Loop Industries — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Total revenues for the three months ended August 31, 2026, were $117,000, an increase of $117,000 from $0 in the same period in 2025; revenue for the six months ended August 31, 2026, was $296,000, an increase of $44,000 from $252,000 in the prior year period.
• Net loss for the three months ended August 31, 2026, was $2,988,000, a decrease of $216,000 from $3,204,000 in the prior year; net loss for the six months ended August 31, 2026, was $6,372,000, a decrease of $279,000 from $6,651,000 in the prior year.
• Cash operating expenses for the second quarter were $1.6 million, a decrease of $0.8 million year-over-year.
• Research and development expenses decreased by $303,000 to $540,000 in the second quarter and by $601,000 to $1,501,000 in the six-month period compared to the prior year.
• General and administrative expenses decreased by $393,000 to $1,478,000 in the second quarter and by $467,000 to $3,052,000 in the six-month period compared to the prior year.
• Cost of services was $113,000 for the second quarter and $292,000 for the six-month period, compared to $0 and $114,000 respectively in the prior year.
• Loss on equity accounted investment was $431,000 for the second quarter and $750,000 for the six-month period, compared to $43,000 and $345,000 respectively in the prior year.
• Total assets were $6,373,000 as of August 31, 2026, down from $8,559,000 as of February 28, 2026.
• Total liabilities were $20,507,000 as of August 31, 2026, up from $18,139,000 as of February 28, 2026.
• Stockholders' deficit was $14,134,000 as of August 31, 2026, compared to a deficit of $9,580,000 as of February 28, 2026.
• Cash and cash equivalents were $836,000 as of August 31, 2026, down from $2,356,000 as of February 28, 2026.
• Total available liquidity was $1.9 million as of August 31, 2026.
• Net cash used in operating activities for the six months ended August 31, 2026, was $2,394,000, compared to $5,604,000 in the prior year.
• Net cash provided by financing activities for the six months ended August 31, 2026, was $1,731,000, compared to $51,000 in the prior year.
• Net cash used in investing activities for the six months ended August 31, 2026, was $819,000, compared to $133,000 in the prior year.
• Basic and diluted net loss per share was $0.06 for the second quarter and $0.13 for the six-month period ended August 31, 2026, compared to $0.07 and $0.14 respectively in the prior year.

Guidance and Future Outlook

• The India facility project target timeline is for construction completion by the end of 2028, with startup and commissioning scheduled for 2029.
• A second facility is planned for the India site, expected to be larger than the first, to be developed following the successful start-up of the initial facility.
• The Special Committee is evaluating a full spectrum of financing alternatives, including equity, debt, and non-dilutive options, to optimize capital structure and support long-term growth.
• Management stated they continue to refine their commercial roadmap with a focus on disciplined capital allocation and project execution.

Business Segments and Product Lines

• Revenues for the second quarter and six-month period resulted from engineering services provided to the India Joint Venture (JV).
• Revenues for the six months ended August 31, 2025, included $244,000 from engineering services and $8,000 from sales of Loop™ PET resin; no product sales were recorded in the current six-month period.
• Loop's technology depolymerizes waste PET plastic and polyester fiber into base building blocks (monomers DMT and MEG), which are purified and polymerized into virgin-quality Loop™ branded PET resin.
• The India facility is being rescaled to a capacity of 45 kilotonnes per annum (KTA).
• Toyo Engineering India Private Limited is completing a comprehensive analysis to finalize the updated cost estimate for the rescaled India facility.

Market and Competitive Landscape

• The rescaled India facility is positioned to deliver high returns due to the advantages of Loop's unique technology, low operating costs, and access to plentiful textile waste in a low-cost environment.
• The company is building a foundation for global growth alongside an advancing partnership in Europe.
• The company's mission is to accelerate the shift from fossil fuels to sustainable PET plastic and polyester fiber.

Risks and Challenges

• There can be no assurance that financing, engineering-services revenue, or licensing revenue will be sufficient to fund operations through commercial start-up.
• The timing and amount of any financing, engineering-services revenue, or licensing revenue remain subject to execution, financing availability, and project progress.
• The company faces risks related to its ability to commercialize technology, obtain additional funding, continue as a going concern, and execute its proposed business model.
• Forward-looking statements are subject to risks including regulatory scrutiny, litigation outcomes, supply chain disruptions, and macroeconomic uncertainty.

Management Commentary and Tone

• Daniel Solomita, Founder and CEO, stated: "We continue to refine our commercial roadmap with a focus on disciplined capital allocation and project execution."
• Management noted that rescaling the India facility to 45 KTA is intended to lower the project's capital requirement while retaining the benefits of regional feedstock availability and a lower-cost operating environment.

Other Key Points

• A Special Committee was formed by the Board of Directors in September 2026 to evaluate financing alternatives to support the India JV.
• The Company is seeking capital to fund its expected equity contribution to the India JV and its ongoing pre-commercial operating expenses.
• An update call was scheduled for Friday, October 16, 2026, at 8:45 AM ET to discuss results and commercial strategy.
• During the six months ended August 31, 2026, the Company made an investment in the joint venture of $737,000.
• Proceeds from ATM equity offering, net of issuance costs, were $452,000 for the six-month period.
• Borrowings under the credit facility were $1,411,000 for the six-month period.
• The Company has 48,812,574 common shares issued and outstanding as of August 31, 2026.
• Series B Convertible Preferred stock value was $12,804,000 as of August 31, 2026.