Star Metro - Loop Industries Reports Fourth Quarter and Full Year Fiscal 2025 Results and Provides Update on Business Developments

MONTRÉAL, QUEBEC / ACCESS Newswire / May 29, 2025 / Loop Industries, Inc. (Nasdaq:LOOP) (the "Company," "Loop," "we," "us," or "our"), a clean technology company whose mission is to accelerate a circular economy for polyester by manufacturing 100% recycled polyethylene terephthalate ("PET") plastic and polyester fiber, today reported its consolidated financial results for the fourth quarter for fiscal year 2025 and provided an update on business developments.

Loop Generates First Significant Revenue

Loop generated $10.8 million in total revenue in the quarter ending February 28, 2025, including $10.4 million in licensing revenue and $0.4 million in engineering fees.

The licensing revenue represents the up-front payment for Loop's first technology license sold to Reed Societe Generale Group for the right to build one Infinite Loop™ facility in Europe. Loop will also receive an additional €10 million in licensing fees based on the successful achievement of project milestones prior to construction.

Loop entered into an engineering services agreement with its India JV, Ester Loop Infinite Technologies ("ELITe"). Revenue resulting from this agreement includes $368,000 in the fourth quarter, with the remaining $237,000 anticipated in the first quarter. Furthermore, we expect additional engineering revenue from ELITe of approximately $750,000 in the remainder of fiscal year 2026.

Infinite Loop™ India Update

Construction of the Infinite Loop™ India facility by ELITe continues to advance significantly. Notably, TATA Consulting Engineers completed the front-end engineering design (FEED) study, confirming the initial capital expenditure projection. ELITe has decided to integrate a continuous polymerization line into the Infinite Loop™ India facility, to further enhance its operational efficiency. The total estimated investment for the facility, including the continuous polymerization line, construction financing, land acquisition, engineering expenses, and initial working capital, is $176 million. This amount is intended to be funded through a mix of project debt and equity investments from Loop and Ester. A leading global advisory firm is currently managing the debt syndication process for ELITe. Concurrently, Loop is actively engaged in discussions to secure the balance of its portion of the necessary equity financing. ELITe is continuing to progress towards finalizing its site acquisition within the Gujarat province and securing its feedstock requirements.

Loop believes that the low cost structure of the Indian facility will permit it to offer virgin quality polyester fiber and PET resin at competitive pricing to its customers, while achieving its objectives for profitability and return on investment, and generating cash flow to fund future capacity expansion.

Loop is engaged in negotiations with apparel brands, textile companies and CPG brands to secure off-take supply agreements for the anticipated output of the Infinite Loop™ manufacturing facility in India. This facility is expected to have an annual production capacity of 70,000 metric tons of both textile-to-textile polyester fiber and bottle-grade PET resin.

Groundbreaking for the Infinite Loop™ India facility is expected to occur in the second half of calendar 2025, with commercial operations projected to commence in calendar 2027.

European Partnership with Reed Societe General Group

Loop and Societe Generale Group are evaluating potential locations for the inaugural Infinite Loop™ facility in Europe. The immediate focus is to finalize the site selection and begin the necessary engineering studies.

Loop intends to adopt a modular approach to implementing its Infinite Loop™ technology in Europe. By manufacturing standardized modules for all necessary process equipment, piping, instrumentation, and electrical systems in a low-cost manufacturing region, the project would achieve significant reductions in both capital expenditures and construction timelines. The modules can then be shipped globally and installed on site with minimal local labor costs.

Financial highlights

During the fourth quarter, the Company secured $20.8 million through the sale of its first technology license and issuance of Series B Convertible Preferred Stock to Reed Societe Generale Group. At the end of the quarter, after repaying its credit facility of $2.4 million from a Canadian bank which is available and undrawn at the present time, financing initial contributions to ELITe of $1.9 million, and funding cash operating expenses* for the quarter of $2.6 million reflecting a significant year-over-year decrease of $2.1 million, the Company had cash and cash equivalents of $13.0 million. As a result, the Company believes that it concluded Q4 with sufficient liquidity to fund operations while it secures financing for its equity contribution to ELITe and to fund its operating expenses prior to the start-up of the Indian facility.

*Cash operating expenses include research & development and general & administrative expenses, less stock-based compensation expenses.

