date: Tuesday, July 16, 2024Time: 8:30 am Eastern Time Participant joining details (by Telephone): Joining by Telephone:United States (Local): +1 404 975 4839 United States (Toll-Free): +1 833 470 1428 Access Code: 978353 OR Registration Link: https://www.netroadshow.com/events/login?show=96a88ec2&confId=68199 - Avoid wait time - Bypass speaking with an operator to join the call - Receive a Calendar Invitation with call access details including your unique PIN Results of Operations The following table summarizes our operating results for the three-month periods ended May 31, 2024 and 2023, in thousands of U.S. Dollars. Three months ended May 31, 2024 2023 Change favorable / (unfavorable) Revenue from contracts with customers $ 6 $ 27 $ (21 ) Expenses Research and development Machinery and equipment expenditures 3 1,236 1,233 External engineering 628 1,155 527 Employee compensation 1,015 1,286 271 Stock-based compensation 129 160 31 Plant and laboratory operating expenses 270 469 199 Other 192 184 (8 ) Total research and development 2,237 4,490 2,253 General and administrative Professional fees 1,255 619 (636 ) Employee compensation 635 637 2 Stock-based compensation 241 196 (45 ) Insurance 492 703 211 Other 288 310 22 Total general and administrative 2,911 2,465 (446 ) Depreciation and amortization 137 133 (4 ) Interest and other financial expenses 60 54 (6 ) Interest income (126 ) (99 ) 27 Foreign exchange gain (24 ) (15 ) 9 Total expenses 5,195 7,028 1,833 Net loss $ (5,189 ) $ (7,001 ) $ 1,812 First Quarter Ended May 31, 2024 Revenues Revenues for the three-month period ended May 31, 2024 decreased $21 to $6, as compared to $27 for the same period in 2023. The revenues resulted from the delivery of initial volumes to customers of Loop™ PET resin produced using monomers manufactured at the Terrebonne Facility. Research and Development Research and development expense for the three-month period ended May 31, 2024 decreased $2,253 to $2,237, as compared to $4,490 for the same period in 2023. The decrease was primarily attributable to a $1,233 decrease in purchases of machinery and equipment used at the Terrebonne Facility, a $527 decrease in external engineering costs for design work for our Infinite Loop™ manufacturing process, a $271 decrease in employee compensation expenses, and a $199 decrease in plant and laboratory expenses at our Terrebonne Facility. General and administrative expenses General and administrative expenses for the three-month period ended May 31, 2024 increased $446 to $2,911, as compared to $2,465 for the same period in 2023. The increase was primarily attributable to a $636 increase in professional fees which is mainly attributable to legal costs related to our partnerships with Reed and Ester. This increase was partially offset by a $211 decrease in insurance costs. Net Loss The net loss for the three-month period ended May 31, 2024 decreased $1,812 to $5,189, as compared to $7,001 for the same period in 2023. The decrease was primarily due to the decrease of $2,253 in research and development expenses and partially offset by increased general and administrative expenses of $446. Loop Industries, Inc.Condensed Consolidated Statements of Operations and Comprehensive Loss(Unaudited) (in thousands of U.S. dollars, except per share data) Three Months Ended May 31, 2024 May 31, 2023 Revenue from contracts with customers $ 6 $ 27 Expenses : Research and development 2,237 4,490 General and administrative 2,911 2,465 Depreciation and amortization 137 133 Total expenses 5,285 7,088 Other (income) loss : Interest and other financial expenses 60 54 Interest income (126 ) (99 ) Foreign exchange gain (24 ) (15 ) Total other income (90 ) (60 ) Net loss (5,189 ) (7,001 ) Other comprehensive (loss) income - Foreign currency translation adjustment (55 ) 20 Comprehensive loss $ (5,244 ) $ (6,981 ) Net loss per share Basic and diluted $ (0.11 ) $ (0.15 ) Weighted average common shares outstanding Basic and diluted 47,535,413 47,516,104 Loop Industries, Inc.Condensed Consolidated Balance Sheets(Unaudited) (in thousands of U.S. dollars, except per share data) As at May 31, 2024 February 29, 2024 Assets Current assets Cash and cash equivalents $ 5,291 $ 6,958 Sales tax, tax credits and other receivables 242 351 Inventories 99 102 Prepaid expenses and other deposits 525 577 Total current assets 6,157 7,988 Investment in joint venture 381 381 