loop_10q.htm

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended August 31, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from ___________ to __________

Commission File No. 001-38301

Loop Industries, Inc.

(Exact name of Registrant as specified in its charter)

Nevada		27-2094706
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

480 Fernand-Poitras Terrebonne,Québec, Canada J6Y 1Y4

(Address of principal executive offices zip code)

Registrant’s telephone number, including area code (450) 951-8555

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	LOOP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files) Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As at October 14, 2024, there were 47,620,263 shares of the Registrant’s common stock, par value $0.0001 per share, outstanding.

LOOP INDUSTRIES, INC.

TABLE OF CONTENTS

		Page No.
PART I. Financial Information

Item 1.	Financial Statements		F-1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		3
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		15
Item 4.	Controls and Procedures		15

PART II. Other Information

Item 1.	Legal Proceedings		16
Item 1A.	Risk Factors		16
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		17
Item 3.	Defaults Upon Senior Securities		17
Item 4.	Mine Safety Disclosures		17
Item 5.	Other Information		17
Item 6.	Exhibits		18

	Signatures		19

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Loop Industries, Inc.

Three and Six months ended August 31, 2024

Index to the Unaudited Interim Condensed Consolidated Financial Statements

Contents		Page(s)

Condensed consolidated balance sheets as at August 31, 2024 (Unaudited) and February 29, 2024		F‑2

Condensed consolidated statements of operations and comprehensive loss for the three and six months ended August 31, 2024 and 2023 (Unaudited)		F‑3

Condensed consolidated statements of changes in stockholders’ equity for the three and six months ended August 31, 2024 and 2023 (Unaudited)		F‑4

Condensed consolidated statements of cash flows for the six months ended August 31, 2024 and 2023 (Unaudited)		F‑6

Notes to the condensed consolidated financial statements (Unaudited)		F‑7

F-1

Table of Contents

Loop Industries, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands of U.S. dollars, except per share data)	As at
	August 31, 2024			February 29, 2024

Assets
Current assets
Cash and cash equivalents	$	1,395		$	6,958
Sales tax, tax credits and other receivables (Note 3)		392			351
Inventories (Note 4)		81			102
Prepaid expenses and other deposits (Note 5)		492			577
Total current assets		2,360			7,988
Investment in joint venture		381			381
Property, plant and equipment, net (Note 6)		10,476			10,636
Intangible assets, net (Note 7)		1,786			1,548
Total assets	$	15,003		$	20,553

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable and accrued liabilities (Note 9)	$	4,376		$	2,321
Current portion of long-term debt (Note 10)		393			100
Unearned revenue (Note 11)		101			-
Total current liabilities		4,870			2,421
Due to customer		800			770
Long-term debt (Note 10)		4,499			3,220
Total liabilities		10,169			6,411

Stockholders’ Equity
Series A Preferred stock par value $0.0001; 25,000,000 shares authorized; one share issued and outstanding		-			-
Common stock par value $0.0001; 250,000,000 shares authorized; 47,620,263 shares issued and outstanding (February 29, 2024 – 47,528,908) (Note 12)		5			5
Additional paid-in capital		185,868			171,792
Additional paid-in capital – Warrants		7,041			20,385
Accumulated deficit		(186,998	)		(176,970	)
Accumulated other comprehensive loss		(1,082	)		(1,070	)
Total stockholders’ equity		4,834			14,142
Total liabilities and stockholders’ equity	$	15,003		$	20,553

Going Concern (Note 1)

See accompanying notes to the condensed consolidated financial statements.

F-2

Table of Contents

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						Six Months Ended
	August 31, 2024			August 31, 2023			August 31, 2024			August 31, 2023
Revenue from contracts with customers	$	23		$	54		$	29		$	81

Expenses :
Research and development (Note 13)		1,945			2,038			4,182			6,528
General and administrative (Note 14)		2,595			2,843			5,506			5,308
Depreciation and amortization (Notes 6 and 7)		129			136			266			268
Total expenses		4,669			5,017			9,954			12,104

Other loss (income) :
Interest and other financial expenses		119			44			179			98
Interest income		(6	)		(219	)		(132	)		(318	)
Foreign exchange loss (gain)		80			(38	)		56			(52	)
Total other loss (income)		193			(213	)		103			(272	)
Net loss		(4,839	)		(4,750	)		(10,028	)		(11,751	)

Other comprehensive loss -
Foreign currency translation adjustment		43			84			(12	)		104
Comprehensive loss	$	(4,796	)	$	(4,666	)	$	(10,040	)	$	(11,647	)
Net loss per share
Basic and diluted	$	(0.10	)	$	(0.10	)	$	(0.21	)	$	(0.25	)
Weighted average common shares outstanding
Basic and diluted		47,573,302			47,521,187			47,554,357			47,518,645

Going Concern (Note 1)

See accompanying notes to the condensed consolidated financial statements.