CEO Comment

Daniel Solomita, Founder and CEO of Loop, commented on the continuing progress in Loop's strategy implementation, saying: "The positive FEED study by TATA Consulting Engineers, confirming our initial capital expenditure projections, further solidifies our confidence in the Infinite Loop™ India project. In addition, integrating a continuous polymerization line enables us to deliver competitive pricing to our customers while ensuring robust profitability for ELITe, and generate cash flow for continuing growth and capacity expansion."

Mr. Solomita continued by commenting: "Generating over $10 million this quarter, primarily through the sale of our first technology license, marks a significant financial milestone for Loop. We continue to make advancements in our European partnership with Reed Societe Generale Group, which are enabling us to execute on our technology modularization strategy. This strategy is key to significantly reducing both capex and timelines for the construction of future Infinite Loop Plants."

"Finally, in implementing our strategy, I am supported by a strong leadership team, including Adel Essaddam, Chief Operating Officer, and Giovanni Catino, Chief Revenue Officer. Their recent promotions reflect the important role they are playing as we move forward with the commercialization roll-out of our unique technology."

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.

Date: Friday, May 30, 2025
Time: 8:45 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: 757116

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Results of Operations

Fourth Quarter Ended February 28, 2025

The following table summarizes our operating results for the three-month periods ended February 28, 2025 and February 29, 2024, in thousands of U.S. Dollars.

Revenues

Revenues for the three-month period ended February 28, 2025 increased $10,764 to $10,809 as compared to $45 for the same period in 2024. The revenues for the three-month period ended February 28, 2025 resulted from $10,395 in licensing revenue from the up-front royalty received from Reed Societe Generale Group, $368 in engineering fees and $46 from sales of Loop^™ PET resin produced using monomers manufactured at the Terrebonne Facility. The revenues of $45 for the three-month period ended February 29, 2024 resulted from sales of Loop^™ PET resin.

Research and Development

Research and development expenses for the three-month period ended February 28, 2025 decreased $1,712 to $1,306, as compared to $3,018 for the same period in 2024. The decrease was primarily attributable to a $888 decrease in plant and laboratory operating expenses, which included an inventory write-down of $817 on finished goods and work in process inventories in the three-month period ended February 29, 2024, a $657 decrease in external engineering expenses, and a $310 decrease in employee compensation expenses.

General and administrative expenses

General and administrative expenses for the three-month period ended February 28, 2025 decreased $647 to $1,574, as compared to $2,221 for the same period in 2024. The decrease was primarily attributable to a decrease of $342 in employee compensation expenses including stock-based compensation, a decrease of $173 in insurance expenses, and a decrease of $107 in professional fees.

Loss on equity accounted investment

Loss on equity accounted investment increased by $687 for the three-month period ended February 28, 2025. This loss relates to the Company's 50% portion of the loss incurred by the India JV for the three-month period ended February 28, 2025, during which the India JV incurred preliminary project costs for the planned Infinite Loop™ facility in India, which are mainly engineering fees.

Net Loss

The net income for the three-month period ended February 28, 2025 increased $11,973 to $6,882 in the period, as compared to a net loss of $5,091 for the same period in 2024. The increase was primarily due to the increase of $10,764 in revenues, the decrease of $1,712 in research and development expenses, and the decrease of $647 in general and administrative expenses, which were partially offset by an increase in $687 in loss on equity accounted investment and an increase in $511 in interest and other financial expenses.

Fiscal Year Ended February 28, 2025

The following table summarizes our operating results for the years ended February 28, 2025 and February 29, 2024, in thousands of U.S. Dollars.

Revenues

Revenues for the year ended February 28, 2025 increased $10,736 to $10,889, as compared to $153 for the same period in 2024. The revenues for the year ended February 28, 2025 resulted from $10,395 in licensing revenue from the up-front royalty received from Reed Societe Generale Group, $368 in engineering fees and $126 from sales of Loop^™ PET resin produced using monomers manufactured at the Terrebonne Facility. The revenues of $153 for the year ended February 29, 2024 resulted from sales of Loop^™ PET resin.

Research and Development

Research and development expenses for the year ended February 28, 2025 decreased significantly by $4,515 to $6,864, as compared to $11,379 for the same period in 2024 as we believe we have established to our satisfaction that Loop's technology can be successfully scaled up, and are now focusing on the development of large-scale commercial manufacturing facilities. The decrease was primarily attributable to a $1,448 decrease in plant and laboratory operating expenses, which included an inventory write-down of $817 on finished goods and work in process inventories in the year ended February 29, 2024, a $1,345 decrease in employee compensation expenses including stock-based compensation, a $1,078 decrease in purchases of machinery and equipment for the Terrebonne Facility, and a $860 decrease in external engineering expenses.