Property, plant and equipment, net 10,533 10,636 Intangible assets, net 1,671 1,548 Total assets $ 18,742 $ 20,553 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ 2,891 $ 2,321 Current portion of long-term debt 244 100 Total current liabilities 3,135 2,421 Due to customer 784 770 Long-term debt 5,555 3,220 Total liabilities 9,474 6,411 Stockholders' Equity Series A Preferred stock - - Common stock 5 5 Additional paid-in capital 172,162 171,792 Additional paid-in capital - Warrants 20,385 20,385 Accumulated deficit (182,159 ) (176,970 ) Accumulated other comprehensive loss (1,125 ) (1,070 ) Total stockholders' equity 9,268 14,142 Total liabilities and stockholders' equity $ 18,742 $ 20,553 Loop Industries, Inc.Condensed Consolidated Statements of Cash Flows(Unaudited) (in thousands of U.S. dollars) Three Months Ended May 31, 2024 2023 Cash Flows from Operating Activities Net loss $ (5,189 ) $ (7,001 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 137 133 Stock-based compensation expense 370 355 Accretion expense 28 17 Changes in operating assets and liabilities: Sales tax and tax credits receivable 108 (83 ) Inventories 3 (144 ) Prepaid expenses 51 (90 ) Accounts payable and accrued liabilities 577 1,321 Customer deposits - (12 ) Net cash used in operating activities (3,915 ) (5,504 ) Cash Flows from Investing Activities Deposits on machinery and equipment - (2,023 ) Additions to intangible assets (176 ) (99 ) Net cash used in investing activities (176 ) (2,122 ) Cash Flows from Financing Activities Borrowings under credit facility 2,517 - Repayment of long-term debt (25 ) (16 ) Net cash (used) provided by financing activities 2,492 (16 ) Effect of exchange rate changes (68 ) 21 Net decrease in cash (1,667 ) (7,621 ) Cash, cash equivalents and restricted cash, beginning of period 6,958 30,591 Cash, cash equivalents and restricted cash, end of period $ 5,291 $ 22,970 Supplemental Disclosure of Cash Flow Information: Income tax paid $ - $ - Interest paid $ 42 $ 21 Interest received $ 195 $ 99 About Loop Industries Loop Industries is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and away from our dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber, including plastic bottles and packaging, carpets and textiles of any color, transparency or condition and even ocean plastics that have been degraded by the sun and salt, to its base building blocks (monomers). The monomers are filtered, purified and polymerized to create virgin-quality Loop™ branded PET resin suitable for use in food-grade packaging and polyester fiber, thus enabling our customers to meet their sustainability objectives. Loop™ PET plastic and polyester fiber can be recycled infinitely without degradation of quality, successfully closing the plastic loop. Loop Industries is contributing to the global movement towards a circular economy by reducing plastic waste and recovering waste plastic for a sustainable future. Common shares of the Company are listed on the NASDAQ Global Market under the symbol "LOOP." For more information, please visit www.loopindustries.com. Follow Loop on Twitter: @loopindustries, Instagram: loopindustries, Facebook: Loop Industries and LinkedIn: Loop Industries Forward-Looking Statements This news release contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "should," "could," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or "continue," the negative of such terms or similar words. These forward-looking statements include, without limitation, statements about Loop's market opportunity, its strategies, ability to improve and expand its capabilities, competition, expected activities and expenditures as Loop pursues its business plan, the adequacy of its available cash resources, regulatory compliance, plans for future growth and future operations, the size of Loop's addressable market, market trends, and the effectiveness of Loop's internal control over financial reporting. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond Loop's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with among other things: (i) commercialization of our technology and products, (ii) our status of relationship with partners, (iii) development and protection of our intellectual property and products, (iv) industry competition, (v) our need for and ability to obtain additional funding relative to our current and future financial commitments, (vi) engineering, contracting, and building our manufacturing facilities, (vii) our ability to scale, manufacture, and sell our products in order to generate revenues, (viii) our proposed business model and our ability to execute thereon, (ix) the ability to obtain the necessary approvals or satisfy any closing conditions in respect of any of our proposed partnerships, (x) our joint venture projects and our ability to recover certain expenditures in connection therewith, (xi) adverse effects on the Company's business and operations as a result of increased regulatory, media, or financial reporting scrutiny, practices, rumors, or otherwise, (xii) disease epidemics and other health-related concerns and crises, which could result in reduced access to capital markets, supply chain disruptions and scrutiny, embargoing of goods produced in affected areas, government-imposed mandatory business closures and any resulting furloughs of our employees, government employment subsidy programs, travel restrictions or the like to prevent the spread of disease, or market or other changes that could result in non-cash impairments of our intangible assets, and property, plant and equipment, (xiii) the effect of the continuing worldwide macroeconomic uncertainty and its impacts, including inflation, market volatility and fluctuations in foreign currency exchange and interest rates, (xiv) the outcome of any U.S. Securities and Exchange Commission ("SEC") investigations or class action litigation filed against us, (xv) our ability to hire and/or retain qualified employees and consultants, (xvi) other events or circumstances over which we have little or no control, and (xvii) other factors discussed in Loop's Annual Report on Form 10-K for the fiscal year ended February 29, 2024 filed with the SEC and in Loop's subsequent filings with the SEC. More detailed information about Loop and the risk factors that may affect the realization of forward-looking statements is set forth in Loop's filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. Loop assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise. For More Information:Investor Relations:Kevin C. O'Dowd, Investor RelationsLoop Industries, Inc.+1 617-755-4602kodowd@loopindustries.com Media Inquiries:Andrea Kostiuk, VP Marketing & CommunicationsLoop Industries, Inc.+1 (450) 951-8555akostiuk@loopindustries.com SOURCE: Loop Industries, Inc. View the original press release on accesswire.com
Loop Management to hold update call at 8:30 am ET on July 16, 2024 MONTREAL, QC / ACCESSWIRE / July 15, 2024 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company," "Loop," "we," "us," or "our"), a clean technology company whose mission is to accelerate a circular plastics economy by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber, today provided an update on its activities and reported its consolidated financial results for the first quarter for fiscal year 2025. Commercialization Update Loop and its joint venture partner, Ester Industries Ltd. ("Ester"), continue to make significant progress towards the planned Infinite Loop™ manufacturing facility in India. The joint venture has identified an abundance of low-cost polyester fiber waste from the textile industry in India, which we believe will enable Loop to sell polyester to its customers in need of a solution for textile-to-textile recycling. We have begun the process of securing offtake agreements with our global customers for the Infinite Loop™ India facility. The joint venture has retained a leading engineering firm to secure the optimal site for the facility, in proximity to the polyester fiber waste and the availability of clean renewable energy. The Company continues to be confident with the progress being made towards fulfilling the closing conditions in the agreement with Reed Management SAS ("Reed") previously announced on May 30th, 2024, and continues to expect this financing transaction to close by the end of the second quarter of the current fiscal year. Due to the Company's current liquidity position, Loop is reviewing contingency plans for bridge financing in the event that the closing extends beyond the end of the second quarter. Financial Results and Expense Breakdown The Company's financial results for the quarter ended May 31, 2024 include $5.2 million of total expenses, which include the significant legal expenses incurred to execute the final agreements with Ester and