F-3

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Loop Industries, Inc.

Condensed Consolidated Statement of Changes in Stockholders’ Equity

(Unaudited)

(in thousands of U.S. dollars, except for share data)	Three months ended August 31, 2024
	Common stock par value $0.0001				Preferred stock par value $0.0001				Additional		Additional Paid-in						Accumulated Other			Total
	Number of Shares		Amount		Number of Shares		Amount		Paid-in Capital		Capital – Warrants			Accumulated Deficit			Comprehensive Income (Loss)			Stockholders’ Equity
Balance, May 31, 2024		47,538,745	$	5		1	$	-	$	172,162	$	20,385		$	(182,159	)	$	(1,125	)	$	9,268
Issuance of shares upon the vesting of restricted stock units (Note 15)		81,518		-		-		-		-		-			-			-			-
Expiration of warrants (Note 17)		-		-		-		-		13,344		(13,344	)		-			-			-
Stock options issued for services (Note 15)		-		-		-		-		148		-			-			-			148
Restricted stock units issued for services (Note 15)		-		-		-		-		214		-			-			-			214
Foreign currency translation		-		-		-		-		-		-			-			43			43
Net loss		-		-		-		-		-		-			(4,839	)		-			(4,839	)
Balance, August 31, 2024		47,620,263	$	5		1	$	-	$	185,868	$	7,041		$	(186,998	)	$	(1,082	)	$	4,834

Going Concern (Note 1)

(in thousands of U.S. dollars, except for share data)	Three months ended August 31, 2023
	Common stock par value $0.0001				Preferred stock par value $0.0001				Additional		Additional Paid-in					Accumulated Other			Total
	Number of Shares		Amount		Number of Shares		Amount		Paid-in Capital		Capital – Warrants		Accumulated Deficit			Comprehensive Income (Loss)			Stockholders’ Equity
Balance, May 31, 2023		47,521,187	$	5		1	$	-	$	170,725	$	20,385	$	(162,884	)	$	(1,121	)	$	27,110
Stock options issued for services (Note 15)		-		-		-		-		172		-		-			-			172
Restricted stock units issued for services (Note 15)		-		-		-		-		216		-		-			-			216
Foreign currency translation		-		-		-		-		-		-		-			84			84
Net loss		-		-		-		-		-		-		(4,750	)		-			(4,750	)
Balance, August 31, 2023		47,521,187	$	5		1	$	-	$	171,113	$	20,385	$	(167,634	)	$	(1,037	)	$	22,832

Going Concern (Note 1)

See accompanying notes to the condensed consolidated financial statements.

F-4

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Loop Industries, Inc.

Condensed Consolidated Statement of Changes in Stockholders’ Equity

(Unaudited)

(in thousands of U.S. dollars, except for share data)	Six months ended August 31, 2024
	Common stock par value $0.0001				Preferred stock par value $0.0001				Additional		Additional Paid-in						Accumulated Other			Total
	Number of Shares		Amount		Number of Shares		Amount		Paid-in Capital		Capital – Warrants			Accumulated Deficit			Comprehensive Income (Loss)			Stockholders’ Equity
Balance, February 28, 2024		47,528,908	$	5		1	$	-	$	171,792	$	20,385		$	(176,970	)	$	(1,070	)	$	14,142
Issuance of shares upon the vesting of restricted stock units (Note 15)		91,355		-		-		-		-		-			-			-			-
Expiration of warrants (Note 17)		-		-		-		-		13,344		(13,344	)		-			-			-
Stock options issued for services (Note 15)		-		-		-		-		295		-			-			-			295
Restricted stock units issued for services (Note 15)		-		-		-		-		437		-			-			-			437
Foreign currency translation		-		-		-		-		-		-			-			(12	)		(12	)
Net loss		-		-		-		-		-		-			(10,028	)		-			(10,028	)
Balance, August 31, 2024		47,620,263	$	5		1	$	-	$	185,868	$	7,041		$	(186,998	)	$	(1,082	)	$	4,834

Going Concern (Note 1)

SEC Form 10-Q filed by Loop Industries Inc.