Loop Industries (LOOP) investor relations material

Executive summary

• Progress continues on Infinite Loop manufacturing facilities in India and Europe, with advanced offtake negotiations and strong alignment with JV partners.

• Revenues rose to $252,000 for the quarter ended May 31, 2025, mainly from engineering services and PET resin sales, reflecting early commercialization.

• Net loss narrowed to $3.45 million from $5.19 million year-over-year, driven by lower R&D and G&A expenses.

• Modularization strategy enables significant CapEx reduction and accelerates global facility rollout, leveraging India's low-cost structure.

• Key milestones ahead include final site selection in Gujarat, India, securing customer contracts, and arranging project financing.

Financial highlights

• Q1 cash operating expenses were $2.6M, a 46% reduction year-over-year; cash used in operating activities was $3.1M.

• Revenue increased by $246,000 year-over-year, mainly from engineering fees to the India JV and PET resin sales.

• Available liquidity at quarter-end was $12.3M; cash and cash equivalents at May 31, 2025, were $9.75M.

• Net loss per share improved to $(0.07) from $(0.11) year-over-year.

• Cash used in operations was $3.08M, down from $3.92M in the prior year.

Outlook and guidance

• Facility in India expected to be operational by end of 2027, with construction and startup spanning 24 months from fall 2025.

• Management expects continued net losses as commercialization advances but projects sufficient liquidity for at least twelve months.

• Modular construction strategy expected to reduce CapEx and accelerate project start-up in Europe and future facilities.

• Revenue growth anticipated from engineering services, technology licensing, and future facility operations.

• Confident in securing offtake agreements to meet profitability and ROI targets and generate cash flow for future expansion.