Reed, and project costs related to the deployment of Loop's technology. Excluding these items, and non-cash expenses, the remaining expenses amount to $3.2 million for the current quarter. The Company projects that the prospective run rate for cash expenses will be approximately $1 million per month for the balance of fiscal 2025, excluding project costs. CEO Comment Daniel Solomita, Founder and CEO of Loop, commented on the recent updates, saying: "We continue to be highly positive about our ongoing communications with Reed management and our shared vision for the future of Loop. We look forward to consummating the Reed financing, along with the parallel government financing, and breaking ground on the India project at the end of the fiscal year. The planned Infinite Loop™ India facility combines an experienced like-minded chemical manufacturing partner with low capital investment and low-cost manufacturing, with a plentiful supply of waste plastics which today cannot be recycled and is in close proximity to our customer's supply chain. The partnership with Ester reflects a strategic focus going forward to concentrate capital investments in global low-cost manufacturing environments, and the Infinite Loop™ India facility is expected to provide very attractive economic returns. As recycling is eventually needed in all countries to tackle the ongoing plastic waste crisis, Loop intends to license its technology to partners in higher cost manufacturing countries" Corporate Update Call Senior Management of Loop will host a corporate update call, followed by a question-and-answer session, which can be accessed via the dial-in numbers below. Slides supporting Senior Management's remarks will be available via the Investors section of Loop's website at http://loopindustries.com/en/investors/overview. Date: Tuesday, July 16, 2024Time: 8:30 am Eastern Time Participant joining details (by Telephone): Joining by Telephone:United States (Local): +1 404 975 4839 United States (Toll-Free): +1 833 470 1428 Access Code: 978353 OR Registration Link: https://www.netroadshow.com/events/login?show=96a88ec2&confId=68199 - Avoid wait time - Bypass speaking with an operator to join the call - Receive a Calendar Invitation with call access details including your unique PIN Results of Operations The following table summarizes our operating results for the three-month periods ended May 31, 2024 and 2023, in thousands of U.S. Dollars. Three months ended May 31, 2024 2023 Change favorable / (unfavorable) Revenue from contracts with customers $ 6 $ 27 $ (21 ) Expenses Research and development Machinery and equipment expenditures 3 1,236 1,233 External engineering 628 1,155 527 Employee compensation 1,015 1,286 271 Stock-based compensation 129 160 31 Plant and laboratory operating expenses 270 469 199 Other 192 184 (8 ) Total research and development 2,237 4,490 2,253 General and administrative Professional fees 1,255 619 (636 ) Employee compensation 635 637 2 Stock-based compensation 241 196 (45 ) Insurance 492 703 211 Other 288 310 22 Total general and administrative 2,911 2,465 (446 ) Depreciation and amortization 137 133 (4 ) Interest and other financial expenses 60 54 (6 ) Interest income (126 ) (99 ) 27 Foreign exchange gain (24 ) (15 ) 9 Total expenses 5,195 7,028 1,833 Net loss $ (5,189 ) $ (7,001 ) $ 1,812 First Quarter Ended May 31, 2024 Revenues Revenues for the three-month period ended May 31, 2024 decreased $21 to $6, as compared to $27 for the same period in 2023. The revenues resulted from the delivery of initial volumes to customers of Loop™ PET resin produced using monomers manufactured at the Terrebonne Facility. Research and Development Research and development expense for the three-month period ended May 31, 2024 decreased $2,253 to $2,237, as compared to $4,490 for the same period in 2023. The decrease was primarily attributable to a $1,233 decrease in purchases of machinery and equipment used at the Terrebonne Facility, a $527 decrease in external engineering costs for design work for our Infinite Loop™ manufacturing process, a $271 decrease in employee compensation expenses, and a $199 decrease in plant and laboratory expenses at our Terrebonne Facility. General and administrative expenses General and administrative expenses for the three-month period ended May 31, 2024 increased $446 to $2,911, as compared to $2,465 for the same period in 2023. The increase was