General and administrative expenses

General and administrative expenses for the year ended February 28, 2025 decreased $760 to $9,228, as compared to $9,988 for the same period in 2024. The decrease was primarily attributable to a $809 decrease in insurance expenses, and a decrease of $401 in employee compensation expenses, which were partially offset by a $500 increase in professional fees.

Impairment of equipment

Impairment of equipment expense increased by $8,460 for the year ended February 28, 2025, reflecting an impairment loss for equipment of $8,460. This impairment was due to the termination of the joint venture agreement between the Company and SKGC under which they had intended to construct and operate an Infinite Loop™ manufacturing facility in Ulsan, South Korea. While the Company plans to utilize the equipment in a future commercial production facility, the deployment plans for the use of this equipment are not fully developed at this time, therefore the recoverability of the carrying value of the equipment was tested for impairment, resulting in an impairment loss of $8,460 being recognized in the year ended February 28, 2025.

Loss on equity accounted investment

Loss on equity accounted investment increased by $687 for the year ended February 28, 2025. This loss relates to the Company's 50% portion of the loss incurred by the India JV for the year ended February 28, 2025, during which the India JV incurred preliminary project costs for the planned Infinite Loop™ facility in India, which are mainly engineering fees.

Net Loss

The net loss for the year ended February 28, 2025 decreased $6,030 to $15,057, as compared to $21,087 for the same period in 2024. The decrease was primarily due to the $10,736 increase in revenues, the $4,515 decrease in research and development expenses, and the $760 decrease in general and administrative expenses. The decrease in net loss was partially offset by the impairment of equipment of $8,460, an increase in $687 in loss on equity accounted investment, and an increase in $659 in interest and other financial expenses.

Loop Industries, Inc.
Condensed Consolidated Balance Sheets

Loop Industries, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss

Loop Industries, Inc.
Condensed Consolidated Statements of Cash Flows

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 packaging, and textiles such as carpets and clothing into its base building block monomers DMT and MEG. The monomers are separated, 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, helping to close the plastic loop. Loop Industries is committed to 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

For More Information:

Investor Relations:

Kevin C. O'Dowd, Investor Relations
Loop Industries, Inc.
+1 617-755-4602
[email protected]

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and as defined in the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, ability to improve and expand our technology and commercial capabilities, competition, expected activities, timelines, and expenditures as we pursue our business plan, the adequacy of our available cash resources, regulatory compliance, plans for future growth and future operations; anticipated capital requirements, milestones and timelines, and capacity projections for our India JV and European partnership initiatives; the structure, financing, and expected benefits of our licensing and joint venture arrangements; progress on off-take negotiations and related revenue potential; the expected efficiency, scalability, and cost advantages of our proposed modular approach.. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Actual results may differ materially from the projections discussed in these forward-looking statements. The economic environment within which we operate could materially affect our actual results. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. These risks and other factors include, but are not limited to, those listed under "Risk Factors." Additional factors that could materially affect these forward-looking statements and/or projections include, among other things: (i) our ability to commercialize our technology and products, (ii) the status of our relationships with our 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) our ability to continue as a going concern, (vii) engineering, contracting, and building our manufacturing facilities, (viii) our ability to scale, manufacture, and sell our products and to license our technology in order to generate revenues, (ix) our proposed business model and our ability to execute it, (x) our ability to obtain the necessary approvals or satisfy any closing conditions in respect of any of our proposed partnerships, (xi) our joint venture projects and our ability to recover certain expenditures in connection to them, (xii) adverse effects on the Company's business and operations as a result of increased regulatory, media, or financial reporting scrutiny, practices, rumors, or otherwise, (xiii) public health issues, such as disease epidemics, which may lead to reduced access to capital markets, supply chain disruptions, and government-imposed business closures, (xiv) war, regional tensions, and economic or other conflicts including trade disputes and increasing protectionist measures that could impact market stability and our business; (xv) the effect of the continuing worldwide macroeconomic uncertainty and its impacts, including inflation, market volatility and fluctuations in foreign currency exchange and interest rates, (xvi) the outcome of any SEC investigations or class action litigation filed against us, (xvii) our ability to hire and/or retain qualified employees and consultants, (xviii) other events or circumstances over which we have little or no control, and (xix) other factors discussed in Loop's Annual Report on Form 10-K for the fiscal year ended February 28, 2025 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, unless otherwise required by law.

SOURCE: Loop Industries

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J.Campbell--SMC