primarily attributable to a $636 increase in professional fees which is mainly attributable to legal costs related to our partnerships with Reed and Ester. This increase was partially offset by a $211 decrease in insurance costs. Net Loss The net loss for the three-month period ended May 31, 2024 decreased $1,812 to $5,189, as compared to $7,001 for the same period in 2023. The decrease was primarily due to the decrease of $2,253 in research and development expenses and partially offset by increased general and administrative expenses of $446. Loop Industries, Inc.Condensed Consolidated Statements of Operations and Comprehensive Loss(Unaudited) (in thousands of U.S. dollars, except per share data) Three Months Ended May 31, 2024 May 31, 2023 Revenue from contracts with customers $ 6 $ 27 Expenses : Research and development 2,237 4,490 General and administrative 2,911 2,465 Depreciation and amortization 137 133 Total expenses 5,285 7,088 Other (income) loss : Interest and other financial expenses 60 54 Interest income (126 ) (99 ) Foreign exchange gain (24 ) (15 ) Total other income (90 ) (60 ) Net loss (5,189 ) (7,001 ) Other comprehensive (loss) income - Foreign currency translation adjustment (55 ) 20 Comprehensive loss $ (5,244 ) $ (6,981 ) Net loss per share Basic and diluted $ (0.11 ) $ (0.15 ) Weighted average common shares outstanding Basic and diluted 47,535,413 47,516,104 Loop Industries, Inc.Condensed Consolidated Balance Sheets(Unaudited) (in thousands of U.S. dollars, except per share data) As at May 31, 2024 February 29, 2024 Assets Current assets Cash and cash equivalents $ 5,291 $ 6,958 Sales tax, tax credits and other receivables 242 351 Inventories 99 102 Prepaid expenses and other deposits 525 577 Total current assets 6,157 7,988 Investment in joint venture 381 381 Property, plant and equipment, net 10,533 10,636 Intangible assets, net 1,671 1,548 Total assets $ 18,742 $ 20,553 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities $ 2,891 $ 2,321 Current portion of long-term debt 244 100 Total current liabilities 3,135 2,421 Due to customer 784 770 Long-term debt 5,555 3,220 Total liabilities 9,474 6,411 Stockholders' Equity Series A Preferred stock - - Common stock 5 5 Additional paid-in capital 172,162 171,792 Additional paid-in capital - Warrants 20,385 20,385 Accumulated deficit (182,159 ) (176,970 ) Accumulated other comprehensive loss (1,125 ) (1,070 ) Total stockholders' equity 9,268 14,142 Total liabilities and stockholders' equity $ 18,742 $ 20,553 Loop Industries, Inc.Condensed Consolidated Statements of Cash Flows(Unaudited) (in thousands of U.S. dollars) Three Months Ended May 31, 2024 2023 Cash Flows from Operating Activities Net loss $ (5,189 ) $ (7,001 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 137 133 Stock-based compensation expense 370 355 Accretion expense 28 17 Changes in operating assets and liabilities: Sales tax and tax credits receivable 108 (83 ) Inventories 3 (144 ) Prepaid expenses 51 (90 ) Accounts payable and accrued liabilities 577 1,321 Customer deposits - (12 ) Net cash used in operating activities (3,915 ) (5,504 ) Cash Flows from Investing Activities Deposits on machinery and equipment - (2,023 ) Additions to intangible assets (176 ) (99 ) Net cash used in investing activities (176 ) (2,122 ) Cash Flows from Financing Activities Borrowings under credit facility 2,517 - Repayment of long-term debt (25 ) (16 ) Net cash (used) provided by financing activities 2,492 (16 ) Effect of exchange rate changes (68 ) 21 Net decrease in cash (1,667 ) (7,621 ) Cash, cash equivalents and restricted cash, beginning of period 6,958 30,591 Cash, cash equivalents and restricted cash, end of period $ 5,291 $ 22,970 Supplemental Disclosure of Cash Flow Information: Income tax paid $ - $ - Interest paid $ 42 $ 21 Interest received $ 195 $ 99 About Loop Industries Loop Industries is a technology company whose mission is to accelerate the world's shift toward sustainable PET plastic and polyester fiber and away from our dependence on fossil fuels. Loop Industries owns patented and proprietary technology that depolymerizes no and low-value waste PET plastic and polyester fiber, including plastic bottles and packaging, carpets and textiles of any color, transparency or condition and even ocean plastics that have been degraded by the sun and salt, to its base building blocks (monomers). The monomers are filtered, purified and polymerized to create virgin-quality Loop™ branded PET resin suitable for use in food-grade packaging and polyester fiber, thus enabling our customers to meet their sustainability objectives. Loop™ PET plastic and polyester fiber can be recycled infinitely without degradation of quality, successfully closing the plastic loop. Loop Industries is contributing to the global movement towards a circular economy by reducing plastic waste and recovering waste plastic for a sustainable future. Common shares of the Company are listed on the NASDAQ Global Market under the symbol "LOOP." For more information, please visit www.loopindustries.com. Follow Loop on Twitter: @loopindustries, Instagram: loopindustries, Facebook: Loop Industries and LinkedIn: Loop Industries Forward-Looking Statements This news release contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "should," "could," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or "continue," the negative of such terms or similar words. These forward-looking statements include, without limitation, statements about Loop's market opportunity, its strategies, ability to improve and expand its capabilities, competition, expected activities and expenditures as Loop pursues its business plan, the adequacy of its available cash resources, regulatory compliance, plans for future growth and future operations, the size of Loop's addressable market, market trends, and the effectiveness of Loop's internal control over financial reporting. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond Loop's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with among other things: (i) commercialization of our technology and products, (ii) our status of relationship with partners, (iii) development and protection of our intellectual property and products, (iv) industry competition, (v) our need for and ability to obtain additional funding relative to our current and future financial commitments, (vi) engineering, contracting, and building our manufacturing facilities, (vii) our ability to scale, manufacture, and sell our products in order to generate revenues, (viii) our proposed business model and our ability to execute thereon, (ix) the ability to obtain the necessary approvals or satisfy any closing conditions in respect of any of our proposed partnerships, (x) our joint venture projects and our ability to recover certain expenditures in connection therewith, (xi) adverse effects on the Company's business and operations as a result of increased regulatory, media, or financial reporting scrutiny, practices, rumors, or otherwise, (xii) disease epidemics and other health-related concerns and crises, which could result in reduced access to capital markets, supply chain disruptions and scrutiny, embargoing of goods produced in affected areas, government-imposed mandatory business closures and any resulting furloughs of our employees, government employment subsidy programs, travel restrictions or the like to prevent the spread of disease, or market or other changes that could result in non-cash impairments of our intangible assets, and property, plant and equipment, (xiii) the effect of the continuing worldwide macroeconomic uncertainty and its impacts, including inflation, market volatility and fluctuations in foreign currency exchange and interest rates, (xiv) the outcome of any U.S. Securities and Exchange Commission ("SEC") investigations or class action litigation filed against us, (xv) our ability to hire and/or retain qualified employees and consultants, (xvi) other events or circumstances over which we have little or no control, and (xvii) other factors discussed in Loop's Annual Report on Form 10-K for the fiscal year ended February 29, 2024 filed with the SEC and in Loop's subsequent filings with the SEC. More detailed information about Loop and the risk factors that may affect the realization of forward-looking statements is set forth in Loop's filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. Loop assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise. For More Information:Investor Relations:Kevin C. O'Dowd, Investor RelationsLoop Industries, Inc.+1 617-755-4602kodowd@loopindustries.com Media Inquiries:Andrea Kostiuk, VP Marketing & CommunicationsLoop Industries, Inc.+1 (450) 951-8555akostiuk@loopindustries.com SOURCE: Loop Industries, Inc. View the original press release on accesswire.com